Prime Minister Narendra Modi has launched a national pension scheme — Prime Minister Shram Yogi Mandhan Pension Yojana (PM-SYM) for the workers of unorganised sector.
More than 32 lakh people have enrolled for Prime Minister Shram Yogi Mandhan Yojana (PM-SYM) till date.

Under the scheme, an assured monthly pension of Rs 3,000 per month will be provided to workers in the unorganized sector after 60 years of age. However, to avail of the scheme, workers will have to contribute Rs 55/month.

Pradhan Mantri Shram Yogi Mandhan: Unorganised sector workers to get Rs 3,000 post-retirement

Eligibility: Anyone working in the informal sector whose monthly income is 15,000 or less and belongs to the age group of 18-40 years, is eligible to enroll for the scheme. The subscriber should not be paying an income tax or be covered by any other schemes like the National Pension Scheme, the Employees’ State Insurance Corp scheme or the Employees’ Provident Fund scheme.

Features: PM-SYM is a voluntary and contributory pension scheme on a 50:50 basis where a prescribed age-specific contribution shall be made by the beneficiary and a matching contribution by the central government.

Pradhan Mantri Shram Yogi Mandhan is launched to provide assured monthly pension of 3000 rupees per month, with a contribution of 55 rupees per month, for workers in unorganized sector after 60 years of age,” Goyal said.

He further said the scheme, which would benefit 10 crore workers, would be implemented from this fiscal itself. “It may become the world’s biggest pension scheme for the unorganized sector in five years,” he said. Goyal also announced an increase of gratuity limit from Rs 10 lakh to Rs 30 lakh from the next fiscal.

The new pension scheme will run alongside the existing Atal Pension Yojana, which guarantees returns post-retirement. He said 50 percent of the country’s Gross Domestic Product (GDP) comes from “sweat and toil of 42 crore workers in the unorganized sector.”

The government’s attempt to woo the unorganized sector comes after an estimated 200 million workers across various sectors carried out a two-day nationwide strike on January 8-9. About 91 percent of the informal sector, which was dependent on cash for survival, was harmed due to demonetization.

Among the most pertinent demands raised by the protesters was minimum wages of Rs 18,000 and assured pension of at least Rs 3,000. The government seems to have paid heed to their demands.

How to enroll

Eligible subscribers can enroll by visiting their nearest common service centres (CSCs). A savings bank account or Jan Dhan account and an Aadhaar card is needed to open this pension account. Enrollment services are provided at more than 3 lakh CSCs across the country.

Exit provisions:

a) If a subscriber exits the scheme within a period of less than 10 years, the beneficiary’s share of contribution only will be returned to him with savings bank interest rate.

b) If a subscriber exits after 10 years or more but before turning 60, the beneficiary’s share of contribution along with accumulated interest as actually earned by the fund or at the savings bank interest rate whichever is higher, will be returned.

How it works?

The monthly contribution by a worker joining the scheme at the age of 18, will be ₹55, with matching contributions from the government. The contributions will rise with higher age. The contribution amount for the first month shall be paid in cash for which subscribers will be provided with a receipt. CSCs also issue cards having unique ID numbers to all those who register for the scheme.

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