PM - SYM: Pradhan Mantri Shram Yogi Maandhan Yojana

By: Amit kumaR Agarwal


The objective of Pradhan-Mantri Shram Yogi Maandhan Yojana is - Ensuring Financial Security for India’s Unorganised Workforce

PM-SYM will assure monthly pension for the enrolled unorganized sector workers during their old age. It is for the first time since independence that such a scheme is envisaged for the crores of workers engaged in the informal sector - stated PM, Narendra Modi.

Introduction
Pradhan Mantri Shram Yogi Maandhan (PM-SYM), is a voluntary and contributory pension scheme launched by the Government of India to provide social security to unorganised workers. This scheme ensures a minimum monthly pension of ₹3,000 after the age of 60 for workers who belong to the unorganised sector and have a monthly income of up to ₹15,000. The scheme is a tribute to the workers in the Unorganized sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).

Unorganized Workers are mostly engaged as home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless laborers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers or workers in similar other occupations. As per the e-Shram portal, there are over 30.51 crore unorganised workers registered, as on 31 December 2024.

PM-SYM was introduced in the Interim Budget 2019. The scheme is administered by the Ministry of Labour and Employment in collaboration with Life Insurance Corporation of India (LIC) and Common Service Centres e-Governance Services India Limited (CSC SPV) for seamless implementation. LIC is the Pension Fund Manager and responsible for Pension pay out. The scheme is a part of the government’s broader social security initiatives and aligns with the vision of universal pension coverage for workers in the unorganised sector.

Key Features of PM-SYM
  • The Pradhan Mantri Shram Yogi Maandhan scheme provides numerous benefits, ensuring financial security in old age for unorganised sector workers.
  • Minimum Assured Pension: ₹3,000 per month after 60 years of age.
  • Government Contribution: The Government of India matches the worker’s contribution on a 1:1 basis.
  • Voluntary and Contributory: The scheme is voluntary, allowing workers to contribute based on their affordability and requirement.
  • Family Pension: If the beneficiary passes away, the spouse receives 50% of the pension amount as a family pension. Family pension is applicable only to spouse.
  • Exit Provisions: Participants can exit the scheme under specified conditions (detailed in section 9).
  • Easy Enrolment: Eligible workers can register at Common Service Centres (CSCs) or through the Maandhan portal.
  • Fund Management: The scheme is administered by LIC, ensuring financial stability and credibility.

Eligibility Criteria:
  • To enroll in PM-SYM, individuals must meet the following eligibility conditions:      
  • Age Requirement: 18 to 40 years.
  • Income Limit: Monthly income should be ₹15,000 or less.
  • Unorganised Sector Employment: Workers engaged in professions such as:
  • Street vendors, rag pickers, rickshaw pullers
  • Construction workers, daily wage labourers
  • Agricultural workers, beedi workers
  • Domestic workers, weavers, artisans, fishermen, leather workers, etc.

Exclusion Criteria:
  • Should not be covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension Scheme (NPS).
  • Should not be an income taxpayer.
  • Should not be receiving benefits from any other government pension scheme.

Documents Required:
  • Aadhaar Card
  • Savings bank account or Jan Dhan account details with IFSC
  • Mobile number

Contribution Structure:
  • The contribution amount varies based on the age at the time of enrolment. The earlier a worker enrolls, the lower the monthly contribution Upon reaching 60 years of age, beneficiaries start receiving a fixed pension of ₹3,000 per month for their lifetime.

Enrolment Process
  • Enrolment in PM-SYM is facilitated through Common Service Centres (CSCs) across India. The steps include:
  • Visit a CSC with Aadhaar and a savings bank account.
  • Provide biometric authentication using Aadhaar.
  • Fill the online registration form.
  • First subscription is to be paid in cash.
  • Choose the auto-debit facility from the bank account.
  • Receive a PM-SYM card upon successful enrolment.

Alternatively, eligible workers can enroll through the Maandhan website portal

Conclusion
PM-SYM is a landmark initiative that provides financial security to millions of unorganised workers. By ensuring a monthly pension of ₹3,000, it helps workers lead a dignified life post-retirement. With large number of enrolments and ongoing promotional efforts, PM-SYM aims to provide universal pension coverage, creating a more inclusive social security framework in India.