• The workers in the unorganised sectors contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).

• The unorganised workers are mostly engaged as 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, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers and similar other occupations.

• As per the e-Shram portal, there are over 30.51 crore unorganised workers registered, as on December 31, 2024.

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme

• In the Union Budget 2019-20, the government proposed to launch ‘Pradhan Mantri Shram Yogi Maan-dhan’ for the unorganised sector workers with monthly income up to Rs 15,000.

• The enrolment under the scheme started in February 2019 and was formally launched by  on March 5, 2019.

• It is a voluntary and contributory pension scheme.

• It is available to all unorganised workers in the age group of 18 years to 40 years with monthly income not exceeding Rs 15,000. 

• The scheme provides numerous benefits, ensuring financial security in old age for unorganised sector workers.

• The scheme is administered by the Ministry of Labour and Employment in collaboration with Life Insurance Corporation of India (LIC) and Common Service Centres e-Governance Services India Limited (CSC SPV) for seamless implementation. 

• LIC is the Pension Fund Manager and responsible for pension pay out. 

• The scheme is a part of the government’s broader social security initiatives and aligns with the vision of universal pension coverage for workers in the unorganised sector.

Features of the scheme:

• Minimum Assured Pension: Rs 3,000 per month after 60 years of age.

• Government Contribution: The government matches the worker’s contribution on a 1:1 basis.

• Voluntary and Contributory: The scheme is voluntary, allowing workers to contribute based on their affordability and requirement.

• Family Pension: If the beneficiary passes away, the spouse receives 50 per cent of the pension amount as a family pension. Family pension is applicable only to spouse.

• Exit Provisions: Participants can exit the scheme under specified conditions.

• Easy Enrolment: Eligible workers can register at Common Service Centres (CSCs) or through the Maan-dhan portal.

Eligibility Criteria

• Age Requirement: 18 to 40 years.

• Income Limit: Monthly income should be Rs 15,000 or less.

• Workers engaged in professions such as: Street vendors, rag pickers, rickshaw pullers, construction workers, daily wage labourers, agricultural workers, beedi workers, domestic workers, weavers, artisans, fishermen, leather workers, etc.

Exclusion Criteria:

• Should not be covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension Scheme (NPS).

• Should not be an income taxpayer.

• Should not be receiving benefits from any other government pension scheme.

(The author is a trainer for Civil Services aspirants.)