The Mega Pension Scheme, also known as the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), is a social security and pension scheme launched by the Government of India headed by Prime Minister Narendra Modi with an aim at providing financial security to unorganised sector workers during their old age.
Under this scheme, eligible workers between the ages of 18 and 40 years can voluntarily enrol and contribute towards their pension fund. Upon reaching the age of 60, the enrolled individuals will receive a monthly pension ranging from Rs. 3000 to Rs. 5000, depending on their monthly contribution and age at entry.
The Mega Pension Scheme targets workers engaged in various informal sectors such as street vendors, domestic workers, rickshaw pullers, construction workers, agricultural labourers, and others who often lack access to formal social security benefits.
The scheme is implemented through the Life Insurance Corporation of India (LIC) and offers attractive features such as easy enrolment, minimal documentation, and affordable contributions starting from as low as Rs. 55 per month. Additionally, the government provides matching contributions towards the pension fund, thereby enhancing the retirement benefits for eligible workers.
The Mega Pension Scheme aims to alleviate poverty among elderly workers, promote financial inclusion, and ensure dignified living conditions for them post-retirement. It reflects the government’s commitment to social welfare and inclusive development by extending social security coverage to vulnerable sections of society.
Overall, the Mega Pension Scheme plays a crucial role in promoting social and economic empowerment among unorganised sector workers, enabling them to lead a secure and dignified life during their old age.
The scheme is for unorganised sector workers with monthly incomes up to Rs. 15,000. This announcement was made during the presentation of the Interim Budget 2019-20 by the Union Minister for Finance, Corporate Affairs, Railways, and Coal, Shri Piyush Goyal.
Highlighting the significant contribution of the unorganised sector to India’s GDP, Shri Goyal emphasized the need for comprehensive social security coverage for these workers, including provisions for their old age. The proposed pension scheme aims to address this need by providing financial security to workers engaged in various occupations such as street vendors, rickshaw pullers, construction workers, agricultural labourers, and others.
Under the ‘Pradhan Mantri Shram-Yogi Maandhan’ scheme, eligible workers will receive an assured monthly pension of Rs. 3,000 starting from the age of 60 years. The pension amount will be provided in exchange for small, affordable monthly contributions made during the workers’ working age. For instance, a worker joining the scheme at the age of 29 years will only need to contribute Rs. 100 per month until the age of 60 years, while a worker joining at 18 years will contribute as little as Rs. 55 per month.
To ensure the success and sustainability of the scheme, the government will deposit an equal matching share in the pension account of the worker every month. It is estimated that approximately 10 crore laborers and workers in the unorganised sector will benefit from this scheme within the next five years, making it one of the largest pension schemes globally.
To kickstart the implementation of the scheme, an initial allocation of Rs. 500 crore has been made, with additional funds to be provided as needed. The government aims to roll out the scheme from the current year, signalling its commitment to improving the social security and welfare of unorganised sector workers across the country.
Government of India has introduced a pension scheme for unorganised workers namely Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) to ensure old age protection for Unorganised Workers.
The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless labourer’s, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers and similar other occupations whose monthly income is Rs 15,000/ per month or less and belong to the entry age group of 18-40 years. They should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO). Further, he/she should not be an income tax payer.
2. Features of PM-SYM: It is a voluntary and contributory pension scheme, under which the subscriber would receive the following benefits : (i) Minimum Assured Pension: Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years. (ii) Family Pension: During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse. (iii) If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
3.The Contribution by the Subscriber: subscriber’s contributions to PM-SYM shall be made through ‘auto-debit’ facility from his/ her savings bank account/ Jan- Dhan account. The subscriber is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years.
This mega pension scheme aims to provide financial stability and security to millions of workers engaged in various informal occupations. Under the visionary leadership of Prime Minister Narendra Modi, the PMSYM Yojana reflects the government’s commitment to inclusive growth and welfare of all sections of society.
Overview of the PMSYM Yojana: The Pradhan Mantri Shram-Yogi Maandhan Yojana is a comprehensive pension scheme designed specifically for unorganised sector workers with monthly incomes up to Rs. 15,000. Launched as part of the government’s efforts to ensure social security coverage for all, the scheme offers an assured monthly pension of Rs. 3,000 to eligible beneficiaries from the age of 60 years onwards.
Key Features and Benefits:
- Affordable Contribution: Workers joining the scheme are required to make small, affordable monthly contributions during their working years. The contribution amount varies based on the age of the worker at the time of enrollment, ensuring accessibility for individuals across different age groups and income levels.
- Matching Contribution by Government: To incentivize participation and enhance the pension corpus, the government will deposit an equal matching share in the pension account of the worker every month. This dual contribution mechanism helps bolster the financial security of beneficiaries during their retirement years.
- Wide Coverage: The PMSYM Yojana is expected to benefit approximately 10 crore labourers and workers in the unorganised sector within the next five years. By extending pension coverage to a significant portion of the informal workforce, the scheme aims to address the socio-economic vulnerabilities faced by marginalised communities.
- Financial Security: The provision of an assured monthly pension of Rs. 3,000 ensures a basic level of financial security for elderly workers who may not have access to formal retirement benefits or savings. This pension amount can serve as a vital source of income for meeting essential expenses and healthcare needs during old age.
- Ease of Enrollment: The enrolment process for the PMSYM Yojana is designed to be simple and hassle-free, enabling workers to register for the scheme through designated enrolment centers or online platforms. By streamlining the enrollment process, the government aims to maximise the outreach of the scheme and ensure widespread participation.
Prime Minister Narendra Modi’s Vision: Prime Minister Narendra Modi has been a staunch advocate for social security reforms aimed at uplifting the lives of marginalised sections of society, including unorganised sector workers. His vision for inclusive growth and development encompasses initiatives that prioritise the welfare and well-being of every citizen, irrespective of their socio-economic background.
Under Prime Minister Modi’s leadership, the PMSYM Yojana has emerged as a flagship program aimed at empowering unorganised sector workers and providing them with a dignified and secure future. By leveraging innovative approaches and technology-driven solutions, the government is striving to ensure that the benefits of social security reach the last mile and make a tangible difference in the lives of millions of workers across the country.