Add Rs 55 and get Rs 3000 as a pension—a government scheme for non-taxpayers

Pension Scheme: The Government of India has introduced a dedicated initiative for individuals employed in the unorganized sector, known as the ‘Pradhan Mantri Shram Yogi Maandhan Yojana’ (PM-SYM). This program serves as a significant support system for laborers who rely on their hard work for sustenance but face challenges related to financial stability in their later years. It is essential to explore the details of this scheme, including its beneficiaries and the pension amount it offers.

Launched on February 1, 2019, the Pradhan Mantri Shram Yogi Maandhan Yojana (PM Shram Yogi Maandhan Yojana) is a voluntary and contributory pension scheme aimed at providing financial assistance to workers in the unorganized sector during their old age. Participants receive a monthly pension of Rs 3000 upon reaching the age of 60, with the funds being directly credited to their bank accounts to enhance their quality of life.

Eligibility criteria

Eligibility criteria include workers aged between 18 and 40 years, with a monthly income not exceeding Rs 15,000. Individuals who pay income tax, employees in the organized sector (such as members of EPF, NPS, ESIC), and recipients of other government pension schemes are ineligible to participate in this program.

How to get pension from this scheme

Participants are required to contribute a specific amount each month, which varies based on their age. The government matches the contribution made by the individual. Contributions must continue until the individual reaches 60 years of age, after which they will receive a lifelong monthly pension of Rs 3000. The required monthly contributions based on age are as follows:

At age 18: Rs 55 per month.

At age 29: Rs 100 per month.

At age 40: Rs 200 per month.

Here’s a calculation

For instance, if an individual contributes Rs 55 monthly starting at age 18, the government will also contribute Rs 55, resulting in a total savings of Rs 110 per month. Consequently, upon reaching the age of 60, the individual will be entitled to a monthly pension of Rs 3000.