Donate a Pension Scheme

Context: Recently, Union Labour and Employment Ministry has launched the “donate a pension” scheme under Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) for people to contribute to the pension fund of their support staff.
About ‘Donate a Pension’ Scheme

• This scheme allows any citizen to pay the premium amount on behalf of an unorganized worker under the Pradhan Mantri Shram Yogi Maan-Dhan
• Maan-Dhan scheme is a government scheme meant for old age protection and social security of unorganized workers.

Key Beneficiaries

• The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers and similar other occupations whose monthly income is Rs 15,000/ per month or less.

Eligibility criteria 

• The scheme was launched in 2019, allows unorganized sector workers between 18 and 40 years who earn up to Rs 15,000 a month to enroll by paying a premium amount between Rs 55 and Rs 200, depending on the age, that would be matched by the government.
• Which means the donor can pay the contribution for a minimum of one year, with the amount ranging from Rs 660 to Rs 2,400 a year depending on the age of the beneficiary.
• They should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO). Further, he/she should not be an income tax payer.

Benefits: On reaching the age of 60, the beneficiaries would get a Rs 3,000 monthly pension.