Pradhan Mantri Shram Yogi Maandhan (PM-SYM)

Background and Rationale

India’s workforce is predominantly in the unorganised sector—street vendors, rickshaw pullers, construction workers, domestic workers, etc. Unlike salaried employees in the formal sector, these workers lack social security like PF, gratuity, or pension.

👉 To address this gap, the government launched the PM-SYM—a dedicated pension scheme for unorganised workers, ensuring that even they get old-age financial protection.

Nature of the Scheme

• Type: Central Sector Scheme (funded by Union Government) launched in 2019
• Nature: Voluntary and contributory, i.e., both worker and government contribute equally (50:50 basis).
• Implementing Agency: Life Insurance Corporation of India (LIC) acts as Pension Fund Manager and is responsible for pension payouts.

This means the scheme runs like a mini pension fund, where workers contribute during their working years and receive a fixed pension after retirement.

Objective

• To provide old-age income security for unorganised workers by ensuring they receive a minimum pension of ₹3,000 per month after 60 years.

In short: A social safety net for the weakest sections of society in their old age.

Salient Features

(a) Voluntary and Contributory

• Workers aged 18–40 years can voluntarily enrol.
• They contribute a small, age-specific premium (e.g., an 18-year-old pays ₹55/month, a 40-year-old pays ₹200/month).
• The Central Government contributes an equal amount.

(b) Minimum Assured Pension

• Guaranteed ₹3,000/month pension after 60 years.

(c) Family Pension

• If subscriber dies, spouse gets 50% pension as family pension.
• Only spouse is eligible (not children or parents).

(d) Compatibility with Other Schemes

• Can be combined with Atal Pension Yojana (APY).

(e) Enrollment

• Done through Common Service Centres (CSCs) across India.
• Requires Aadhaar card + Bank account / Jan Dhan account (with IFSC code).

(f) Regularisation of Contributions

• If contributions are missed, the subscriber can pay arrears plus penalty (as fixed by government).

Exit and Refund Rules

Like any pension fund, there are provisions if a worker exits early or faces unforeseen issues:

• Exit before 10 years → Only own contribution + simple savings interest.
• Exit after 10 years but before 60 years → Own contribution + higher of (fund interest / savings bank rate).
• Permanent disability before 60 years → Spouse can either:
  • Continue the contributions, OR
  • Exit and withdraw.

Exclusions

Not everyone can join. Excluded categories are:

• Those already covered under NPS, ESIC, or EPFO.
• Taxpayers (because the scheme is meant only for vulnerable, low-income workers).

Critical Understanding

• PM-SYM is essentially a micro-pension for unorganised workers.
• It follows a co-contribution model: both worker and government contribute equally until the worker turns 60.
• LIC ensures the financial discipline and payout guarantee.
• The scheme is simple, portable, and targeted—a crucial social security safety net.

👉 In simple words, this scheme tells the unorganised worker:

“You save a small amount every month, we (the government) will match it. Together, we’ll build a fund that guarantees you dignity in old age with a steady pension.”