Scheme for Unorganized workers- Pradhan Mantri Shram Yogi Maan-Dhan(PM-SYM) GST


Budget 2019: For the unorganized sector, Rs 3,000 monthly pension.

Pradhan Mantri Shram Yogi Maan-Dhan(PM-SYM) is a voluntary contributory pension scheme meant for old age protection and social security of unorganised workers who are mostly engaged for home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washermen, rickshaw pullers, landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers and similar other occupations.

Piyush Goyal said the Pradhan Mantri Shram-Yogi Maandhan — the pension scheme for unorganized workers earning up to Rs 15,000 per month, including construction labourers, domestic workers, rickshaw-pullers, agricultural labourers etc — is expected to benefit 10 crore workers in the next five years, “making it one of the largest pension schemes of the world”.

Under the scheme, the Union government will match the nominal monthly deposit made by the workers. Goyal explained that a worker joining the scheme at the age of 29 years will have to contribute Rs 100 per month until he is 60 years old; if he joins at 18 years, the monthly contribution will be just Rs 55. The government will deposit a matching amount in the pension account of the worker every month. The worker will then get an assured monthly pension of Rs 3,000 after reaching the age of 60 years. “Half of India’s GDP comes from the sweat and toil of 42 crore workers in the unorganized sector… We must provide them comprehensive social security coverage for their old age,” said Goyal, announcing an initial allocation of Rs 500 crore.

The scheme also provides that if a subscriber has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the scheme subsequently by payment of regular contribution. Children of the subscriber cannot be named as nominees, though. The spouse can also exit the scheme by receiving the share of contribution paid by the deceased subscriber along with accumulated interest.

In case of permanent disablement of a subscriber, his or her spouse will be entitled to continue with the scheme or exit by receiving the share of contribution, with interest. In case of death of a pensioner, his or her spouse shall be only entitled to receive 50 percentconstruction-workers of the pension.

Eligibility Criteria

  • Should be an Unorganised Worker(UW)
  • Entry age between 18 and 40 years
  • Monthly income Rs. 15000 or below

Should not be

  • Engaged in the organized sector(Membership of EPF/NPS/ESIC)
  • An income tax- payer

He/She should possess

  • Aadhar Card
  • Savings Bank Account/ Jan Dhan Account number with IFSC

Facilitation Centres :

  • All the Labour offices of State and Central Government, all the branch offices of LIC, the offices of ESIC/EPFO will act as Facilitation Centres to give full information to the Unorganised Workers (UW) about the scheme, its benefits and the procedure to be followed, at their facilitation desks/help desks.

    Default in payment

    If a subscriber makes a default in the payment of any contribution then, he/she will be allowed to regularise the contribution by paying entire outstanding dues, along with interest of the rate as determined by the government. Fund for the scheme and pension payout will be managed by Life Insurance Corporation of India (LIC).

Enrolment agencies :

  • The enrolment will be carried out by all the Common Services Centres in the country. Locations of these can be known from the link

We hope that workers working with you will benefit from this. It is requested that the details and benefits of this scheme may be communicated to them.

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