Pradhan Mantri Shram Yogi Mandhan

Pradhan Mantri Shram Yogi Mandhan

Pradhan Mantri Shram Yogi Mandhan

The central government has established a social security pension scheme for individuals to receive a regular pension after attaining their retirement ages. The Union Finance Minister has announced Pradhan Mantri Shram Yogi Mandhan (PMSYM) in the interim budget 2019 for workers from the unorganised sector. The scheme was declared in February 2019, and the necessary steps have been taken to implement the project. This scheme will be beneficial for those individuals who are retired from organised and unorganised sectors. The budget has increased the gratuity limit from Rs. 10 lakh to Rs. 30 lakh from the following fiscal. Let us look at the features of the scheme in this article.

Objective of the Scheme

The scheme aims to offer financial security to people with no supportive economic facilities. The people working in unorganised sectors can open pension accounts and deposits money regularly. Pradhan Mantri Shram Yogi Mandhan is considered to be the world’s biggest pension scheme for the unorganised sector in five years.

Features of Pradhan Mantri Shram Yogi Mandhan

The characteristic features of the scheme are as follows.

  • On the maturity of the scheme, an individual will be entitled to obtain a monthly pension of Rs. 3000. The pension amount helps pension holders to aid their financial requirements.
  • The scheme runs alongside the Atal Pension Yojana that assures post-retirement.
  • The scheme is a tribute to the workers in the unorganised sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).
  • The candidates have to deposit a certain amount in the pension amount.
  • Those applicants who are 18 years of age, have to make monthly contributions of Rs. 55 till they attain the age of 60.
  • Those applicants who are above 29 years of age, have to deposit Rs. 100 as their monthly contribution.
  • Besides the individual’s contribution, the central government also contributes to the pension account. However, this contribution has not been officially declared.
  • The central government makes estimations on the successful implementation of this pension scheme by which it offers financial assistance to 10 crore people approximately, who makes their living from unorganised sectors.
  • The scheme applies to any individual who is above 18 years of age who can deposit money till the age of 60.
  • Once the applicant attains the age of 60, he/ she can claim the pension amount. Every month a fixed pension amount gets deposited in the pension account of the individuals.
  • The minister has announced that the Central Government has allocated a large sum of Rs. 500 crore for the implementation of the scheme.

Candidates Contribution for the Scheme

The detailed contribution that has to be made by candidates are given below.

  • Candidates who are ten years of age, have to make a monthly contribution of Rs. 55 and a yearly contribution of Rs. 660. This amounts to a pension amount of Rs. 3000 after 60 years of age.
  • Candidates who are above 29 years of age, have to make a monthly contribution of Rs. 100 and a yearly contribution of Rs. 1200. This amounts to a pension amount of Rs. 3000 after 60 years of age.

Eligibility for the Scheme

Here are the eligibility standards for the scheme.

  1. The individual has to be an Indian citizen. The scheme will be implemented across the country. Therefore it is mandatory for residents to be Indian citizens, possessing the required certificates.
  2. Citizens working in organised and unorganised sectors are allowed to join the scheme.
  3. The citizens who receive a monthly income of Rs. Fifteen thousand and below are eligible to benefit from the scheme.

Documents Required for the Scheme

Following are the required documents that have to be used to apply for this scheme.

  • Domicile Certificate
  • Income Certificate
  • Voter ID
  • Aadhaar card
  • Ration card

Application Procedure for the Scheme

Being a recently announced scheme, the implementation of the project is still on progress. Once the details are finalised, citizens can apply for the programme on the government portal.

Other Related Guides

Assam Universal Old Age Pension Scheme Assam Universal Old Age Pension Scheme The Assam Government has declared a universal old age pension scheme, for all the state's senior citizens. Und...
Madhya Pradesh Old Age Pension Scheme  Madhya Pradesh Old Age Pension Scheme The Government of Madhya Pradesh has initiated a social security pension scheme for the old age destitute peop...

Post by Bennisha

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.