A large number of people in India do not work in factories, private companies, or government jobs. Many people earn their living by pulling rickshaws, running handcarts, working as laborers, or managing small businesses.
One of their biggest worries is how they will manage household expenses in old age when they may not be able to work properly.
To help such workers, the central government launched the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme. Under this scheme, workers in the unorganized sector can receive a monthly pension of ₹3,000 after the age of 60.
What is Pradhan Mantri Shram Yogi Maandhan Scheme?
The Pradhan Mantri Shram Yogi Maandhan Yojana was launched in 2019. It is a pension scheme specially designed for people working in the unorganized sector.
Under this scheme, beneficiaries have to deposit a small amount every month based on their age. The government also contributes the same amount to the beneficiary’s account.
After the beneficiary turns 60 years old, they receive a minimum monthly pension of ₹3,000.
Who Can Benefit From This Scheme?
This scheme is meant for low-income workers in the unorganized sector. It includes:
Street vendors
Rickshaw pullers
E-rickshaw drivers
Domestic workers
Construction workers
Agricultural laborers
Workers in leather and handloom industries
Small shopkeepers
Self-employed people
Eligibility Conditions
To join the scheme, the applicant must meet these conditions:
Age should be between 18 and 40 years
Monthly income should be ₹15,000 or less
The person must work in the unorganized sector
The applicant should not be an income taxpayer
Apart from this, the applicant should not already be a member of other government social security schemes such as:
EPFO
ESIC
National Pension System (NPS)
Monthly Contribution Amount
The amount you need to deposit every month depends on your age at the time of joining the scheme.
If a person joins at 18 years of age, they need to deposit only ₹55 per month.
If someone joins at 40 years of age, they need to deposit ₹200 per month.
The government contributes an equal amount to the account. For example, if you deposit ₹100 every month, the government will also contribute ₹100.
How to Apply for the Scheme?
Applying for this scheme is simple. You can visit your nearest Common Service Center (CSC) and register by providing:
Aadhaar card
Bank account details
At the time of registration, an auto-debit facility is activated. This means the monthly contribution amount will automatically be deducted from your bank account every month.
Pension Benefits After 60 Years
Once the beneficiary reaches 60 years of age, they start receiving a pension of ₹3,000 every month.
If both husband and wife join the scheme separately, both will receive individual pensions. In this way, a family can receive up to ₹6,000 per month as pension.
What Happens if the Beneficiary Dies?
If the beneficiary dies after the pension starts, the spouse receives a family pension.
The family pension is equal to 50% of the original pension amount. This means if the beneficiary was receiving ₹3,000 per month, the spouse will receive ₹1,500 per month.
Other Important Benefits of the Scheme
If a member misses installment payments, they can restart the scheme later by paying the pending amount along with interest decided by the government.
If a member exits the scheme within 10 years, they will get back only their own contribution along with savings bank interest.
If a member leaves the scheme after 10 years but before turning 60, they will receive their contribution along with interest earned on the pension fund.
After the death of a member, the spouse can continue the scheme by making regular contributions.
If the pensioner dies after the age of 60, the spouse or nominee will receive 50% family pension.
Major Advantages of the Scheme
The biggest benefit of this scheme is that workers can arrange a pension for old age by depositing a very small amount every month.
The government also contributes an equal amount, which increases the benefit for the subscriber.
Since the scheme is backed by the central government, it is considered reliable. The auto-debit feature also makes monthly payments easy and hassle-free.
Keep Inflation in Mind
To continue receiving the benefits, regular contributions must be made until the age of 60. If there is not enough money in the bank account, the installment payment may fail.
Another important thing to understand is that this scheme provides a fixed pension of ₹3,000 per month after the age of 60.
This amount does not increase with inflation. Therefore, people should not depend only on this scheme for future financial needs and should also consider other savings and investment options.
