Context
- A report by the Parliamentary Standing Committee (PSC) has highlighted concerns about the underperformance of the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SMY), a pension scheme for unorganised sector workers.
Highlights of the PSC Report
- Government contributions were reduced by half over two years, with actual expenditure falling to Rs 162.51 crore in FY 2023-24, down from Rs 324.23 crore in FY 2021-22.
- The decline in expenditure reflects a decrease in contributions from both workers and the government, further compromising the scheme’s viability.
- The PM-SYM aimed to enroll 100 million workers by 2023 but only reached 5 million by FY24, covering less than 1% of the 565 million-strong unorganised workforce.
About PM Shram Yogi Maandhan Yojana
- The scheme is meant for old age protection and social security of Unorganised Workers (UW) who are mostly engaged as rickshaw pullers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, home-based workers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers or in similar other occupations. There are estimated 42 crore such unorganised workers in the country.
- Eligibility Criteria
- Should be an unorganised worker (UW)
- Entry age between 18 and 40 years
- Monthly Income Rs 15000 or below
- Should not be
- engaged in Organized Sector (membership of EPF/NPS/ESIC)
- an income tax payer
- He/ She should possess
- Aadhar card
- Savings Bank Account / Jan Dhan account number with IFSC
- Other Features
- It is a voluntary and contributory pension scheme, under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension is applicable only to spouse.
- Fund Management
PM-SYM will be a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and CSC eGovernance Services India Limited (CSC SPV). LIC will be the Pension Fund Manager and responsible for Pension pay out.