Pradhan Mantri Shram-Yogi Maandhan (PM-SYM)

The Finance Minister announced a new Scheme called the Pradhan Mantri Shram-Yogi Maandhan in the recent budget. The initiative is aimed at providing assistance to workers in the unorganised sector. This offering, which in some ways also ties to the PMRPY, is aimed at uplifting and providing better means for those to whom benefits are few. The main objective of this scheme is to ensure old age protection for these workers. Here is what the scheme intends.

CHARACTERISTICS

• The Scheme has been introduced under Unorganised Workers’ Social Security Act (UWSS) Act, under Section 3(1)(C)
• This scheme is available to unorganised working sector which includes street vendors, rickshaw drivers and pullers, domestic workers, rag pickers, beedi workers, washermen, leather workers, handloom workers, agricultural workers etc
• It is a voluntary Scheme
• It is applicable to those who have a monthly earning of below Rs. 15,000
• Those between the ages of 18 and 40 are eligible
•  LIC of India has been chosen as implementing agency
•  Facilitation desks/centres/counters to be set up by all district offices to ensure maximum reach and optimal implementation
• Aadhar card and Savings bank or Jan Dhan number to be provided during registration
• Consent forms and paperwork to be submitted at respective bank for remittances
•  Principal Secretaries and Labour Commissioners to mobilise movement and use social networks and NGO’s to encourage maximum participation
• LIC branches and agents, field offices of EPFO and ESIC offices, as well as district labour offices will be centres for enrollment of workers

BENEFITS

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• A sum between Rs. 55 and Rs. 200 to be paid by worker as monthly subscription. The amount will be fixed based on age of entrant
• An equal sum will be paid toward the same account, funded completely by the government of India
• Upon attaining the age of 60, the member will receive an assured monthly pension of Rs. 3000
• Upon death of the member, the surviving will continue to receive 50% of the benefit
• If member dies before attaining the age of 60, the spouse is eligible to join the same scheme and continue paying toward the fund and avail subsequent benefit
• After demise of member and spouse, the corpus will be diverted into the fund

A document detailing the Scheme along with eligibility and benefit clauses, as well as age-wise contribution slabs can be found at http://comply4hr.com/noti/2016/EPFS2019Feb5.pdf