PMSYM - Pradhan Mantri Shram Yogi Mandhan Yojana

PMSYM, short for Pradhan Mantri Shram Yogi Mandhan is a social scheme initiated by the Ministry of Labour and Employment (India) of Government of India in February 2019.

It is a pension scheme for the labour class people who belong to the unorganized sector and fall in the age group of a minimum of 18 years to a maximum of 40 years. It offers eligible citizens a regular pension once they attain the age of 60 years just by contributing small amounts every month.

Key Features of Pradhan Mantri Shram Yogi Maandhan

• The scheme was launched in February 2019 by the then Finance minister of India, Mr Piyush Goyal
• The scheme actually started on 15th February 2020
• Category of the beneficiary that can avail of the benefits of this scheme is Unrecognized sector workers
• Number of beneficiaries under this scheme is approximately 42 crores
• The contribution which has to be made towards this scheme are as follows:

1. For 18 years of age- Rs. 55 per month
2. For 29 years of age- Rs. 100 per month
3. For 40 years of age- Rs. 200 Per month
4. Above 40 years – Not eligible

• PMSYM scheme is available to workers with a monthly salary below Rs. 15000
• The subscriber will receive an assured pension amount of Rs. 3000 under this scheme
• The maximum contribution towards this scheme cannot exceed Rs 2400 in a year (Rs. 200 per month)
• The scheme comes under Central Govt. Voluntary and Contributory Pension Scheme
• Individuals can register their names under this scheme by visiting local Jan Seva Kendra (CSC). Aadhar and Jan Dhan Bank accounts are necessary
• In the case of the demise of the subscriber, the spouse of the beneficiary will be entitled to receive 50% of the pension as a family pension. The family pension is only applicable to the spouse; children are also not eligible for the same

Due to the inconsistent nature of the workers under the unorganized sector, the exit provisions have been kept flexible. Even if the subscriber decides to exit prematurely, the amount will be credited with interest at the savings bank account rate or the rate at which the fund earned income (if the subscriber opts out of the scheme after 10 year period), whichever is higher

PMSYM Enrollment Process

• Interested and eligible persons will have to visit the nearby CSC (Common Service Centres). CSCs can be located from the information page on the websites of LIC, Ministry of Labour and Employment and CSC
  
  
• Documents needed for enrolment are

1. Aadhar card
2. Bank account details along with IFS code (one can use bank passbook or copy of bank statement as evidence of bank account)
3. A working mobile for OTP verification
4. Initial contribution for opening an account under the scheme

• The village-level entrepreneur (VLE) at the CSC will register the Aadhar number, subscriber name, and date of birth as printed on the Aadhar card and the same will be verified UDAI database through a process of demographic authorization
  
  
• The system will auto-calculate the monthly contribution according to the age of the subscriber
  
  
• The subscriber will also have to pay the initial contribution amount to the VL who will then hand over a receipt to the subscriber. Meanwhile, a unique SYM number will be generated and an SYM card will be printed at CSC.
  
  
• An enrolment form cum Auto debit mandate will then scan the signed mandate and upload it into the system.
  
  
• Upon successful completion of the process, the subscriber will be having an SYM card and a signed copy of the enrolment form for the record

Who all are Eligible for the PMSYM Scheme?

This scheme is meant for any work belonging to the unorganized sector.

By unorganized sectors, one means the type of community in which the wages are not fixed due to the erratic nature of the works involved. Workers such as street vendors, cobblers, brick makers, leather workers, rag pickers, rickshaw pullers, landless labourers, beedi workers, etc are a few examples of labour belonging to the unorganized sector.

The workers whose income depends on the work they do on a daily basis and who don’t have a fixed income to earn a living are eligible to apply for Pradhan Mantri Shramyogi Yojana.

The workers belonging to the unorganized sector earning an income of less than rupees 15,000 per month and falling under the age group of 18 to 40 years are also eligible for Pradhan Mantri Shramyogi Yojna.

Who is Not Eligible?

• Any individual who is a taxpayer
• Individuals engaged in the organized Sector or a member of any of the following schemes – NPS/EPF/ESIC

 Benefits of PMSYM Yojana

•  The government will make an equal contribution to the scheme as the candidate according to his/her age.
  
  
• This scheme will be helping more than 42 crore workers belonging to the unorganized sectors of India.
  
  
• Even if the candidate wants to opt out of the scheme before 10 years, the share of the candidate will be given back along with the interest amount accrued.
  
  
• If the candidate opts out after 10 years but before 60 years of age, the share of the candidate’s contribution adding the accumulated interest will be given back to the candidate.
  
  
• If the candidate is making proper contributions but has an untimely demise, his or her spouse would be entitled to the continuation of the scheme. If the spouse is entitled to it, he/she is supposed to pay the regular further contributions. If it’s not possible under any condition, one can always exit the scheme by taking the candidate’s contribution to the date in addition to the interest.

On a closing note

People falling in the unorganized sectors depend on daily wages to run their household and while in their old age, they find it difficult to do the same. They don’t have pensions or savings on which they can rely on.

To overcome this problem, the central government of India has come up with a useful scheme to make the lives of labour class people brighter and seamless even if they are not in the condition to work anymore.