The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) is a pension scheme launched by the Government of India to provide financial security to workers in the unorganised sector. Recognizing their immense contribution to nearly 50% of the country’s GDP, this voluntary and contributory scheme guarantees a minimum monthly pension of ₹3,000 after the age of 60 to workers earning up to ₹15,000 per month.
Unorganised workers form the backbone of India’s economy, including home-based workers, street vendors, mid-day meal workers, domestic workers, construction laborers, agricultural laborers, beedi workers, handloom workers, rag pickers, cobblers, and many others engaged in similar occupations.
As per the e-Shram portal, over 30.51 crore such workers were registered as of December 31, 2024. The scheme is designed to benefit those who are not covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension Scheme (NPS). Income taxpayers and individuals receiving benefits from any other government pension scheme are also not eligible for PM-SYM.
Launched in the Interim Budget of 2019, PM-SYM is administered by the Ministry of Labour and Employment in collaboration with Life Insurance Corporation of India (LIC) and Common Service Centres (CSC SPV). LIC functions as the Pension Fund Manager and is responsible for the pension disbursement. Enrolment is facilitated through CSCs and the Maandhan portal, ensuring accessibility for workers across the country.
One of the key features of PM-SYM is the government’s contribution, which matches the worker’s contribution on a 1:1 basis. The contribution amount depends on the worker’s age at the time of enrolment.
For instance, an 18-year-old worker contributes ₹55 per month, which the government matches with an equal amount. A 40-year-old worker contributes ₹200 per month, with the government making an equal contribution. Upon reaching 60 years of age, the worker starts receiving a fixed pension of ₹3,000 per month for life. In case of the subscriber’s death, the spouse receives 50% of the pension amount as a family pension.
The enrolment process for PM-SYM is simple. Eligible workers can visit a Common Service Centre with their Aadhaar card and a savings bank account. After biometric authentication, they need to make the first contribution in cash and opt for an auto-debit facility for future contributions. Upon successful enrolment, a PM-SYM card is issued. Workers can also register online through the Maandhan portal.
To enhance the scheme’s implementation and outreach, the government has taken several steps, including periodic review meetings with States and Union Territories, regular interactions with state CSC heads, and the introduction of new features such as Voluntary Exit, Revival Module, Claim Status, and Account Statement.
The account revival period has been extended from one year to three years, allowing greater flexibility for workers facing financial difficulties. Additionally, the integration of PM-SYM with the e-Shram portal and SMS campaigns has been initiated to raise awareness.
Given the uncertain employment conditions of unorganised workers, the scheme offers flexible exit provisions. If a subscriber exits before completing 10 years, the contributed amount is refunded with savings bank interest. If they exit after 10 years but before reaching 60, they receive their contribution along with accrued interest.
In case of death before 60 years, the spouse can either continue the scheme or withdraw the contribution with interest. If both the subscriber and spouse pass away, the entire corpus is credited back to the fund. To accommodate those who miss contributions, provisions have been made for regularizing payments with outstanding dues and penalty charges as decided by the government.