Pradhan Mantri Shram Yogi Mandhan (PMSYM)

Pradhan Mantri Shram Yogi Mandhan (PMSYM) is a social initiative launched in February 2019 by the Ministry of Labour and Employment (India) of the Government of India. 

Pradhan Mantri Shram Yogi Mandhan (PMSYM) is a pensions program for persons in the labor class who work in the informal economy and have a minimum age of 18 and a max age of 40. It provides qualified persons with a pension for months after they reach 60 simply by contributing modest sums each month.

Read Pradhan Mantri Kisan Samman Nidhi Yojana.

Highlights of Pradhan Mantri Shram Yogi Mandhan (PMSYM)

• Mr. Piyush Goyal inaugurated Pradhan Mantri Shram Yogi Mandhan (PMSYM) in February 2019.
• Pradhan Mantri Shram Yogi Mandhan (PMSYM)officially began on February 15, 2020.
• The workers of the unorganized/ informal sector are the type of beneficiaries that can profit from Pradhan Mantri Shram Yogi Mandhan (PMSYM).
• Pradhan Mantri Shram Yogi Mandhan (PMSYM) has around 42 crores of participants.
• The following are the contributions of Pradhan Mantri Shram Yogi Mandhan (PMSYM)  that must be paid to this scheme:

1. Individuals who are 18 years old- Rs. 55 every month
2. Individuals who are 29 years old- Rs. 100 every month
3. Individuals who are 40 years old- Rs. 200 every month
4. Individuals over the age of 40 – are ineligible

• Individuals earning less than Rs. 15k per month are eligible for the Pradhan Mantri Shram Yogi Mandhan (PMSYM) scheme.
• Within this arrangement, the subscriber would get a guaranteed pension of Rs. 3000/-.
• The maximum annual contribution to Pradhan Mantri Shram Yogi Mandhan (PMSYM) cannot surpass Rs 2400. I.e Rs. 200 monthly.
• In the event of the subscriber’s death, the beneficiary’s partner will qualify for 50% of the income as a familial pension. The familial pension is solely available to the husband/wife. But, offspring are not qualified.
• Pradhan Mantri Shram Yogi Mandhan (PMSYM) is part of the Central Government’s Voluntary and Contributory Pension Scheme.
• An individual may enroll for Pradhan Mantri Shram Yogi Mandhan (PMSYM) by approaching their nearest Jan Seva Kendra. But, Aadhar Card and Jan Dhan accounts are required.

Because of the erratic character of workers in the informal sector, the departure provisions have been maintained flexibly. Regardless of whether the subscriber chooses to leave the scheme before the 10-year time is over, the sum will be paid with interest at the saving account percentage or the rates at which the funds made income (if the subscriber chooses out of the plan after the 10-year period), whichever is greater.

Read Post Office Time Deposit.

Enrollment Procedure for Pradhan Mantri Shram Yogi Mandhan (PMSYM)

• Those interested and qualified for Pradhan Mantri Shram Yogi Mandhan (PMSYM), must go to the closest CSC (Common Service Centres). CSCs may be found on the information pages of the LIC, Ministry of Labour and Employment, and CSC websites.
• The documents required for Pradhan Mantri Shram Yogi Mandhan (PMSYM) enrollment are

1. The Aadhar card
2. Bank account information. 
3. The IFS code. You can use either a bank passbook or a copy of a bank statement as proof of bank account.
4. A functional mobile phone for OTP verification
5. First contribution for starting a scheme account

• The VLE or village-level entrepreneur at the CSC will enter the Aadhar number, subscriber name, and date of birth as written on the Aadhar card. The information will be validated in the UDAI database via a demography authorization procedure.
• The system will determine the monthly payment based on the subscriber’s age.
• Subscribers will need to pay the first sum to the VL who will later give out receipts to subscribers. Simultaneously, CSC will produce a distinctive SYM number and print an SYM card.
• Enrollment forms combined with Auto debit authorization will then scan and upload the approved mandate into the system.
• The subscriber will receive an SYM card and a signed copy of the enrollment form after satisfactory completion of the process.

Who qualifies to apply for the Pradhan Mantri Shram Yogi Mandhan (PMSYM)?

Pradhan Mantri Shram Yogi Mandhan (PMSYM) is intended for any employment in the informal or unorganized sector.

• Unorganized sectors are communities in which salaries are not set owing to the irregular nature of the job involved. People in the informal sector include street sellers, cobblers, brick builders, leather workers, garbage collectors, pedicabs, landless laborers, beedi workers, and others.
• Individuals whose income is based on the labor they undertake on a daily basis and who do not have a regular source of income are able to apply for the Pradhan Mantri Shramyogi Yojana.
• People in the unorganized sector who earn far less than Rs 15,000 monthly and are between 18 and 40 are also qualified for the Pradhan Mantri Shram Yogi Mandhan (PMSYM).

Who does not qualify to apply for the Pradhan Mantri Shram Yogi Mandhan (PMSYM)?

• Any person who pays tax
• Individuals employed in the organized sector
• Members of NPS or EPF or ESIC 

Advantages Of Pradhan Mantri Shram Yogi Mandhan (PMSYM)

• The government will contribute the same amount to the plan as the applicant, based on his age.
• Pradhan Mantri Shram Yogi Mandhan (PMSYM) would benefit over 42 crore employees in India’s unorganized industries.
• Even if the applicant wants to pull out of the program before ten years, the participant’s portion, as well as the accrued interest, will be paid.
• If a candidate pulls out after ten years but before reaching 60, the candidate will get a refund of the candidate’s payment plus accrued interest.
• If the applicant is paying adequate contributions but dies prematurely, his/her wife/husband is eligible for the scheme’s continuance. If the wife/husband is eligible, she/he is required to make monthly additional contributions. If it is not feasible under any circumstances, the program may always be terminated by deducting the candidate’s contributions to the time along with the interest.

Conclusion

Pradhan Mantri Shram Yogi Mandhan (PMSYM) benefits folks who work in unorganized industries. They rely on everyday salaries to operate their households, and in their senior years, they find it challenging to do so. They have no savings or pensions to fall back on.

To address this issue, the Indian government has devised a practical strategy, Pradhan Mantri Shram Yogi Mandhan (PMSYM). It aims to improve the life of working-class individuals even if they are no longer able to work.

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