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Introduction
Pradhan Mantri Shram Yogi Maandhan is a social welfare scheme launched by the Ministry of Labour and Employment, Government of India in February 2019. It primarily covers poor labourers in the unorganised sector in the age group of 18 years to maximum 40 years.
It was announced in the interim budget of 2019 as a scheme for people who work in unorganized sectors. Unorganized sectors include rickshaw pullers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, home-based workers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers or in similar other occupations. India has an estimated 42 crore such unorganised workers across the country.
Under this scheme, the beneficiary would receive a minimum assured pension of Rs. 3000 per month, after attaining the age of 60 years. If the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension.
About Pradhan Mantri Shram Yogi Maandhan Yojana
- Salient Features of the Pradhan Mantri Shram Yogi Maandhan Scheme
- How to enrol for the Pradhan Mantri Shram Yogi Maandhan Yojana?
- Eligibility Criteria to Enrol for the Pradhan Mantri Shram Yogi Maandhan Yojana
- Fund Management
- Exit and Withdrawal
- Default
- Pension Pay Out
- FAQs on Pradhan Mantri Shram Yogi Maandhan Yojana
Salient Features of the Pradhan Mantri Shram Yogi Maandhan Scheme
- It is a voluntary and contributory pension scheme, where the beneficiary and the government contribute equal amounts towards a pension fund.
- The contribution amount is based on the age of the beneficiary at the time of enrolment.
- The beneficiary receives an assured pension amount of Rs.3000 once he/she attains the age of 60.
- The enrolment will be carried out by all the common services centres.
- All branch offices of LIC, ESIC/EPFO offices and all Labour offices of central and state governments will act as facilitators to aid the unorganised workers about the scheme, its benefits and the procedure to be followed, at their respective centres.
- The LIC will be the pension fund manager and responsible for the pension pay out.
- Conducive ‘Exit & Withdrawal’ provisions considering the erratic employment status of the unorganized sector.
- Irrespective of the entry age, contributions are to be made only till the age of 60.
- Contributions will be in way of auto-debit from the beneficiaries’ bank account or Jan Dhan accounts.
How to enrol for the Pradhan Mantri Shram Yogi Maandhan Yojana?
One can enrol for this scheme through online or at the nearest CSC (Common Service Centre). Online enrolment is done through the ‘Digital Seva Connect’ portal.
Offline enrolment steps are given below:
Contact your nearest CSC centre. Location of CSC centre can be ascertained from the information page on web sites of LIC of India, Ministry of Labour and Employment and CSC.
Carry the following documents while visiting the CSC:
- Aadhar Card
- Savings/Jan Dhan Bank Account details along with IFSC Code (bank passbook or cheque leaf/book or copy of bank statement as evidence of bank account)
- Initial contribution amount in cash for enrolment under the scheme
- Village Level Entrepreneur (VLE) present at the CSC, will verify your details with the UIDAI database. Your aadhar number, name of subscriber as printed on aadhar card and date of birth as given in aadhar card are some information that are verified.
- Further details like bank account details, mobile number, email-id, if any, spouse and nominee details will be entered into the system.
- Eligibility conditions are self-certified.
- System will consider the input data and auto-generate the monthly contribution payable according to age of the subscriber.
- You will now have to pay the amount of 1st subscription in cash to the VLE, who will generate a receipt for the same.
- Enrolment Form cum Auto Debit mandate will then be printed, on which you will place your signature.
- VLE shall scan the signed enrolment cum auto debit mandate and upload into the system.
- At the same time, a unique Shram Yogi Pension Account Number will be auto-generated and a ShramYogi Card will be printed at the CSC itself.
- You will receive the ShramYogi Card and a signed copy of the enrolment form for your record.
- You will also receive regular SMS on activation of auto debit and Shram Yogi Pension Account details.
Eligibility Criteria to Enrol for the Pradhan Mantri Shram Yogi Maandhan Yojana
Eligible applicants should be
- A worker from the unorganized sector
- Aged between 18 – 40
- Earning less than Rs.15000 or below per month
- Possessing an Aadhaar card
- Possessing a Savings Bank Account / Jan Dhan account number with valid IFSC
Applicants should NOT be
- Working in the organized sector
- Getting benefits from membership of EPF/NPS/ESIC
- An income tax payer
Fund Management
The PM-SYM will be a Public Sector Scheme operated by the Ministry of Labour and Employment and operated through Life Insurance Corporation of India and CSC's e-Governance Services India Limited (CSC SPV). LIC will be the Pension Fund Manager, which will be responsible for making the pension payouts.
Exit and Withdrawal
Taking into consideration the difficulties and unpredictable nature of Unorganized Workers' (UW) employability, the scheme's exit arrangements have been held flexible.
- In case of exit within a period of less than 10 years, the beneficiary will receive his share of contribution only, with savings bank interest rate.
- In case of exit after a period of 10 years or more but before 60 years of age, the beneficiary shall receive only his share of contribution, along with accumulated interest as actually earned by the fund or at the savings bank interest rate, whichever is higher.
- If the beneficiary has made regular contributions but dies due to any cause, his/ her spouse will be given an option to continue the scheme by making the regular contribution or exit by receiving the beneficiary’s contribution along with accumulated interest as actually earned by the fund or at the savings bank interest rate, whichever is higher.
- If the beneficiary has made regular contributions and becomes permanently disabled due to any reason before 60 years, and unable to continue under the scheme, his/ her spouse will be will be given an option to continue the scheme by making the regular contribution or exit the scheme by receiving the beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate whichever is higher.
- After the death of the subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.
Default
If a subscriber has not made consistent and regular contributions to his account, he/she will be allowed to regularize it by paying the entire outstanding dues, along with any penalty charges as decided by the Government.
Pension Pay Out
Beneficiaries join the scheme when they are between 18 – 40 years of age and contribute till 60 years of age. Once they attain the age of 60 years, they will start receiving a monthly pension of Rs.3000 by DBT, which comes with the benefit of family pension, as the case may be.
FAQs on Pradhan Mantri Shram Yogi Maandhan Yojana
1. How many years should a beneficiary contribute to this scheme?
The applicant has to contribute a fixed amount till he / she turns 60.
2. Who is not entitled to join this scheme?
Individuals covered under any statutory Social Security Scheme such as NPS, ESIC, EPFO and an income tax payee are not entitled to join the scheme.
3. Where should I submit my application for enrollment?
You may approach your nearest Common Service Centre for enrolment facilities.
4. Do I need to give proof of my date of birth or income?
No need for separate proofs for date of birth or income of the applicant. The basis of enrolment would be self-certification and the Aadhaar number produced during the application process. Nonetheless, the applicant may incur sufficient penalty in case of any false declaration.
End Note
Pradhan Mantri Shram Yogi Maandhan is a scheme that aims at securing pension for old age people of the unorganized sector. With an assured pension amount every month, workers in the unorganised sector will be able to lead a comfortable life in their retirement years.