Pradhan Mantri Shram Yogi Maandhan (PM-SYM): Securing a Dignified Future for India’s Unorganised Workers

The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme, launched by the Government of India, is a landmark social security initiative designed to provide old-age protection and financial stability to unorganised workers. This voluntary and contributory pension scheme is a vital step towards creating an inclusive social security framework in a nation where a significant portion of the workforce operates in the informal sector. As a tribute to the unorganised workers who contribute around 50% of the nation’s Gross Domestic Product (GDP), PM-SYM ensures they can lead a life of dignity and financial independence post-retirement.

The scheme, which was introduced in the Interim Budget 2019, is a collaborative effort administered by the Ministry of Labour and Employment, in partnership with the Life Insurance Corporation of India (LIC) and Common Service Centres e-Governance Services India Limited (CSC SPV). LIC serves as the Pension Fund Manager, overseeing the fund and ensuring a seamless pension payout to beneficiaries.

Objectives of the Scheme

The primary objective of the PM-SYM scheme is to provide social security and old-age protection to the unorganised workers of India. The scheme aims to achieve this through the following specific goals:

• Assured Pension: To provide a minimum assured monthly pension of ₹3,000 to unorganised workers after they reach the age of 60 years.
• Financial Inclusion: To bring millions of unorganised workers, who are not covered under any other formal pension scheme, into a structured social security net.
• Encouraging Savings: To promote a habit of regular savings among unorganised workers through a contributory model, which is matched equally by the government.
• Family Security: To extend financial support to the family of the beneficiary by providing a family pension to the spouse in the event of the worker’s demise.
• Universal Pension Coverage: To align with the broader national vision of providing universal pension coverage for all workers in the unorganised sector, creating a more secure and equitable society.

Key Features of the Scheme

PM-SYM is characterized by several key features that make it accessible and beneficial for its target audience:

• Minimum Assured Pension: A guaranteed monthly pension of ₹3,000 is provided to the subscriber after they reach 60 years of age.
• Government Contribution: The Government of India provides a 1:1 matching contribution to the worker’s monthly premium, effectively doubling the savings for old age.
• Voluntary and Contributory: The scheme is not mandatory, allowing workers to enroll based on their financial capacity and need. The monthly contributions are made by the worker, along with the government’s matching share.
• Family Pension: In the unfortunate event of the beneficiary’s death, the spouse is entitled to receive 50% of the pension amount as a family pension. This provision is exclusively for the spouse.
• Flexible Exit Provisions: The scheme offers flexible exit options, acknowledging the often-erratic nature of employment in the unorganised sector. Provisions are in place for contributors who need to exit the scheme before maturity, with their contributions being refunded with interest.
• Easy and Widespread Enrolment: The enrolment process is made simple through a vast network of Common Service Centres (CSCs) across the country. Additionally, a self-registration option is available on the official Maandhan portal.
• Fund Management by LIC: The scheme’s funds are managed by the Life Insurance Corporation of India (LIC), which ensures financial stability, credibility, and security of the pension corpus.
• Donate-a-Pension Module: A unique feature, “Donate-a-Pension,” was launched to encourage employers to contribute the premium of their support staff, such as domestic workers, drivers, and helpers, thereby increasing the enrolment base.
• Customer Support: A 24/7 customer care number (1800 2676 888) and a web portal with a grievance redressal facility are in place to assist workers. All Labour offices, LIC branches, and offices of ESIC/EPFO also act as Facilitation Centres to provide information and guidance.

Eligibility Criteria

To enroll in the PM-SYM scheme, an individual must meet the following conditions:

• Age: The entry age must be between 18 and 40 years.
• Income: The monthly income of the worker should be ₹15,000 or less.
• Unorganised Sector Employment: The worker must be engaged in an unorganised profession. This includes a wide range of occupations, such as home-based workers, street vendors, rag pickers, rickshaw pullers, construction workers, agricultural workers, beedi workers, domestic workers, weavers, artisans, fishermen, and leather workers, among others.
• Exclusion Criteria: The scheme is not available to those who are already covered under other statutory social security schemes like the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or the National Pension Scheme (NPS). Income taxpayers are also excluded from the scheme.
• Required Documents: The required documents for enrolment are an Aadhaar Card, a savings bank account or Jan Dhan account with IFSC details, and a mobile number. No separate proof of age or income is required, as the process relies on self-certification.

Contribution Structure

The contribution model of PM-SYM is based on the entry age of the worker. The monthly contribution is made by the worker and is matched equally by the Central Government. The earlier a worker joins the scheme, the lower their monthly contribution will be. The contribution amounts are as follows:

Application Process (Step by Step)

The enrolment process for the PM-SYM scheme is straightforward and can be completed at a Common Service Centre (CSC) or through self-registration on the official portal.

1. Visit a CSC: The eligible worker should visit their nearest CSC with their Aadhaar Card and savings bank account or Jan Dhan account details.
2. Authentication: Provide Aadhaar number, name, and date of birth for biometric or demographic authentication.
3. Online Registration: A Village Level Entrepreneur (VLE) at the CSC will assist in filling out the online registration form. The worker will need to provide their mobile number, email, spouse details, bank account details, and nominee details.
4. First Contribution: The first monthly subscription is paid in cash to the VLE.
5. Auto-debit Mandate: The worker must provide a signed auto-debit mandate form, which the VLE will scan and upload. This enables the automatic deduction of subsequent contributions from the bank account.
6. PM-SYM Card: Upon successful enrolment, a unique Shram Yogi Pension Account Number (SPAN) is generated, and the worker receives a PM-SYM card.

Alternatively, eligible workers can register themselves online through the Maandhan portal.

Exit and Withdrawal Provisions

The PM-SYM scheme has flexible exit provisions, acknowledging the financial challenges and unpredictable nature of employment for unorganised workers. The withdrawal terms are as follows:

• Exit Before 10 Years: If a worker exits the scheme within a period of less than 10 years, their share of the contribution is refunded with the interest rate equivalent to a savings bank account.
• Exit After 10 Years but Before 60 Years: If a worker exits after 10 years but before reaching the age of 60, they will receive their share of the contribution along with the accumulated interest as earned by the fund or at the savings bank interest rate, whichever is higher.
• Death or Permanent Disability Before 60 Years: In case of the beneficiary’s death or permanent disability due to an accident before the age of 60, their spouse has the option to either continue the scheme by making regular contributions or to withdraw the contributed amount along with the accumulated interest, whichever is higher.
• Death After 60 Years: After the beneficiary starts receiving the pension at age 60 and subsequently passes away, the spouse will receive 50% of the pension as a family pension.
• Default: In case a subscriber fails to make continuous contributions, they can regularize their account by paying the outstanding dues along with any penalty charges as decided by the government.

Implementation and Current Status

The government has taken several proactive steps to ensure the effective implementation and widespread reach of the PM-SYM scheme. These include:

• Holding regular review meetings with State and Union Territory governments.
• Collaborating with Common Service Centre (CSC) heads to boost enrolment drives.
• Introducing new features on the portal, such as Voluntary Exit, Revival Module, Claim Status, and Account Statements, to enhance user experience.
• Extending the revival period for dormant accounts from one to three years.
• Establishing a two-way integration between the PM-SYM and e-Shram portals to identify and enroll eligible unorganised workers more efficiently.
• Launching extensive social media and SMS campaigns to raise awareness among potential beneficiaries.
• Engaging with various government departments and financial institutions to increase the outreach of the pension scheme.