The Government of India introduced Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM) for unorganized workers to provide them with a monthly pension income. It is a voluntary pension scheme based on equal contributions from beneficiaries and the government. The scheme aims to ensure social security and financial stability of the persons employed in the unorganised sector during their old age.
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Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM) is a monthly pension scheme meant to offer financial protection and social security to Unorganized Workers (UW) in their old age.
The Unorganized Worker (UW) saves a part of their monthly income to the PMSYM scheme during their prime years of employment. The government also contributes an equal sum to the pension fund of the worker.
An Unorganized Worker (UW) is defined as a person working in the unorganized sector or an employee of organized sector who is not covered under any Acts mentioned under Schedule-II. Some of the notable acts under this schedule are the Payment of Gratuity Act, Employee’s State Insurance Act, and EPF Act.
Let us understand some important features of the PMSYM scheme in the table below:
Features of PMSYM | Details |
Scheme by | Government of India |
Administered by | Ministry of Labour and Employment |
Implemented by | Life Insurance Corporation of India (LIC) and CSC e-Governance Services India Limited |
PMSYM Fund Manager | Life Insurance Corporation of India (LIC) |
Nature of Scheme |
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Who can Apply | Unorganised Workers (UW) |
Minimum Pension Assured | The minimum assured Shram Yogi Maandhan is:
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Payment method to PMSYM |
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Other Facilities |
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Beneficiaries | PMSYM benefits approximately 42 crores workers working in unorganized sectors like: Street vendors, rickshaw pullers, mid-day meal workers, construction workers, rag pickers, rag pickers, bangle makers, domestic workers, agricultural workers, etc. |
To enrol in the PM Shramyogi Maandhan Yojana, one must meet the following criteria:
Eligibility Criteria | Details |
Beneficiaries | Unorganised Workers (UW) |
Entry Age | Between 18-40 years of age |
Contribute to PMSYM Until | Pay till 60 years of age |
Pension Payout Age | From 60 years of age |
Income Limit | Up to Rs. 15,000/month |
Instalment Amount | Between Rs. 55- Rs. 200 (depending on the entry age of the subscriber) |
Not Eligible if | The worker is not eligible to enrol into PMSYM Scheme if:
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Documents Required | The Shramyogi must possess the following documents:
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The PMSYM provides the beneficiaries with financial assistance in their old age or upon disablement. Let us learn the specific conditions in the table below:
Benefit | Conditions | Details |
Pension Benefits |
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On Disablement |
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If permanent disablement before age of 60 years
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On Exit from PMSYM | If the subscriber chooses to exit from the Maandhan Yojana due to:
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Note: Upon the demise of both the subscriber and their spouse, the Shram Yogi Maandhan Fund corpus is credited back to the PMSYM funds.
The unorganised workers can enrol in the Pradhan Mantri Shramyogi Maandhan Yojana in the following way:
Step 1: Visit nearby CSC e-Governance Special Purpose Vehicles (SPVs).
Step 2: Provide all the relevant documents at the CSC to help them register your enrolment:
Aadhar Card
Savings account/ Jan-Dhan account details (Account passbook/ Cheque leaflet/ bank account statement)
IFSC code of the savings bank account
Step 3: Pay in cash the initial contribution sum to the Village Level Entrepreneur (VLE) at the CSC.
Step 4: The VLE fills in the required details to authenticate the subscriber:
Aadhar number
Name of the subscriber
Date of Birth (DoB)
Step 5: Upon authentication of the subscriber, the VLE fills in the following details to register the subscriber:
Mobile number
Email id
Details of Spouse
Bank account details
Details of Nominee
Step 6: The subscriber self-certifies to fulfil the eligibility criteria.
Step 7: The PMSYM registration system will display the automatically calculated monthly contribution based on the entry age of the subscriber.
Step 8: The subscriber pays in cash the 1st subscription instalment to the VLE.
Step 9: The subscriber signs the print copy of the enrolment form and the form mandating auto-debit of instalments.
Step 10: The VLE scans the application form and uploads it to the PMSYM system.
Step 11: The system generates a unique Shramyogi Pension Account Number (SPAN). The VLE will print and give the Shram Yogi Maandhan Card to the subscriber.
Employment in unorganised sectors brings in irregular income flow making the workers and their family’s lives financially vulnerable. PMSMY benefits such people. It is important for those people to invest in the scheme who want to secure funds for future. PMSMY is a scheme for all employees of unorganized sector.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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