Millions of people working in the unorganised sector often do not have access to a formal pension after retirement. To provide financial support during old age, the government runs the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme.

The scheme has recently crossed an important milestone, with more than 54 lakh workers enrolled across the country, according to the Ministry of Labour and Employment.

What is the PM-SYM scheme?

Pradhan Mantri Shram Yogi Maandhan is a voluntary and contributory pension scheme designed for eligible workers in the unorganised sector.

Under the scheme, subscribers are entitled to an assured pension of ₹3,000 per month after reaching the age of 60, subject to the scheme's conditions.

The objective is to help workers build a basic financial safety net for their retirement years.

Who can apply?

The scheme is primarily meant for unorganised-sector workers between 18 and 40 years of age.

To be eligible, a worker's monthly income should be ₹15,000 or less. The person should also not be an income-tax assessee or a member of EPFO, ESIC or certain government-contributed NPS arrangements.

This can include workers such as street vendors, domestic workers, construction workers, agricultural labourers and others working outside formal employment structures.

How much does a worker have to contribute?

The monthly contribution depends on the age at which the person joins the scheme.

According to the government, the contribution ranges from ₹55 to ₹200 per month. Younger subscribers generally contribute less, while those joining at an older eligible age contribute more.

The contribution is made until the subscriber reaches the age of 60, subject to the scheme's rules.

What happens after 60?

After reaching 60 years of age, an eligible subscriber receives an assured monthly pension of ₹3,000.

The scheme is therefore designed to provide regular income during retirement rather than a one-time payment.

Why is this scheme useful?

For workers without access to an employer-provided pension, even a modest guaranteed monthly income can provide additional financial security after retirement.

The scheme also encourages workers to start planning for retirement at a relatively young age instead of depending entirely on family members later in life.

Check eligibility before applying

Workers should check their age, income, employment status and existing membership in schemes such as EPFO or ESIC before applying. Since PM-SYM is a contributory scheme, applicants should also understand the required monthly contribution and other conditions.

With more than 54 lakh people already enrolled, the scheme continues to be an important government initiative aimed at providing old-age financial protection to India's unorganised workforce.