The Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) is a pioneering social security scheme launched by the Government of India on 15th February 2019. Aimed at providing pension benefits to unorganized workers, who form a significant portion of the country’s workforce, the scheme seeks to ensure a secure and dignified life for them during their old age.
Implemented through a collaboration between the Ministry of Labour and Employment, Life Insurance Corporation of India, and CSC e-Governance Services India Limited, PM-SYM addresses the critical issue of financial vulnerability faced by millions of unorganized workers in the country.
Main Objective of PM-SYM
The primary objective of the Pradhan Mantri Shram Yogi Mandhan Yojana (प्रधानमंत्री श्रम योगी मानधन योजना) is to offer pension benefits to unorganized workers who earn a monthly income of less than Rs 15,000 and do not have access to any formal social security scheme. By providing a pension of ₹3,000 per month starting from the age of 60, the plan aims to promote a culture of savings and financial security among the vulnerable sections of society. Additionally, in case of the subscriber’s demise, the spouse is entitled to receive 50% of the pension amount as a family pension.
Features of PM-SYM
The PM Shram Yogi Mandhan Yojana comes with several key features that make it accessible and attractive to the target beneficiaries:
- Inclusive Coverage
The scheme is designed to benefit approximately ten crore unorganized workers across the country, who often work in construction, agriculture, domestic work, and other informal occupations.
- Monthly Pension
Eligible subscribers who contribute regularly will receive a fixed monthly pension of ₹3,000 after attaining the age of 60 years, ensuring financial stability during their retirement.
- Family Pension
In the unfortunate event of the subscriber’s demise, the spouse will receive 50% of the pension amount as a family pension, supporting the family after the subscriber’s passing.
- Affordable Contributions
Subscribers can contribute to the scheme through an ‘auto-debit’ facility from their savings or Jan-Dhan accounts. The contribution amount varies from Rs 55 to Rs 200 per month, depending on the age of entry into the scheme.
- Government Matching Contribution
The Central Government will provide an equal matching contribution to the subscriber’s pension account, making the scheme even more attractive and beneficial.
Benefits of PM-SYM
The Pradhan Mantri Shram Yogi Mandhan Yojana offers several advantages to both the subscribers and the nation as a whole. Beow, you can check details for Pradhan Mantri Shram Yogi Mandhan Yojana benefits:
- Financial Security
PM-SYM provides an essential financial safety net for unorganized workers during their old age when their earning capacity diminishes.
- Reducing Dependency
By ensuring a steady monthly income post-retirement, the scheme reduces workers’ dependency on their families or social welfare institutions.
- Inclusive Social Security
It extends social security benefits to a vast segment of the population previously excluded from formal pension systems.
- Promoting Savings
PM-SYM encourages a savings culture among unorganized workers, fostering financial discipline and responsible financial planning.
Success and Impact of PM-SYM
Since its inception in 2019, the Pradhan Mantri Shram Yogi Mandhan Yojana has achieved significant success and positively impacted the lives of millions of unorganized workers. PM-SYM has managed to reach out to a large number of eligible workers in the unorganized sector, providing them with a much-needed social security net. By linking the scheme to Aadhaar cards and Jan-Dhan accounts, PM-SYM has promoted financial inclusion and formal banking among unorganized workers.
The scheme has empowered workers with a sense of security and dignity, knowing that they will have a reliable pension during their retirement years. By reducing the burden on the public welfare system, PM-SYM contributes to the nation’s economic stability.
Challenges and the Way Forward
Despite its many successes, the Pradhan Mantri Shram Yogi Mandhan Yojana faces particular challenges. Ensuring that all eligible workers know the scheme and have access to enroll remains a challenge, especially in remote and rural areas. Work in the unorganized sector can be unpredictable, leading to irregular contributions and potential difficulties in maintaining consistent pension payments. As the number of beneficiaries increases, sustaining the scheme’s financial viability without burdening the government’s exchequer will require careful planning.
Overcoming barriers related to digital literacy is essential to enable unorganized workers to register and manage their pension accounts effectively. To address these challenges, the government must continue its efforts in raising awareness, improving accessibility, and streamlining processes for enrollment and contributions.
Procedure for Applying to PM-SYM
To enroll in the Pradhan Mantri Shram Yogi Mandhan Yojana, eligible unorganized workers have to follow some steps. Below, you can check shram yogi mandhan yojana online registration (प्रधानमंत्री श्रम योगी मानधन योजना रजिस्ट्रेशन):
- The worker needs to visit the nearest CSC and provide their Aadhaar Card and Savings Bank/ Jan-Dhan account number for self-certification.
- The worker will be registered for PM-SYM at the CSC, and the first subscription amount can be paid in cash.
- Subsequent contributions will be deducted through the ‘auto-debit’ facility from the worker’s bank account from the next month onwards.
- Workers can self-register for PM-SYM through the official PM-SYM web portal or mobile app using their Aadhaar number and bank account details.
Conclusion
The Pradhan Mantri Shram Yogi Mandhan Yojana is a commendable initiative by the Government of India to provide social security and financial stability to millions of unorganized workers. By offering a reliable pension system, the scheme ensures a respectable life for workers during their old age and reduces the burden on the welfare system. While the scheme has successfully reached many beneficiaries, continued efforts are required to address challenges and make it even more accessible and sustainable. PM-SYM reflects the government’s commitment to inclusive growth and the welfare of the working class, reinforcing the idea of a socially secure and economically vibrant India.
