PMSYM (Pradhan Mantri Shram Yogi Mandhan) - Pensions and Benefits
PM-SYM or 'Pradhan Mantri Shram Yogi Maan-Dhan' is a pension scheme introduced by the Government of India in February 2019 for the workers of unorganized sectors. The PM-SYM subscribers will receive pensions of Rs.3000 (minimum) per month from the 60th birthday.
Each subscriber has to contribute a fixed amount until the age of 60 years. The available modes of contributions are quarterly, half-yearly, and yearly. The amount of contribution is applicable based on the age of the applicant. Premature withdrawal and exit are allowed under PMSYM.
Also Read: Atal Pension Yojana (APY) - Eligibility, Pension and Other Benefits
Eligibility criteria of the Pradhan Mantri Shram Yogi Mandhan (PMSYM) scheme
An individual who wants to open a PM-SYM account has to meet the following criteria:
- The applicant must be a worker of any unorganized sector.
- Individuals whose income is equal or below Rs. 15k is only eligible for the PM-SYM scheme.
- An individual is allowed to open a PM-SYM account in the age between 18 to 40.
Who is not eligible under the PMSYM scheme?
An applicant will not be allowed to open a PM-SYM account in case of the following reasons:
- The applicant should not be an income taxpayer.
- Persons having an account in NPS (New Pension System), ESIC (Employees’ State Insurance Corporation), EPFO (Employees’ Provident Fund Organization) are not allowed to open a PM-SYM account.
List of eligible unorganized sectors
| Street Vendors | Head Loaders | Brick Kiln Workers | Home-Based Workers | Rag Pickers |
| Domestic Workers | Washermen | Landless Laborer's | Own-account Workers | Rickshaw Pullers |
| Agricultural Workers | Construction Workers | Beedi Workers | Handloom Workers | Mid-day Meal Workers |
| Leatherworkers | Audio-visual Workers | Cobblers and similar other occupations, etc. | ||
Contributions under the PM-SYM scheme
Each customer has to contribute a certain amount until the age of 60 years. Available modes of contribution are quarterly, half-yearly, and yearly. The amount of contribution is applicable based on the age of the applicant. The contribution procedure completes through an "auto-debit" facility. Only the first payment should deposit in cash.
50:50 Co-contribution
The PM-SYM is a voluntary pension scheme on a 50:50 basis. The Government will co-credit the same amount, that the subscriber contributes.
As an example, if one subscribes PMSYM scheme at the age of 18 years. Then he/ she have to deposit Rs 55 per month till attaining the age of 60 years. Parallelly, the Government will co-contribute the same amount of Rs 55 per month for the lifespan of the scheme.
PM-SYM Contribution chart
| Entry Age | Contribution P/month (Rs.) | Gov. Co-Contribution (Rs.) | Total Contribution (Rs.) |
| 18 | 55 | 55 | 110 |
| 19 | 58 | 58 | 116 |
| 20 | 61 | 61 | 122 |
| 21 | 64 | 64 | 128 |
| 22 | 68 | 68 | 136 |
| 23 | 72 | 72 | 144 |
| 24 | 76 | 76 | 152 |
| 25 | 80 | 80 | 160 |
| 26 | 85 | 85 | 170 |
| 27 | 90 | 90 | 180 |
| 28 | 95 | 95 | 190 |
| 29 | 100 | 100 | 200 |
| 30 | 105 | 105 | 210 |
| 31 | 110 | 110 | 220 |
| 32 | 120 | 120 | 240 |
| 33 | 130 | 130 | 260 |
| 34 | 140 | 140 | 280 |
| 35 | 150 | 150 | 300 |
| 36 | 160 | 160 | 320 |
| 37 | 170 | 170 | 340 |
| 38 | 180 | 180 | 360 |
| 39 | 190 | 190 | 380 |
| 40 | 200 | 200 | 400 |
Documents required for opening a PMSYM account
In order to open a Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) account, an applicant must produce the following documents:
- Identity Proof
- Aadhaar Card
- Phone number linked with Aadhaar card for OTP verification
- Savings Bank Account or, Jhan Dhan Bank Account
Also Read: How to Save Money - 10 Simple Money Saving Tips
Where to open a PMSYM account?
To open a PMSYM account, the applicant has to visit his nearest CSC (Common Services Centres) or CSC eGovernance Service India Limited (CSC SPV). Alternatively, he/ she can visit any branch of Life Insurence Corporation of India (LIC), EPFO, ESIC, or labor offices of central and state Governments.
Enrollment Agencies under PMSYM scheme
- Common Services Centers (CSC).
- Facilitation Centers
- All the labor offices of State Government and Central Government
- Any branch of Life Insurence Corporation of India (LICI)
- ESIC (Employees’ State Insurance Corporation) / EPFO (Employees’ Provident Fund Organization) office center
Nomination facility under PMSYM
The nominee adding process is not mandatory. However, if any subscriber wants to add a nominee, he/she can do it. During the account opening, the applicant can fill nominee details into the account opening form. Although, it is allowed to delete or modify nominee later anytime. As of now, the PMSYM scheme allows adding only one individual's name as the nominee.
Fund Management
PM-SYM is a Gov. of India pension scheme, introduced by the Ministry of Labor and Employment. The initial implementation of PMSYM was done by the Life Insurance Corporation of India and CSC E-governance Services India Limited (CSC SPV). As of now, LIC is the director of the pension fund and the responsible authority for managing funds and paying pensions.
Premature withdrawal or exit rules under PM-SYM scheme
Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-SYM) allows exit before the maturity with certain conditions. Those are the following:
Before ten (10) years
If someone leaves the scheme before completion of 10 years, he/she will receive the invested capital with a rate of interest as per the standard interest of a regular savings account.
After ten (10) years
In case the subscriber exits after ten years from the account opening date, he/she will receive the invested lumpsum with the predefined interest or savings bank interest-rate, whichever will be higher at the time of exit.
Death of the account holder
On an uncertain death, the family of the subscriber will have two options:
- The spouse of the beneficiary can continue the account farther.
- The spouse can exit the scheme. In the case of exit, the spouse will receive the invested capital with the predefined interest or savings bank interest-rate, whichever will be higher.
Other reasons
Due to physical disability, if the subscriber is unable to continue, he/ she can exit from the scheme anytime. Upon exit, the subscriber will receive the corpus along with applicable interest. Other than any reason mentioned above is subject to a decision of the Government in consultation with the NSSB (national Skills Standard Board).
Pension Pay-Out
On maturity, the subscriber will continue to receive applicable pensions with family pension (minimum Rs.3000) benefits of the 100% annuity option. However, the process of purchasing an annuity is fully automatic and internal. The subscriber has no such formalities during the maturity.
Key benefits of PM-SYM scheme
- The subscriber of the PM-SYM scheme will receive a guaranteed pension of minimum Rs 3000 per month after attaining 60 years of age.
- The Government's co-contribution makes the scheme more attractive.
- PMSYM scheme is a family pension scheme. During the pension period, if the primary subscriber dies, the spouse will receive 50% of his/ her pension as a family pension.
- If the account beneficiary deposits money on a regular basis and he/she died before the superannuation age of 60 years, the spouse can continue or exit from the scheme.
- The premature exit is allowed in the PMSYM scheme. However, the returns may vary in different situations.
Some drawbacks of the PM-SYM scheme
- This scheme is only for unorganized sector workers.
- Loan facilities are not available under PMSYS.
- The family-pension is only applicable to the spouse of the beneficiary.
Also read: Invest in PPF - 8 reasons you should know about
FAQs
What are the available modes of contribution?
You can choose any contribution option like monthly, quarterly, half-yearly, and yearly.
Whether there is an auto-debit facility?
Yes, an auto-debit facility is available. But, the first payment should make by cash deposit at the CSA center.
Is there any account maintenance or fund managing cost in the PMSYM scheme?
No, there are no such charges mentioned in the official scheme brochure.
Can I add a nominee?
Yes, a nominee can add when filling out the account opening form.
What is the procedure to change the nominee?
PM-SYM allows change of nominee anytime. All you need to visit the respective branch where the account has opened.
If both husband and wife are members of PMSYM and both die, will other members of the family be eligible to receive a pension?
No. The pension will no longer continue in case of death of the subscriber and spouse. However, the nominee will receive the corpus made in the PM-SYM account.
Can I open both the APY and PM-SYM scheme?
Yes, you can. There are no such restrictions in availing both APY and PMSYM scheme.
Can I continue the account if my monthly income exceeds Rs 15,000 after joining the scheme?
Yes, you can continue the scheme.
Is partial withdrawal available in the PM-SYM scheme?
No, partial withdrawal is not allowed in the PM-SYM scheme.
Visit PM-SYM official web portal. https://labour.gov.in/pm-sym