“Brief on Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM): A Pension Scheme for Unorganised Workers.”
I. INTRODUCTION:
The Pradhan Mantri Shram Yogi Maan-dhan (PMSYM)[1] has been presented by the ruling party in its last budget before the General Elections 2019. It is a voluntary scheme. This scheme is designed for unorganised workers. The Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) will come into force as on 15th of Feb 2019[2] and it is to be implemented by the Ministry of Labour and Employment.
II. WHO ARE UNORGANISED WORKERS?
Under the said Scheme, the following persons are recognised as unorganised workers namely:
- Home Based Workers.
- Street Vendors.
- Mid-Day Meal Workers.
- Head Loaders.
- Brick Kiln Workers.
- Cobblers.
- Rag Pickers.
- Domestic Workers.
- Washer Men.
- Rickshaw Pullers.
- Landless Labourers.
- Own Account Workers.
- Agricultural Workers.
- Construction Workers.
- Beedi Workers.
- Handloom Workers.
- Leather Workers.
- Audio- Visual Workers.
III. ELIGIBILITY CRITERIA:
- The monthly income of such unorganised workers must be 15000 rupees per month or less than 15000 rupees as the case may be; or
- Such workers must be between the age group of 18 to 40 years; or
- Such workers must not be registered under the New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO); or
- The worker must not be a Tax Payer.
IV. MINIMUM GUARANTEED PENSION:
Any unorganised worker who registers for this scheme will get a fixed amount of 3000 rupees per month after attaining the age of 60 years.
V. FAMILY PENSION BENEFIT TO THE SUBSCRIBER’S SPOUSE:
The family pension under this scheme is applicable to spouse only, but not to the other members of the family (for example, if a husband dies then only his wife is entitled to family pension as per the rules of this scheme). If a worker who has enrolled under this scheme dies during the receipt of pension due to any reason whatsoever then in that case his/her spouse is entitled to receive 50% of the pension.
VI. CONTRIBUTION TO BE MADE BY THE UNORGANISED WORKERS ON MONTHLY BASIS:
| ENTRY AGE | SUPERANNUATION AGE | MEMBER’S MONTHLY CONTRIBUTION (RS) | CENTRAL GOVT’S MONTHLY CONTRIBUTION (RS) | TOTAL MONTHLY CONTRIBUTION (RS) |
| 18 | 60 | 55 | 55 | 110 |
| 19 | 60 | 58 | 58 | 116 |
| 20 | 60 | 61 | 61 | 122 |
| 21 | 60 | 64 | 64 | 128 |
| 22 | 60 | 68 | 68 | 136 |
| 23 | 60 | 72 | 72 | 144 |
| 24 | 60 | 76 | 76 | 152 |
| 25 | 60 | 80 | 80 | 160 |
| 26 | 60 | 85 | 85 | 170 |
| 27 | 60 | 90 | 90 | 180 |
| 28 | 60 | 95 | 95 | 190 |
| 29 | 60 | 100 | 100 | 200 |
| 30 | 60 | 105 | 105 | 210 |
| 31 | 60 | 110 | 110 | 220 |
| 32 | 60 | 120 | 120 | 240 |
| 33 | 60 | 130 | 130 | 260 |
| 34 | 60 | 140 | 140 | 280 |
| 35 | 60 | 150 | 150 | 300 |
| 36 | 60 | 160 | 160 | 320 |
| 37 | 60 | 170 | 170 | 340 |
| 38 | 60 | 180 | 180 | 360 |
| 39 | 60 | 190 | 190 | 380 |
| 40 | 60 | 200 | 200 | 400 |
VII. HOW TO APPLY FOR IT?
- A person can enrol for this scheme by visiting the nearest Common Service Center (also known as Lokmitra Kendra).
VIII. DOCUMENTS AND OTHER THINGS REQUIRED FOR REGISTRATION:
- An active mobile number to receive O.T.P and other information; or
- A saving bank account or Jan-Dhan Account Number; or
- An Aadhaar Number; or
IX. EXIT & WITHDRAWAL:
A person can exit the scheme anytime as per the exit provisions provided in the scheme.
X. OTHER PROVISIONS:
If the scheme-holder has not paid the contribution regularly then, in that case, the government will provide to the scheme-holder with another chance to continue the scheme on regular basis by clearing the previous dues.
If the subscriber has any doubt relating to the scheme then he/she can contact on the customer care number.
XI. CONCLUSION:
This scheme is a good move by the Government. But, however, it is not the only scheme introduced by the Government for the welfare of unorganised workers. There are a few other schemes such as Atal Pension Yojana etc.
The main problem lies with the implementation of these schemes. There are a few drawbacks in The Pradhan Mantri Shram Yogi Maan-dhan (PMSYM).
But, however, the biggest drawback of this scheme is that there is no provision relating to the nominee as was in the case of Atal Pension Yojana. As per the scheme, a spouse of the scheme-holder is entitled to the family pension benefits in case of death of the scheme-holder, but this family pension benefit is not available to the other family members of the scheme-holder.
But, what if there is no spouse of the scheme-holder? But, what if the spouse of the scheme-holder dies before the scheme-holder? In these circumstances, the only person left to avail the benefit of this scheme is the scheme-holder itself.
Even one of the exit provisions of this scheme reads as follow:
“After the death of subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.[3]”
As per the scheme the Fund Management is to be handled by the Life Insurance Corporation (LIC) and CSC eGovernance Services India Limited (CSC SPV). LIC will be the Pension Fund Manager and responsible for Pension payout. The amount collected under PM-SYM pension scheme shall be invested as per the investment pattern specified by the Government of India[4].
It means that after the death of scheme-holder as well as of the spouse of the scheme-holder the entire amount or corpus shall be transferred to the fund, it shall not be paid to the family members of the scheme-holder as was in the case of Atal Pension Yojana. In Atal Pension Yojana, after the death of scheme-holder as well as of the spouse of the scheme-holder the entire amount or corpus could be transferred to the nominee nominated by the scheme-holder.
[1] The Scheme is available at https://labour.gov.in/pm-sym.
[2] Pradhan Mantri Shram Yogi Maan-Dhan (PM- SYM) To Be Implemented from February 15th, official press release available at http://pib.nic.in/PressReleseDetail.aspx?PRID=1564576.
[3] supra note 1.
[4] Ibid.
