6 Years Of Pradhan Mantri Shram Yogi Maandhan Yojana

1. Recently, Indian Government  celebrated 6 years of Pradhan Mantri Shram Yogi Maandhan (PM-SYM)
    
2. It is a pension scheme for workers in the unorganised sector.
    
3. Also in December 2024, A Parliamentary Standing Committee (PSC) report raised concerns over the underperformance of the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM).
    

What is the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM)?
 

1. About: PM-SYM is a Central Sector Pension Scheme launched in 2019 by the Government of India, administered by the Ministry of Labour and Employment.
    
2. Under this scheme, Life Insurance Corporation of India (LIC) act as the Pension Fund Manager.
    
3. Target Beneficiaries: The scheme aims at workers in the unorganised sector aged between 18 and 40, such as street vendors, domestic workers, construction labourers, agricultural workers, etc., with a monthly income of up to ₹15,000.
    
4. Pension Benefits: PM-SYM guarantees a pension of ₹3,000 per month after the worker turns 60.
    
5. However, if the worker passes away before 60, there is no lump sum payment to their family.
    
6. The spouse of the deceased worker will receive 50% of the pension amount as a family pension.
    

Implementation and Current Status:
 

1. Coverage: 36 States/UTs
2. Enrollments: 46,12,330 (March 2025)
   • Top 3 States: Haryana, Uttar Pradesh, Maharashtra

Contribution Structure
 

The contribution amount varies based on the age at the time of enrolment. The earlier a worker enrolls, the lower the monthly contribution.

What are the Highlights of the PSC Report on PM-SYM?
 

1. Poor Performance of PM-SYM:
    
   1. The PM-SYM scheme has performed poorly, mainly due to low enrolment and reduced government funding.
   2. Government contributions have halved over the past two years.
   3. In FY 2023-24, the expenditure was ₹162.51 crore, down from ₹324.23 crore in FY 2021-22.
   4. But, In the Union Budget 2025-26, the allocation for PM-SYM has been increased to ₹244.2 crore
   5. The PM-SYM scheme had a target of enrolling 100 million workers by 2023 but achieved only 5 million enrollments by FY 2024, covering less than 1% of the 565 million strong unorganised workforce.
   6. Despite this, the government has extended the scheme until 2025-26.
      
       
2. Reasons for Poor Performance:
    
   1. Income Challenges: Unorganised workers, especially daily wage earners, often have irregular incomes and unstable employment, making it difficult to afford the monthly premium ranging from ₹55 to ₹200.
   2. Impact of Covid-19: The COVID-19 pandemic further exacerbated the financial challenges of unorganised workers, limiting their ability to contribute to the scheme.
   3. Structural Barriers: The lack of a formal employer-employee relationship in the unorganised sector leads to difficulties in accessing the scheme due to insufficient documentation and a lack of awareness.
   4. Existing Pension Alternatives: The availability of other pension schemes like Atal Pension Yojana (APY) may confuse workers, leaving them uncertain about which scheme to opt for.
       
3. Recommendations for Revamping the Scheme:
   1. Expand Entry Age: Increase the eligibility age from 40 years to 50 years to include older unorganised workers.
   2. Scheme Merger: Merge PM-SYM with the Atal Pension Yojana (APY) and Pradhan Mantri Laghu Vyapari Maandhan Yojana to ensure better alignment and broader coverage.
   3. e-Shram Portal: Utilize the e-Shram portal, which has a database of over 305 million workers, to streamline enrolment and ensure wider reach. Integration of PM-SYM with the e-Shram portal could make the enrolment process easier.
   4. Direct Benefit Transfer (DBT): Introduce subsidies for workers who cannot afford to pay the monthly premium, ensuring that they can still benefit from the scheme.
   5. Awareness Campaigns: Launch targeted outreach programs to improve awareness about the scheme and reduce misinformation, which could increase participation.
       

Who are Unorganised Workers?
 

1. As per the Unorganised Workers' Social Security Act, 2008, unorganised workers include home-based workers, self-employed workers, or wage workers who are not covered by key labour laws (e.g., Employees' Compensation Act, Industrial Disputes Act, etc.).
2. Examples: Unorganised workers include street vendors, agricultural labourers, domestic workers, construction workers, and other informal sector employees.
    

Initiatives for Unorganised Workers:
 

Several initiatives aim to improve the welfare of unorganised workers:
 

1. e-Shram Portal: A comprehensive database of unorganised workers.
2. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life insurance for the unorganised workforce.
3. Pradhan Mantri Kaushal Vikas Yojana: Skill development for workers in the unorganised sector.
4. Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY): Health insurance for the unorganised sector.
5. National Pension System (NPS): Voluntary, for government/private employees with tax benefits.
6. Atal Pension Yojana (APY): For unorganised sector workers, offering a guaranteed pension between Rs 1,000–5,000/month.
7. Pradhan Mantri Shram Yogi Maandhan (PM-SYM): Provides Rs 3,000/month for street vendors, domestic workers, etc.
8. PM-Kisan Maandhan Yojana (PM-KMY): Rs 3,000/month pension for farmers.

Global Pension Context:
 

1. India's Pension Ranking: Ranked last among 48 countries in the 2024
2. Mercer CFA Institute Global Pension Index with a score of 44/100.
   • Countries like Denmark, Netherlands, and Iceland top rankings with state-funded systems ensuring universal coverage.
   • India’s system is mostly contribution-based, with low pension coverage, inadequate retirement income, and lack of regulatory oversight.
      

Projected Demographics:
 

1. Ageing Population: By 2036, 227 million Indians (15% of population) will be 60+ years, increasing to 347 million (20%) by 2050.
2. This necessitates a more inclusive pension model
   .

International Models:
 

1. Netherlands: 3-tier system (universal state pension, occupational pension, voluntary savings).
2. Denmark: State-funded universal pension combined with mandatory occupational pensions.
3. New Zealand: Flat-rate universal pension for all residents over 65, regardless of employment history.
4. Sweden: Multi-pillar system (guaranteed minimum pension, income-related pension, optional premium pension).