What is PMSYM (Pradhan Mantri Shram Yogi Maandhan Yojana) Scheme?

The Central Government, in its February 2019 Union Budget, launched a new pension scheme for workers of the unorganized sectors. The PM-SYM Yojana, which is short for Pradhan Mantri Shram Yogi Mandhan Yojana, was announced by the then Finance Minister of India, Mr. Piyush Goyal. Let us take a detailed look at this scheme.

The unorganized sector is a labour-intensive category of workers which comprises of people working in construction, oil mills, stone quarries, salt mines as well as weavers, casual labourers, loaders, vegetable, fruit and newspaper vendors, domestic workers, home-based workers cobblers and other similar occupations.

The beneficiary should be -

• An unorganized worker
• Between the age of 18 and 40 years
• Having a monthly income of Rs. 15000 and below

The beneficiary should not be covered under any government-sponsored social security scheme like the National Pension Scheme (NPS) or the Employees’ State Insurance Corporation Scheme (ECICS) or the Employee Provident Fund Scheme (EPFS).

The PM-SYM Yojana is a voluntary scheme based on contributions made by the subscriber. Once the beneficiary subscribes to the plan, he or she shall be required to contribute a specific monthly premium based on his or her age.For example, a person who enters the scheme at 18 years of age shall be required to contribute Rs. 55 per month towards the scheme, as opposed to a person who registers at the age of 40 shall be required to contribute Rs. 200 per month.Meanwhile, the Central Government shall be making an equal contribution to the subscribers of this scheme. The premium shall have to be paid till the beneficiary reaches the age of 60.

Once the beneficiary attains 60 years of age, he or she shall start receiving a monthly pension of Rs. 3000. In the event of the beneficiary's death, their family shall be entitled to receive half of the monthly pension, which is Rs. 1500 per month. The family pension shall be limited to the spouse of the deceased beneficiary.

All eligible subscribers to the scheme must possess an Aadhar Card and a Savings Bank Account or a Jan Dhan Account number with IFSC. Interested subscribers shall be required to visit their nearest Common Service Centre (CSC), which shall electronically enroll the subscriber to the scheme.Thus, the Pradhan Mantri Shram Yogi Mandhan scheme which aims at providing old age security in the form of pension to crores of unorganised workers.There are two ways to enrol.

1. Aadhaar Card.
2. Details of the savings or Jan Dhan bank account, together with the IFS code.
3. Initial monetary commitment for enrolment in the programme.

• You can choose self-enrolment via online registration.
  or
• You can enrol via the Common Service Center. Here’s the process:
• The nearby CSC centre must be visited by the interested, eligible person.
• They must bring the following things with them when they visit CSC for enrolment:
• Village Level Entrepreneurs (VLE) present at the CSC will key in the Aadhaar number, subscriber’s name and birth date as on Aadhaar card, and the same shall be verified with the database.
• The initial contribution amount is to be paid in cash for enrolment under the scheme.
• Further information will be gathered, including spouse and nominee information, information pertaining to bank account, mobile number, and email address, if any.
• The eligibility requirements will be self-certified.
• The system will decide the monthly payments based on the subscriber's age automatically.
• The starting subscription fee must be paid in cash to the VLE and obtain a receipt.
• Additionally, the subscriber will print and sign an enrolment form with an auto-debit obligation. The signed enrolment and mandate of auto debit will subsequently be scanned by the VLE and uploaded into the system.
• At the same time, CSC will generate a unique and distinct Shram Yogi Pension Account Number and print Shram Yogi Cards.
• The subscriber will obtain a Shram Yogi Card and a copy of the enrolment form that has been signed after the procedure is complete.
• Additionally, he/she will get regular SMS updates on the Shram Yogi Pension Account information and auto debit activation.

The Pradhan Mantri Shram Yogi Mandhan scheme is a central government program for the social security and protection of older Unorganised Workers (UW).

Here are the prerequisites:1. Primarily, they must be an unorganised worker (UW)2. Entry age: 18 to 403. Monthly earnings of at least Rs. 15,000/-.4. The individual should not work in the Organized Sector (ESIC, EPF, or NPS membership).5. The individual should not be an income taxpayer.6. The individual must have an Aadhaar card and an IFSC-coded bank account or account number for the Jan Dhan scheme.

The exit conditions of the PMSYM scheme have been left flexible in light of the difficulties and sporadic nature of these workers' employability. Exit rules are as follows:

1. If an individual withdraws from the plan in less than ten years, then just his/her portion of the contribution will be refunded to him/her, along with interest from a savings account.
2. If the individual withdraws after ten years but before reaching superannuation age or till they turn sixty, then the beneficiary will obtain their share of the contribution, as well as interest gained by the overall fund or at the interest rate of a savings bank, whichever amounts more.
3. If a person made frequent and periodic contributions and passed away for any reason, then their spouse will have the option of continuing the plan or exiting and obtaining the contribution plus accrued interest.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.