In the interim budget 2019, Modi government announced a subsidized pension scheme for workers in the unorganized sector called Pradhan Mantri Shram-Yogi Maandhan (PMSYM).
Here are provided details on its eligibility criteria:
The minimum age to enroll under the PMSYM scheme is 18 years. And those aged up to 40 years and having a monthly income below Rs. 15,000 can join the scheme. Under the scheme, a person aged 40 years will have to make a contribution of Rs. 200 per month for getting an assured pension of Rs. 3000 on a per month basis after he or she completes 60 years of age.
As per sources from the labour ministry, the process of enrollment under the PMSYM scheme will start soon. Further, the notification concerning the scheme is likely to be released on Friday.
Another pension scheme i.e. still existent Atal Pension Yojana (APY) for unorganized sector workers also has similar income limit. For the person to qualify for enrollment under the scheme, the age bracket permitted is between 18-20 years. Nonetheless, the contribution for a worker from the unorganized sector to join the pension scheme will be less than half.
Contribution in PMSYM versus APY
In PMSYM, workers from the unorganized sector will need to contribute just Rs. 55 on a monthly basis. This is comparatively affordable then the contribution requirement in case of Atal Pension Yojana of Rs. 126 per month for a person aged 18 years to get an assured monthly pension of Rs. 3000 after completing 60 years of age.
Further, those who enroll under the PMSYM scheme at the age of 29 years will need to make a contribution of Rs. 100 per month to get a fixed monthly pension of Rs. 3000 at 60 years of age. While the monthly premium in case of APY for similar amount of pension is Rs. 318 per month.