Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM): A Step Towards Social Security for Unorganized Workers
India, like many developing nations, has a significant portion of its workforce engaged in the unorganized sector. These workers, who often labor in construction, street vending, agriculture, domestic work, and other informal occupations, face numerous challenges, such as irregular income, lack of job security, and limited access to social security benefits. In order to address these concerns, the Indian government launched the Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme in 2019.
PM-SYM aims to provide a social security net for the unorganized sector workers, which covers those who earn less than ₹15,000 ($206) per month and fall within the age group of 18-40 years. The scheme seeks to ensure their financial protection during old age by offering a minimum assured pension of ₹3,000 ($41) per month after reaching the age of 60.
The program operates on a voluntary contribution basis, where the beneficiaries need to make monthly contributions ranging from ₹55 to ₹200, based on their age at the time of joining. The government also matches the pension contribution made by the workers. The accumulated funds are invested in a pension fund managed by the Life Insurance Corporation of India (LIC) to generate returns and provide a substantial corpus for the pensioners.
One of the noteworthy aspects of PM-SYM is its hassle-free enrollment process. Interested individuals can register for the scheme at various Common Service Centers (CSCs) operated by Village Level Entrepreneurs (VLEs) across the country. The scheme is also linked with the Aadhaar system, making the verification process seamless and reducing the chances of fraudulent claims.
To further ease the burden on the beneficiaries, the government has made provisions for deferred payment in cases where the enrolled person misses a few months of contribution due to various reasons. This flexibility ensures that the workers are not penalized for temporary financial difficulties.
PM-SYM also offers some incentives to encourage workers to join the program. For the first five years of the scheme, the government will bear the entire cost of the 50% contribution that should have been made by the workers. Additionally, spouses of the eligible scheme members can also avail of the benefits on a family-sharing basis by paying a separate contribution.
Since its launch, PM-SYM has witnessed significant enrollment across various states. The scheme has successfully provided social security coverage to millions of unorganized sector workers who otherwise would have been left vulnerable during their old age. The predictable monthly pension not only acts as a financial cushion for the beneficiaries and their families but also gives them a sense of dignity and social inclusion.
While PM-SYM goes a long way in addressing the social security needs of unorganized workers, there is still more work to be done. The government should focus on increasing awareness about the scheme, particularly in remote areas, and ensuring that eligible workers can easily participate. Moreover, improving the financial literacy of the beneficiaries is crucial to help them understand the importance of regular contributions and long-term savings.
Pradhan Mantri Shram Yogi Maan-Dhan is undoubtedly a significant step towards bringing socio-economic welfare to the unorganized sector workers. As the scheme progresses, it has the potential to become instrumental in uplifting the lives of millions, fostering resilience and prosperity within a vulnerable segment of society.