The central govt. of India introduced the new pension scheme i.e. Pradhan Mantra Shram Yogi Mandhan (PMSYM) for Labour/ Worker in Unorganised Sector. It was launched to provide assured monthly pension of 3000 rupees per month, with a contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.

Body:

Salient features of PM-SYM:

• The scheme is for informal sector or unorganised sector workers.
• Minimum Assured Pension: Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
• The scheme is eligible for persons aged between 18 and 40 and are earning Rs. 15000 are less per month
• Family Pension: During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse.
• The subscribers have to pay a monthly amount of Rs. 100 if the subscriber joins at age 29 and Rs. 55 if the subscriber joins the scheme at 18.
• The same amount will be matched by the government.
• The scheme is estimated to benefit 10 Crore workers from informal sector.
• The government has allocated an initial fund of Rs. 500 crore for the scheme.
• PM-SYM is a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and Community Service Centers (CSCs). LIC will be the Pension Fund Manager and responsible for Pension pay out.

Significance of the scheme:

• It is estimated that over 42 crore workers in India are working in the informal sector.
• 50 per cent of the country’s Gross Domestic Product (GDP) comes from “sweat and toil of 42 crore workers in the unorganised sector.”
• As per the India Labour Market Update of 2016, 82% of the Indian workforce is in unorganised sector.
• The workers of the sector include street vendors, rag pickers, porters, beedi workers, rickshaw pullers, agricultural labourers etc.
• The nature of their job and the income they receive are not stable. Often due to non availability of any laws to protect their interest, they are subjected to violation by the employers.
• This uncertain earnings puts pressure on them financially and need some kind of monetary protection to lead a life with means after their productive years.
• About 91 per cent of the informal sector, which was dependent on cash for survival, was harmed due to demonetisation.
• It is why social security schemes such as Pradhan Mantri Shram Yogi Mandhan (PMSYM) becomes necessary where the government is contributing in the premium amount.
• The new pension scheme will run alongside the existing Atal Pension Yojana, which guarantees returns post-retirement

Way forward:

• Along with the social security, Government should ramp up skilling of the workforce, take steps to generate more jobs in the formal sector, change labour laws to include informal workers.
• It will in effect provide wage protection, job security, social security to the workers and ultimately alleviate the hardships they face.
• Eventually it will boost the overall economic growth of the country.