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.

Unorganized Sector in India

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.

Eligibility Qualifications

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).

How does the PM-SYM Scheme work?

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.

Pension Amount

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.

How to Apply for the PM-SYM Scheme?

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.

Learn more about your Pension Plans here.

DISCLAIMER

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.



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