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Pension scheme for workers in informal sector to kick-start from February 15

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All unorganised sector workers up to 40 years of age can subscribe to the Pradhan Mantri Shram Yogi Maandhan (PMSYM) scheme, which entails a minimum monthly pension of ₹3,000, from February 15, a Labour Ministry notification said.

The scheme, announced by Finance Minister Piyush Goyal in the Interim Budget, is targeted at unorganised sector workers with monthly income of up to ₹15,000.

Mr. Goyal had said it would benefit 10 crore workers in the next five years. The scheme would provide them with an assured pension of ₹3,000 from the age of 60 years on a monthly contribution of a small amount during their working life.

“This scheme may be called the Pradhan Mantri Shram Yogi Maandhan, 2019. It shall come into force on the 15th day of February, 2019….the unorganised workers have option to become the members of the scheme, on and from the 15th day of February, 2019,” the notification issued by the Labour Ministry said.

The monthly contribution by the worker joining the scheme would be ₹55, with matching contributions from the government.

The contributions would rise at higher age. The worker joining the scheme at the age of 40 years would contribute ₹200, while workers at the age of 29 years would pay ₹100.

The scheme would cover unorganised workers who are working or 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, agricultural workers amd construction workers, among others.

However, informal workers will not be eligible for the scheme if they are covered under the National Pension Scheme, the Employees’ State Insurance Corporation Scheme or Employees’ Provident Fund Scheme.

Workers who are income-tax assesses are also not eligible to join the scheme.

Source: The Hindu


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