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What is the PM Shram Yogi Maan Dhan Yojna?

The PM Shram Yogi Maan Dhan Yojna: A Social Security Scheme for the Unorganized Sector

In an effort to provide social security to the working class in the unorganized sector, the Government of India has introduced the Pradhan Mantri Shram Yogi Maan Dhan Yojna, also known as the PM-SYM. This new scheme aims to benefit workers who traditionally do not have access to formal pension provisions, ensuring financial stability and a predictable income after retirement.

The unorganized sector plays a crucial role in India’s economy, employing millions of people in a variety of informal occupations. However, a significant challenge faced by this sector is the lack of social security benefits, including pension schemes. Many workers retire without a sustainable source of income, leaving them vulnerable to economic hardship and poverty in their later years. The PM-SYM strives to address this significant issue and provide a safety net for these workers.

Under the PM-SYM, eligible workers can opt to receive a guaranteed monthly pension after attaining the age of 60. To be eligible for the scheme, the individual must be an unorganized sector worker with income below a certain threshold. Additionally, they should not be engaged in any formal employment which provides benefits like EPFO/NPS/ESIC. Furthermore, the age limit for joining the scheme is between 18 and 40 years.

The enrolled workers must contribute a specific amount per month to avail themselves of the benefits of the scheme. The contribution amount is income-based and varies according to the age of the subscriber. The government matches the same amount as contributed by the worker, thus effectively doubling the pension contribution. The monthly contribution can be as low as Rs. 55 for workers joining at the age of 18 and gradually increasing to Rs. 200 for those joining the scheme at age 40.

Upon reaching the age of 60, the workers enrolled in PM-SYM can start receiving the pension amount through their bank accounts via direct benefit transfer (DBT) on a monthly basis. In the unfortunate event of the subscriber’s death, the spouse can continue to receive the pension amount until their demise. After the demise of both the subscriber and the spouse, the accumulated contributions will be refunded to the nominee of the subscriber. Moreover, the scheme includes a provision for premature exit, in which the subscriber can choose to withdraw their accumulated funds along with interest.

To ensure efficient implementation and widespread awareness of the scheme, the government has partnered with the Life Insurance Corporation of India (LIC) as the nodal agency. LIC will be responsible for the registration of subscribers, as well as the overall administration and management of the scheme. The simplified registration process allows workers to enroll themselves at their nearest Common Services Centers (CSC), which are easily accessible across the country.

The introduction of the PM-SYM marks a significant step towards providing social security to millions of workers in the unorganized sector, ultimately fostering financial inclusion and economic stability. By creating a robust pension system, the government aims to mitigate the hardships faced by the vulnerable sections of society in their post-retirement years. With its affordable contribution rates, government matching, and convenient registration process, the scheme plays a crucial role in supporting and uplifting India’s working class in the informal sector, bringing them under a much-needed social security umbrella.

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