Prime Minister Shram Yogi Mandhan Yojana: Get minimum Rs 3,000 monthly pension - here is how

Prime Minister Shram Yogi Mandhan Yojana (PM-SYM) was launched in 2019 to provide benefits to informal sector workers.

Prime Minister Shram Yogi Mandhan Yojana (PM-SYM), launched in 2019, assures at least Rs 3,000 as monthly pension after attaining the age of 60. This scheme provides benefits to informal sector workers.

Details related to scheme:

How to enroll: Eligible subscribers can enroll by visiting their nearest common service centres (CSCs). The list of common service centres is available in LIC of India, A savings bank account or Jan Dhan account and an Aadhaar card is needed to open this pension account. Enrollment services are provided at more than 3 lakh CSCs across the country.

How it works: The monthly contribution by a worker joining the scheme at the age of 18 is Rs 55, with matching contributions from the government. The contributions will rise with higher age. The contribution amount for the first month shall be paid in cash for which subscribers will be provided with a receipt. CSCs also issue cards having unique ID numbers to all those who register for the scheme.

Eligibility: A person who is earning Rs 15,000 a month or less and belongs to the age group of 18-40 years in the informal sector is eligible to enroll for the scheme. The subscriber should not be paying an income tax or be covered by any other schemes like the National Pension Scheme, the Employees' State Insurance Corp scheme or the Employees' Provident Fund scheme.

Exit provisions: If a subscriber exits the scheme within a period of less than 10 years, the beneficiary’s share of contribution only will be returned to him with savings bank interest rate.

If a subscriber exits after 10 years or more but before turning 60, the beneficiary’s share of contribution along with accumulated interest as actually earned by the fund or at the savings bank interest rate whichever is higher, will be returned.

Features: Each subscriber under this scheme will receive a minimum assured-pension of Rs 3,000 per month once they turn 60. If the subscriber dies before the age of 60, his or her spouse will get a chance to continue the scheme. PM-SYM is a voluntary and contributory pension scheme on a 50:50 basis where a prescribed age-specific contribution shall be made by the beneficiary and a matching contribution by the central government.