Pradhan Mantri Shram Yogi Maandhan Yojana 2025: Pension Scheme for Unorganised Workers

The Government of India launched the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme, which serves as a voluntary pension scheme aimed at providing social protection to unorganised workers. This initiative ensures financial stability for workers engaged in informal sectors by offering them a secure pension plan. The program provides a minimum pension of ₹3,000 per month to eligible workers who meet the income requirement, with their monthly earnings being below ₹15,000. Upon reaching the age of 60, beneficiaries start receiving this pension, helping them maintain a dignified livelihood in their retirement years.

Who are Unorganised Workers?

• The total GDP contribution from unorganised workers reaches about 50% while they encompass:

  • Street vendors, rag pickers, rickshaw pullers

  • Construction workers, daily wage labourers

  • Agricultural workers, beedi workers, handloom workers

  • Domestic workers, weavers, artisans, fishermen, cobblers, etc.

• More than 30.51 crores of unorganised workers applied for registration on the e-Shram portal as of 31 December 2024.

Scheme Administration

The Interim Budget 2019 established PM-SYM as a scheme which receives administration from:

• Ministry of Labour and Employment (Nodal Authority)

• Life Insurance Corporation of India (LIC) (Pension Fund Manager)

• The Enrollment and Implementation services of the PM-SYM scheme are managed through Common Service Centres (CSCs).

• PM-SYM serves as an essential element of the government initiative to secure pensions for every worker in unorganized sectors across the country.

Key Features of PM-SYM

• Minimum Assured Pension: ₹3,000 per month after the age of 60.

• Government Contribution: Matches worker’s contribution on a 1:1 basis.

• Workers participate in PM-SYM by making contributions that correspond to their age and their ability to afford schemes.

• Family Pension: The spouse of the customer who passed away receives 50% of the total pension amount.

• Easy Enrollment: Registration via Common Service Centres (CSCs) or the Maandhan portal.

• LIC manages the funds responsible for steady financial management of the program.

Eligibility Criteria

Workers must satisfy several requirements before joining the PM-SYM program.

• Age Requirement: 18 to 40 years at the time of enrollment.

• Income Limit: The pensioner receives this program only if their monthly salary ranges below ₹15000.

• Employment in Unorganised Sector

  • People who perform street vending along with rag picking and rickshaw pulling activities qualify for this program.

  • Construction, daily wage labour, agriculture

  • Individuals who produce beedis along with handloom makers and who do domestic labor qualify for PM-SYM benefits.

Exclusions

• This scheme should not be included in the coverage of EPF, ESIC or NPS.

• The pension scheme excludes applicants who earn income from any source.

• A person enrolled in PM-SYM cannot get pension benefits from any other government pension programs.

Contribution Structure

Enrolment age determines what type of contribution amount workers need to pay. Workers who join early during their working life will pay smaller monthly amounts.

After aging to 60 years old the program begins paying ₹3,000 every month until eternity.

Implementation & Current Status

Implementation and Current Status

The government continues taking active measures to expand pension coverage across the nation.

• Regular review meetings with States/UTs.

• Two-way integration of PM-SYM and e-Shram.

• Introduction of new features:

• The system features Voluntary Exit, Revival Module and Claim Status with Account Statement functions.

• Extension of revival period for dormant accounts (from 1 year to 3 years).

• The organization conducts SMS marketing campaigns combined with public awareness drives to promote the initiative.

• Due to the Donate-a-Pension Module employers can now make pension contributions on behalf of their employees.

Exit & Withdrawal Provisions

Unorganised workers receive flexible withdrawal options to accommodate their unpredictable work conditions since their employment status remains unstable.

• Exit Before 10 Years

  • The fund will return worker financial resources to them at a rate matching savings bank rate of interest.

• Members who exit between 10 and 60 years of age can receive their funds.

  • Worker contributions will be refunded with high earnings interest or savings bank interest from the day of joining whichever is the higher amount.

• Death Before 60 Years / Permanent Disability

  • Spouse can either:

    • Continue the scheme or

    • Withdraw the amount with interest.

• Death After 60 Years

  • The spouse of a pensioner can receive 50% of the pension amount as family pension benefits.

  • The fund remains within the scheme after both the subscriber and their spouse pass away.

• Default in Contribution

  • The system allows subscribers to pay overdue amounts including penalties when they need to regularize their payments.

Conclusion

The Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) presents itself as a significant social security scheme which focuses on securing financial stability for unorganized sector workers in India.

• Recipients receive ₹3,000 each month to maintain a respectable retirement standard.

• The PM-SYM funding structure remains affordable which motivates unorganized workers to join the program early.

• Promotional campaigns running continuously help more people from various parts of India to become part of this initiative.

The expansion of pension coverage under PM-SYM strengthens both India's social security system and enables the economic core which comprises the workforce.