Pradhan Mantri Shram Yogi Maandhan Yojana: Check Features, Eligibility Criteria & Benefits of (PMSYM)

PMSYM is a pension scheme wherein the beneficiaries, as well as the central government, make equal contributions. The scheme allows an option for people employed in the unorganized sector to earn a monthly pension after turning 60 years of age. Let us look at the scheme’s benefits, eligibility criteria and other aspects.

What is PMSYM?

PMSYM, or Pradhan Mantri Shram Yogi Maandhan Yojana, is a pension scheme intended to secure the financial situation of Unorganized Workers (UW) after their retirement during old age. Workers can save a portion of their income while they are earning so that they can get a return during their old age when they are unable to work. Under the scheme, equal contribution is made by the government of India along with the plan subscriber to help them save a decent amount as pension. The Unorganized Workers are people employed in the unorganized sector. It can also be a person working in the organized sector but without any cover under the acts cited under Schedule II of the scheme, such as the Employee’s State Insurance Act, EPF Act, Payment of Gratuity Act, etc.

Features of Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM)

Below are some important features of the PM Shram Yogi Maandhan Yojana:

PMSYM Features	Details
Scheme initiated by	Government of India
Scheme administered by	Labour and Employment Ministry
Scheme implemented by	Life Insurance Corporation of India (LIC) and CSC e-Governance Services India Limited
Fund manager of PMSYM	LIC of India
Scheme nature	It is a central government scheme since the contribution is made by the central government entirely with no contribution from the state government It is a voluntary scheme where unorganized workers contribute a fixed amount The government pays an equal amount like the unorganized worker
Who is eligible?	The plan is available for unorganized workers only
Minimum pension offered under the plan	INR 3000 per month for applicants who are 60 years and above If the insured dies after 60 years of age, the spouse is eligible to receive the benefit If the insured dies before 60 years of age, the spouse can continue the plan by making regular contribution or may exit the plan and withdraw the pension amount
PMSYM payment method	The payment under the scheme is audited on a monthly basis from the bank account of the unorganized worker The payment can be made on a monthly, quarterly, half-yearly and yearly basis
Other facilities	Beneficiary is not charged any administration fee for the pension fund Nomination facility is available
Beneficiaries	The scheme is serving over 42 crore workers in the unorganized sector in India

 

Eligibility Criteria

Below are the eligibility criteria to enroll in the PM Shramyogi Maandhan Yojana:

Eligibility Criteria	Details
Who are the beneficiaries	Unorganized workers
Age of entry	18 to 40 years
Age limit for contribution	Till 60 years
Age of getting pension payout	From 60 years onwards
Income limit	Up to INR 15,000 per month
Contribution Amount	Between INR 55 to INR 200 (as per the entry age of the worker)
Who is not eligible?	If the worker is a member of EPF/NPS/ESIC schemes offered by the union government If the worker pays income tax
Documents required	Aadhar Card Savings bank account details

 

Benefits of PM Shram Yogi Maandhan Yojana

The beneficiaries of the PM SYM yojana are offered financial aid when they are older, above 60 years of age or in case of any disability. Here are the specific conditions mentioned in the table below:

Benefit	Conditions	Details
Pension benefit	The worker has to pay a regular contribution of INR 55 – 200 till they turn 60 years	Upon reaching 60 years, the beneficiary will receive an assured pension of INR 3000/month In case of the death of the insured, the spouse can get 50% of the assured pension
Disablement benefit	If the worker stops contribution due to permanent disablement	In case the worker becomes permanently disabled before turning 60 years, the spouse can contribute the monthly installment to continue the scheme and to receive benefits Else, the subscriber can exit from the policy
Exit Benefit	If the insured exit the plan due to unemployment or irregular pay at a job Or due to permanent disability Or due to the demise of the subscriber	If the worker exits before 10 years of joining PMSYM, they can avail the complete contribution amount with interest deposited at their bank account (excluding the govt. contribution) If the worker exits the plan on or after the completion of 10 years, they receive the deposited contribution amount with high interest

Note that if both the applicant and the spouse die, the PMSYM amount is credited back to the PM SYM Scheme fund.

How to Apply for PMSYM?

To apply for PMSYM, the unorganized workers can follow the below steps:

Apply Through Common Service Centre (CSC)

Here are the steps:

• The worker can visit the nearest CSC or Common Services Centre with their Aadhaar Card and Savings Bank account passbook
• Provide all the relevant documents at the CSC to get registered such as;

1. Aadhar Card
2. Savings account/ Jan-Dhan account details
3. IFSC code (of savings account)

• Pay the first installment in cash to the VLE or Village Level Entrepreneur at the CSC
• The VLE will seek the below details to validate the subscriber;

1. Aadhar number
2. Subscriber name
3. Date of Birth (DoB)

• Once the verification of the applicant is done, the VLE would require the below details to initiate the PM SYM registration process for the subscriber

1. Mobile number
2. Email id
3. Spouse details
4. Bank account details
5. Nominee details

• The applicant has to self-certify the details of eligibility
• The monthly contribution amount to be paid by the worker will be displayed automatically as per the entry age of the subscriber
• The first installment has to be paid in cash by the subscriber to the VLE
• The subscriber is required to sign the enrolment form along with the form that mandates auto-debit of monthly installment from the subscriber’s bank account
• Once the above requirement is fulfilled, the application form is uploaded to the PMSYM system by the VLE after scanning it
• The system will generate a SPAN number or Shramyogi Pension Account Number, which will be printed and offered as the Shram Yogi card to the subscriber.