The Pradhan Mantri Shram Yogi Mandhan Yojana is a pension scheme of the Indian Government that targets people with a low income, primarily aiming to provide social security for the Unorganized Workers(UW) and to ensure old age protection.
Finance Minister Piyush Goyal first proposed the launch of this pension scheme, namely ‘Pradhan Mantri Shram-Yogi Mandhan’in short PMSYM, during his budget 2019 speech. This defined-benefit pension scheme was officially launched on the 15th of February, 2019. The Government Ministry that runs the method is called the Ministry of Labour and Employment.
What is the purpose of Pradhan Mantri Shram Yogi Mandhan? The primary purpose of the Pradhan Mantri Shram Yogi Mandhan Yojana is to provide social security and old age protection by giving pensions to the lower income group of unorganized workers like the head workers, cobblers, mid-day meal works, rag pickers, brick kiln workers, street vendors, construction workers, agricultural workers, handloom workers, washermen, home-based workers, domestic workers, landless labours, rickshaw pullers, bead workers, leather workers, and all other similar occupations.
Pradhan Mantri Shram Yogi Mandhan Scheme
The Pradhan Mantri Shram Yogi Mandhan scheme’s subscribers will benefit from the minimum pension of Rs 3000 per month after they reach 60 and will continue till they die.
To get the benefits of the Pradhan Mantri Shram Yogi Mandhan scheme, the subscribers have to provide the Government with a minimum contribution of Rs 55 for people age 18. This contribution amount will vary according to age. A person’s maximum contribution for a year should not exceed Rs 2400. So that if we cut this amount down, the maximum contribution one can make every month for having the benefits of this scheme comes down to Rs. 200.
Further, if a subscriber of this scheme dies, their spouse shall receive 50% of the pension amount received by the subscriber as a family pension. In such a case, the spouse must apply for the E-shram Yojana and get an E-shram Card to continue 50% of the Pradhan Mantri Shram Yogi Mandhan scheme subscriber’s pension.
One can also apply online for this card. Further, the spouse can continue the scheme on the subscriber’s behalf after death.
The works of the unorganized sector have an erratic nature, so the exit provisions of this scheme have been kept flexible. Therefore if a subscriber exits prematurely from this scheme, the amount that the individual has contributed to the date will be returned to them with interest, similar to the savings bank rate.
Who are eligible for the Pradhan Mantri Shram Yogi Mandhan scheme?
● You must fall within the age group of 18 to 40 years to apply for the Pradhan Mantri Shram Yogi Mandhanscheme.
● Your monthly income must be less than 15,000 rupees and not more than that. ● You should also not be a payer of income tax.
● One needs to keep in mind before applying for this scheme is that the individual should not be covered under schemes like the New Pension Scheme(NPS), Employee’s Provident Fund Organisation (EPFO), or the Employee’s State Insurance Corporation (ESIC) scheme.
Documents required for Pradhan Mantri Shram Yogi Mandhan scheme
● Your Aadhar Card
● Your active mobile Number
● Bank Passbook or Cheque Leave(book or copy of bank statement as evidence of bank account) where details of their Savings/Jan Dhan Bank Account and IFS Code are mentioned.
How can you apply for the Pradhan Mantri Shram Yogi Mandhan scheme?
● If interested in this scheme, you shall visit the nearest CSC (Common Service Centre).
● You should carry the documents mentioned above.
● At the Common Service Centre, the present VLE (Village Level Entrepreneur) will verify the applicant’s name, Date of Birth, and Aadhar card number with the UIDAI database for authentication.
● They will record your Mobile number, Bank account details, nominee, and other required details.
● For eligibility conditions/criteria self – certification will be done by the applicant.
● Payable monthly contributions will be calculated automatically by the system according to the applicant’s age.
● The First Subscription amount will be paid to the VLE in cash, and a receipt will be generated, which will be handed over to the applicant.
● Village Level Entrepreneur will print the Enrollment form cum auto Debit mandate, which the applicant will sign. This duly signed copy will be uploaded into the system.
● In the end, a print of Shram Yogi card will be given to the applicant where they can see their newly generated Unique Shram Yogi Pension Account Number.
● You will receive an SMS of activation of Shram Yogi Pension Account details. You will also regularly receive notification of auto debit from your account in your registered mobile number.
What are the benefits of the Pradhan Mantri Shram Yogi Mandhan scheme?
● If beneficiaries contribute till the age of 60, then, at the age of 60, they will receive an assured monthly pension of Rs.3000/- by DBT along with a family pension benefit
● Suppose a beneficiary dies during the receipt of the pension. In that case, his spouse will receive 50% of the pension amount as a family pension, which only applies to the beneficiary’s spouse.
● Before attaining the age of 60, if the beneficiary becomes permanently disabled due to some cause and unable to continue the monthly contribution but regularly contributed before becoming disabled. Then his nominee shall either choose to continue the scheme by paying the regular monthly contribution amount as applicable or receive a share t of contributed deposit by the such beneficiary with the internet at a savings bank or the interest earned by the pension fund, whichever is higher.
● If the beneficiary chooses to exist before a period of 10 years from his date of joining, He /she shall receive his share of the contribution with the interest rate given by the saving bank.
● If the beneficiary chose to exist after ten years but before the beneficiary’s age of 60, then he/she received his contributed amount along with the interest rate given by the savings bank at that time or interest earned by the pension fund.
Monthly Contribution to Pradhan Mantri Shram Yogi Mandhan scheme
| Entry Age | Superannuation | Member’s Central Govt’s Total Contribution |
| Age | Monthly (Rs.)Contribution (Rs.) Contribution (Rs.) | |
| 18 | 60 | 55.00 55.00 110.00 |
| 19 | 60 | 58.00 58.00 116.00 |
| 20 | 60 | 61.00 61.00 122.00 |
| 21 | 60 | 64.00 64.00 128.00 |
| 22 | 60 | 68.00 68.00 136.00 |
| 23 24 25 | 60 60 60 | 72.00 72.00 144.00 76.00 76.00 152.00 80.00 80.00 160.00 |
| 26 27 28 | 60 60 60 | 85.00 85.00 170.00 90.00 90.00 180.00 95.00 95.00 190.00 |
| 29 30 | 60 60 | 100.00 100.00 200.00 105.00 105.00 210.00 |
| 31 | 60 | 110.00 110.00 220.00 |
| 32 | 60 | 120.00 120.00 240.00 |
| 33 | 60 | 130.00 130.00 260.00 |
| 34 | 60 | 140.00 140.00 280.00 |
| 35 | 60 | 150.00 150.00 300.00 |
| 36 | 60 | 160.00 160.00 320.00 |
| 37 | 60 | 170.00 170.00 340.00 |
| 38 | 60 | 180.00 180.00 360.00 |
| 39 | 60 | 190.00 190.00 380.00 |
| 40 | 60 | 200.00 200.00 400.00 |
Conclusion
About 42 crores of unorganized workers are there in the country, approximately. The scheme was launched in 2019, and by the end of 2019, the project was joined by about 3.98 million people. The number climbed to about 4.47 million by the end of 2020.
But in 2021, only 1.1 million additional people joined this scheme. Since then, the system has slowly been noticed to have lost popularity compared to its initial days. The project has merits and demerits, such as the community of the people that the scheme targets are mostly uneducated or partially educated.
Therefore they lack financial knowledge, which eventually makes them concerned and keeps them questioning the benefits they will be getting. And many of them have such a tight daily budget that a small monthly amount of Rs 55 that needs to be contributed may be a bit tough to bear for them.
Keeping aside the volatility of its popularity, this scheme can be considered a good initiative for the poor community’s security taken by the Indian Government.