Pradhan Mantri Shram Yogi Maandhan (PMSYM) is a central government scheme that is for old age protection and social security of Unorganized Workers (UW).
Contribution by the UW Subscriber: Via ‘auto-debit’ facility from their savings bank account or Jan- Dhan account from the date of joining PMSYM till the age of 60 years. The Central Government will also give an equal matching contribution in their pension account.
There are approximately 42 crores, such as Unorganized workers, in the country. Mostly Unorganized Workers (UW) are engaged as home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washermen, rickshaw pullers, landless laborers, own-account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers or workers in similar other occupations.
The Pradhan Mantri Shram Yogi Maandhan Yojana is a voluntary and contributory pension scheme under which the subscriber would receive a minimum assured pension of ₹ 3000 per month after the age of 60 years and if the subscriber dies, then the spouse of the beneficiary shall be entitled to receive 50% of the pension as a family pension.
Note: Family pension is applicable only to a spouse.
Who is applicable to the scheme?
- The scheme is a tribute to the workers in the unorganized sectors who contribute around 50% of the country’s GDP (Gross Domestic Product).
- The applicants between the age group of 18 to 40 years will have to make monthly contributions between ₹ 55 to ₹ 200 per month till they attain the age of 60.
- When the applicant attains the age of 60 years, then he/she can claim the pension amount. And every month a fixed pension amount gets deposited in the pension account of the respective individual.
- For Unorganized Worker (UW)
- Entry age between 18 to 40 years
- Monthly Income ₹ 15000 or below
Should not be
He/ She should possess
- Aadhaar card
- Savings Bank Account / Jan Dhan account number with IFSC
1. Benefits to the family on the death of an eligible subscriber
If the subscriber dies, then the spouse of the eligible beneficiary shall be entitled to receive 50% of the pension as a family pension, and that family pension shall be applicable only to the spouse.
2. Benefits on disablement
In some circumstances before attaining the age of 60 years if an eligible subscriber has given regular contributions in the Scheme, and become permanently disabled due to any cause, and is unable to continue to contribute under this Scheme, then in that cases his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by such subscriber, with the interest as earned by the Pension Fund or the interest at the savings bank, whichever is higher.
3. Benefits on Leaving the Pension Scheme
- If an eligible subscriber exits from the scheme within the period of less than 10 years from the date of joining the scheme, in that case, the shares of contribution by him will be returned to him with the rate of interest on the saving bank account.
- If an eligible subscriber exits after the completion of 10 years, or more from the date of joining the Scheme by him but before his age of 60 years, then, in that case, his share of contribution shall be returned to him only along with accumulated interest as earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
- If an eligible subscriber has given regular contributions in the Scheme and died due to any cause, then in that case his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such subscriber along with accumulated interest, as actually earned by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
- After the death of the eligible subscriber, and his or her spouse, then in that case the corpus shall be credited back to the fund.
How a subscriber can apply for the Scheme
Step 1: Interested eligible person shall visit the nearest CSC (Common Service Centre). Therefore, first of all, you need to locate your nearest CSC.
Step 2: Following are the requirements for the enrolment process:
- Aadhaar Card.
- Savings/Jan Dhan Bank Account details along with IFSC Code (Bank Passbook or Cheque Leave/book or copy of bank statement as evidence of bank account).
- Initial contribution amount in cash for enrolment under the Pradhan Mantri Shram Yogi Maandhan Scheme and that amount will be made to the VLE (Village Level Entrepreneur).
Step 3: Village Level Entrepreneur (VLE) present at the CSC will key-in aadhar number, name of subscriber, and date of birth as printed on aadhar card, and the same will be verified with UIDAI database.
Step 4: The VLE will complete the online registration by filling up the details such as Bank Account details, Mobile Number, Email Address, Spouse (if any), and Nominee details will be captured.
Step 5: Self-certification for eligibility conditions will be done.
Step 6: The system will auto-calculate the monthly contribution payable according to the age of the Eligible Subscriber.
Step 7: Subscriber will pay the 1st subscription amount in cash to the VLE, who will generate a receipt to be handed over to the subscriber.
Step 8: Enrolment cum Auto Debit mandate form will be printed and will be further signed by the subscriber. Then the VLE will scan the signed enrolment cum auto-debit mandate, and upload it into the system.
Step 9: Thereafter, a unique Shram Yogi Pension Account Number (SPAN) will be generated and Shram Yogi Card will be printed at CSC.
After the completion of the process, the eligible subscriber will be having Shram Yogi Card with him, signed copy of the enrolment form for his record.
In also addition, the subscriber will also receive regular SMS on activation of auto-debit, Shram Yogi Pension Account details.