India has a vast unorganised workforce, with crores of workers earning their livelihoods through daily wages, self-employment, or small-scale labor. These workers, unlike their counterparts in the organised sector, often lack access to formal social security mechanisms, especially for old age. To address this gap, the Government of India launched the Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM) in 2019. This scheme is a step towards ensuring old age protection and financial security for the unorganised workers who form the backbone of India’s economy.
Objective of PM-SYM
The primary objective of the PM-SYM scheme is to provide a minimum assured monthly pension of ₹3,000 after the age of 60 years to workers in the unorganised sector. This initiative is part of the government’s broader vision of inclusive development and universal social security. The scheme aims to alleviate the financial distress that elderly workers often face due to lack of savings, formal pensions, or employer support in their later years.
Key Features of PM-SYM
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Voluntary and Contributory Pension Scheme:
PM-SYM is a voluntary and contributory pension scheme. Workers contribute a small amount every month during their working years, which is matched by the central government on a one-to-one basis. -
Monthly Pension of ₹3,000:
After attaining the age of 60, the beneficiary receives a guaranteed monthly pension of ₹3,000, providing financial stability in old age. -
Government Contribution:
The government contributes equal amounts to the subscriber’s pension account every month, ensuring a collaborative effort towards old age security. -
Easy Enrollment:
The enrollment process is simple and can be done through the Common Service Centres (CSCs) across the country. Biometric authentication via Aadhaar is used for verification. -
Age-based Contribution:
The contribution varies based on the age at which the worker joins the scheme. For instance, a 18-year-old has to contribute ₹55 per month, while a 40-year-old contributes ₹200 per month. -
Pension Fund Management:
The funds are managed by the Life Insurance Corporation of India (LIC), which also ensures disbursement of the pension.
Eligibility Criteria
To ensure the scheme reaches the truly needy, certain eligibility conditions are in place:
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Age Limit: Must be between 18 and 40 years at the time of enrollment.
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Monthly Income: Should have a monthly income of ₹15,000 or less.
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Unorganised Worker: The applicant must be working in the unorganised sector (e.g., street vendors, rickshaw pullers, construction workers, domestic help, etc.).
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Aadhaar and Bank Account: Must possess an Aadhaar card and a savings bank account.
Exclusions
Certain categories are excluded from the scheme:
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Individuals paying income tax.
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Those covered under other social security schemes like EPFO, ESIC, or the National Pension Scheme (NPS).
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Government employees or those in organised sectors.
Benefits to the Nation
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Social Security Net:
PM-SYM brings millions of informal workers under the social security net, protecting them from destitution in old age. -
Poverty Reduction:
With assured income in later years, the scheme helps reduce elder poverty and dependence on others. -
Financial Inclusion:
The requirement of bank accounts and Aadhaar encourages formal financial participation of marginalised sections. -
Women Empowerment:
Many women in the unorganised sector, especially domestic workers and street vendors, benefit from the scheme, ensuring gender-inclusive security.
Challenges and Way Forward
Despite its noble intent, PM-SYM faces several implementation challenges:
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Lack of Awareness: Many potential beneficiaries remain unaware of the scheme.
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Low Enrollment: As of now, enrollment numbers are far below the expected target due to procedural hurdles and lack of information.
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Sustainability: Ensuring long-term sustainability of the fund, especially with increasing number of retirees, requires efficient fund management.
To address these issues, the government must strengthen outreach campaigns, simplify processes, and collaborate with NGOs and local bodies for better implementation. Leveraging digital platforms and improving service delivery at the grassroots can further enhance the scheme’s reach.
Conclusion
The Pradhan Mantri Shram Yogi Maan-Dhan Yojana is a commendable step toward social equity, aiming to provide a dignified life to India’s ageing unorganised workforce. While there are hurdles to overcome, with focused efforts, the scheme has the potential to transform the lives of millions and ensure that no worker in India retires into poverty.
