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Pradhan Mantri Shram Yogi Maandhan (PM-SYM) is a government-backed pension scheme launched in 2019 to provide financial security to unorganized sector workers in India. Given the significance of social security schemes in governance, welfare, and economic development, understanding PM-SYM is crucial for UPSC aspirants preparing for Prelims, Mains, and Interview stages. This eBook delves deep into the scheme’s objectives, features, benefits, eligibility, challenges, and comparisons with other pension schemes.
Unorganized Sector in India
India’s economy is characterized by a large unorganized workforce. Over 90% of the workforce, comprising street vendors, rickshaw pullers, agricultural workers, construction laborers, and domestic workers, falls under the unorganized sector.
These workers often lack social security benefits like pensions, health insurance, and provident funds, leaving them vulnerable in old age.
Need for a Pension Scheme
With rising life expectancy and informal employment, the government recognized the necessity of financial security for elderly unorganized workers.
PM-SYM was introduced as a voluntary and contributory pension scheme to ensure a minimum pension of ₹3,000 per month after the age of 60 for low-income workers.
The primary objectives of the scheme are:
dependency on government welfare programs for senior citizens.
Eligibility Criteria
Age Group: 18 to 40 years.
Monthly Income: Less than ₹15,000 per month.
Must be engaged in the unorganized sector (not covered under EPFO, ESIC, or NPS).
Must possess an Aadhaar card and Jan Dhan or savings bank account.
Contribution Structure
PM-SYM is a 50:50 contributory scheme.
The subscriber contributes ₹55 to ₹200 per month, depending on the entry age.
The government matches the contribution equally.
Age of Entry | Monthly Contribution | Government Contribution |
|---|---|---|
18 years | ₹55 | ₹55 |
25 years | ₹80 | ₹80 |
40 years | ₹200 | ₹200 |
Pension Benefits
After reaching 60 years of age, the subscriber receives a monthly pension of ₹3,000.
If the subscriber dies, the spouse receives 50% of the pension as a family pension.
Exit Provisions
Before 10 years of subscription: The subscriber gets a refund with savings bank interest.
After 10 years but before 60 years: The subscriber gets accumulated contributions with interest.
In case of death: The spouse can continue or exit with the refund.
Enrollment Process
Enrollment is done through Common Service Centres (CSCs) across India.
Biometric authentication via Aadhaar is mandatory.
No requirement for an intermediary agent or commission.
| Feature | PM-SYM | Atal Pension Yojana (APY) | National Pension System (NPS) |
|---|
| Target Group | Unorganized Sector | Informal and Organized Workers | Salaried Employees & Self-Employed |
| Contribution | Fixed (₹55-₹200) | Fixed (₹42-₹210) | Variable |
| Pension Amount | ₹3,000 | ₹1,000-₹5,000 | Market-Linked |
| Government Contribution | 50% Match | Yes (for BPL beneficiaries) | No |
| Flexibility | Fixed contribution | Fixed contribution | High flexibility |
Relevance in Prelims
Static GK: Questions on pension schemes, unorganized sector policies.
Current Affairs: Government schemes, social security measures.
Relevance in Mains (GS Paper 2 & 3)
GS Paper 2 (Governance & Welfare Schemes)
Issues faced by unorganized workers.
Impact of pension schemes on financial security.
GS Paper 3 (Indian Economy & Social Justice)
Role of social security in economic development.
Comparison with global pension systems.
Relevance in Interview
Understanding policy implementation challenges.
Evaluating effectiveness of welfare schemes.
Discussing potential reforms and improvements.
Low Awareness and Enrollment
Many unorganized workers are unaware of the scheme due to lack of financial literacy.
Enrollment through CSCs poses challenges in rural areas.
Affordability of Contributions
Even ₹55-₹200 per month can be a burden for low-income workers.
Digital and Infrastructure Barriers
The need for Aadhaar-based authentication excludes some workers without proper documentation.
Sustainability Issues
Given India’s large informal workforce, long-term funding remains a challenge for the government.
Increasing Awareness
Conducting campaigns and workshops in rural areas.
Using digital platforms and mobile apps for easy access.
Flexible Contribution Options
Allowing workers to contribute based on seasonal earnings.
Strengthening Implementation
More Common Service Centres (CSCs) in remote areas.
Simplifying documentation requirements.
Integration with Other Schemes
Linking with Ayushman Bharat for health security.
Merging with NPS Lite for better coverage.
PM-SYM is a significant step towards social security for India’s unorganized workforce. While it addresses key concerns of financial security in old age, challenges like low awareness, affordability, and digital barriers must be resolved for better implementation. For UPSC aspirants, analyzing welfare schemes critically and suggesting reforms is essential for Mains and Interview preparation.
By understanding PM-SYM’s role in India’s social security framework, aspirants can develop a well-rounded perspective on governance and economic development.
Maximize the benefits of mock tests for IAS and KAS preparation with guidance from Amoghavarsha IAS Academy . For more details, visit https://amoghavarshaiaskas.in/.
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