“PM-SYM will assure monthly pension for the enrolled unorganized sector workers during their old age. It is for the first time since independence that such a scheme is envisaged for the crores of workers engaged in the informal sector.”
–PM Narendra Modi
Pradhan Mantri Shram Yogi Maandhan (PM-SYM) is a voluntary and contributory pension scheme launched by the Government of India to provide social security to unorganised workers. This scheme ensures a minimum monthly pension of ₹3,000 after the age of 60 for workers who belong to the unorganised sector and have a monthly income of up to ₹15,000. The scheme is a tribute to the workers in the unorganised sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP). Unorganised workers are mostly 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. As per the e-Shram portal, there are over 30.51 crore unorganised workers registered as on 31 December 2024.
PM-SYM was introduced in the Interim Budget 2019. The scheme is administered by the Ministry of Labour and Employment in collaboration with Life Insurance Corporation of India (LIC) and Common Service Centres e-Governance Services India Limited (CSC SPV) for seamless implementation. LIC is the Pension Fund Manager and is responsible for pension payouts. The scheme is a part of the government’s broader social security initiatives and aligns with the vision of universal pension coverage for workers in the unorganised sector.
Key Features of PM-SYM
The Pradhan Mantri Shram Yogi Maandhan scheme provides numerous benefits, ensuring financial security in old age for unorganised sector workers. It assures a minimum pension of ₹3,000 per month after 60 years of age. The Government of India matches the worker’s contribution on a 1:1 basis. The scheme is voluntary and contributory, allowing workers to contribute based on their affordability and requirement. In the event of the beneficiary’s demise, the spouse receives 50% of the pension amount as a family pension. Family pension is applicable only to the spouse. Participants can exit the scheme under specified conditions, and eligible workers can register at Common Service Centres (CSCs) or through the Maandhan portal. The scheme is administered by LIC, ensuring financial stability and credibility.
Eligibility Criteria
To enroll in PM-SYM, individuals must be between 18 to 40 years of age and have a monthly income of ₹15,000 or less. The scheme covers workers engaged in professions such as street vendors, rag pickers, rickshaw pullers, construction workers, daily wage labourers, agricultural workers, beedi workers, domestic workers, weavers, artisans, fishermen, and leather workers. Individuals who are covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension Scheme (NPS), as well as those who are income taxpayers or receiving benefits from any other government pension scheme, are not eligible. Required documents for enrolment include an Aadhaar Card, savings bank account or Jan Dhan account details with IFSC, and a mobile number. A detailed list of professions covered under this scheme is available at https://labour.gov.in/list-professions-occupations-covered.
Contribution Structure
The contribution amount varies based on the age at the time of enrolment. For example, an 18-year-old worker contributes ₹55 per month, with the government contributing an equal amount. A 20-year-old contributes ₹65 per month, while a 25-year-old contributes ₹80 per month. Those enrolling at 30 years of age contribute ₹105 per month, whereas 35-year-olds contribute ₹150 per month. The maximum contribution of ₹200 per month applies to individuals enrolling at 40 years of age. Upon reaching 60 years, beneficiaries start receiving a fixed pension of ₹3,000 per month for their lifetime.
Enrolment Process
Enrolment in PM-SYM is facilitated through Common Service Centres (CSCs) across India. Workers need to visit a CSC with Aadhaar and a savings bank account. Biometric authentication using Aadhaar is required, followed by filling out an online registration form. The first subscription is to be paid in cash, after which an auto-debit facility is set up from the bank account. Upon successful enrolment, the worker receives a PM-SYM card. Alternatively, eligible workers can enroll through the Maandhan portal at https://maandhan.in/. Labour offices of state and central governments, LIC branch offices, ESIC/EPFO offices act as facilitation centres providing full information to unorganised workers. Additionally, a customer care number (1800 2676 888) is available 24×7 for assistance.
Implementation and Current Status
The government has taken several steps to ensure that the benefits of the scheme reach unorganised sector workers. Regular review meetings with States and UTs, discussions with state Common Services Centre (CSC) heads, and the launch of new features such as Voluntary Exit, Revival Module, Claim Status, and Account Statement have been instrumental. The revival period for dormant accounts has been extended from one year to three years. PM-SYM and e-Shram have been integrated for seamless implementation. SMS campaigns have been launched to create awareness, and communications with Chief Secretaries of States and UTs have been undertaken to boost enrolment. The ‘Donate-a-Pension’ module has been introduced to encourage employers to pay the premium of their staff under PM-SYM and increase enrolment. The government has also collaborated with the Department of Financial Services, Pension Fund Regulatory and Development Authority, and National Institute of Public Finance and Policy to expand the outreach of the scheme.
Exit and Withdrawal Provisions
Recognizing the erratic nature of employment in the unorganised sector, the scheme offers flexible exit provisions. If a worker exits before 10 years, the contributed amount is refunded with savings bank interest. If the exit occurs after 10 years but before 60 years, the beneficiary receives their share of contribution along with accumulated interest as earned by the fund or at the savings bank interest rate, whichever is higher. In case of death before 60 years or permanent disability caused by an accident, the spouse can either continue the scheme or withdraw the contributed amount with interest. After the subscriber’s death post-60 years, the spouse receives 50% of the pension as a family pension. Upon the death of both subscriber and spouse, the entire corpus is credited back to the fund. If a subscriber defaults on payments, they can regularize contributions by clearing outstanding dues along with penalty charges, if applicable.
PM-SYM is a landmark initiative providing financial security to millions of unorganised workers. By ensuring a monthly pension of ₹3,000, it helps workers lead a dignified life post-retirement. With a significant number of enrolments and ongoing promotional efforts, PM-SYM aims to provide universal pension coverage, strengthening India’s social security framework.
