PENSION SCHEME: In the country, there are tons of folks who aren’t working in factories, companies, or government jobs. Some are pushing handcarts, others are driving rickshaws, some are doing labor work, and a few are running their own small businesses. The main worry for these individuals is figuring out how to handle their household expenses as they get older and their ability to work decreases.
The central government’s Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme is here to help with that. It offers a monthly pension of Rs 3,000 to workers in the unorganized sector once they hit 60.
What exactly is the Prime Minister’s Shram Yogi Maandhan Scheme?
Launched in 2019, the Pradhan Mantri Shram Yogi Maandhan Yojana is a pension plan aimed at those in the unorganized sector. Once you sign up for this scheme, you’ll need to pay a small monthly fee based on your age. The government matches your contribution. When you turn 60, you’ll start receiving a minimum monthly pension of Rs 3,000.
Who is this scheme for?
This scheme is specifically tailored for individuals working in the unorganized sector with lower incomes. This includes street vendors, rickshaw drivers, e-rickshaw operators, domestic workers, construction laborers, agricultural workers, and people involved in leather and handloom industries, as well as small shopkeepers and self-employed individuals.
What are the requirements to join the scheme?
To take advantage of the scheme, you need to meet certain eligibility criteria. Applicants should be between 18 and 40 years old, earn Rs 15,000 or less per month, work in the unorganized sector, and not pay income tax. Additionally, you shouldn’t be part of any other government social security program like EPFO, ESIC, or the National Pension System (NPS).
How much do you need to pay each month?
The monthly deposit amount for the scheme varies based on your age. For instance, if someone joins at 18, they only need to contribute Rs 55 each month. Those who join at the age of 40 will need to deposit Rs 200 per month.
The most important thing is that the government will deposit an equal amount into the beneficiary’s account, equal to the amount deposited. For example, if you deposit Rs 100 every month, the government will also add Rs 100.
How to apply for the scheme?
Joining this scheme is quite easy. Simply visit your nearest Common Service Center (CSC). Registration can be done by providing your Aadhaar card and bank account details. Auto-debit is enabled at the time of registration. This automatically debits the fixed amount from your account every month, eliminating the need for separate payments.
What will you get after 60 years?
When the beneficiary attains the age of 60 years, he/she starts receiving a pension of Rs 3,000 every month. If both husband and wife are enrolled in this scheme, they will receive separate pensions, which means the family can receive a total pension benefit of up to Rs 6,000 per month.
What happens if the beneficiary dies?
If the beneficiary dies after the commencement of pension, the family pension is given to his/her spouse.
This family pension is 50 percent of the basic pension. This means that if a spouse receives a pension of Rs 3,000, they will receive Rs 1,500 per month. If a member fails to pay their installment on time, they can restart the scheme at a later date by paying the outstanding amount along with interest. The interest rate will be decided by the government. On exit within 10 years of joining the scheme, the member will be refunded only the amount of his/her deposited contribution along with interest on the savings account.
If a member leaves the scheme after 10 years but before the age of 60, he will get back his contribution along with the interest earned on the pension fund. Upon the death of the member, his/her spouse can continue the scheme by making regular contributions. If the pensioner dies after the age of 60, his/her nominee or spouse will receive 50 per cent of the family pension.
Keep inflation factor in mind
To benefit from the scheme, regular contributions are required until the age of 60. Insufficient funds in the bank account may result in installment payments. Another important thing to understand is that this plan provides a fixed pension of Rs 3,000 per month after the age of 60. This pension does not increase according to inflation. Therefore, instead of relying solely on this plan for all future financial needs, you should also consider other savings and investment options.
