PM-SYM – Pension Scheme for Unorganised Workers

Last Updated at: Jul 11, 2020
PM-SYM – Pension scheme for unorganised workers
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 Rs 3,000, from February 15, a Labour Ministry notification said.


Social welfare is something that all countries strive to achieve. Especially for a developing country like India, it is vital that we take care of our labour force as most people work in medium or low-income jobs. The upliftment of such labourers will help in increasing the average standard of living, and hence the government comes up with several schemes which will benefit such labourers. The Pradhan Mantri Shram Yogi Maan-Dhan Scheme, popularly known as PM-SYM is a benefit scheme mainly aimed at helping people secure old-age protection and also for unorganised workers and labourers to have some form of social security. Such labourers include workers like

  1. Rickshaw pullers
  2. Street vendors
  3. Manual loaders
  4. Cobblers
  5. Manual scavengers
  6. Domestic workers
  7. Washer men
  8. Agricultural workers
  9. Construction workers
  10. Cement mixers
  11. Handloom workers
  12. Potters

Here’s a look at everything you need to know about the PM-SYM and how you can sign up for it. 


Here’s what all you need to satisfy in order to be eligible to apply for this pension or scheme.

  • Must be an unorganised worker 
  • Must be between 18 and 40 years old
  • Your monthly income must be below Rs 15000 
  • Must not have any EPF, NPS or ESIC registrations
  • Must be an income taxpayer
  • Should have
  1. Aadhaar card 
  2. Savings Bank Account or a Jan Dhan account 

Things to Keep In Mind

    • The PM-SYM is a voluntary pension scheme which works as a contributory beneficial plan.
    • The minimum pension that an individual is assured under this scheme is Rs 3000 every month as soon as they reach 60 years of age.
    • If the pensioner dies, then his or her spouse will receive 50% of the pension amount in the name of family pension.
    • The amount will be debited as per auto-debit facility to the pensioner’s savings bank account or Jan- Dhan account depending on whichever they use to register to the scheme by till they reach 60 years. 
    • Everyone who is a part of the scheme must contribute a base pay from the day they join till they attain 60 years, following which they will start receiving benefits from the project.
    • The enrolment procedure is administered and monitored by the Common Services Centres, which are in most major towns and cities in the country. 
    • Labour offices that come under the jurisdiction of both State and Central Governments, LIC offices and ESIC/EPFO offices will be Facilitation Centres which provide workers with information regarding the scheme.
    • The PM-SYM will be looked after by the Ministry of Labour and Employment and will be providing benefit through the Life Insurance Corporation of India. LIC serves as the Pension Fund Manager and will also be responsible for paying the pensioners.
    • In case of any grievances, complaints or suggestions, beneficiaries are advised to contact the Customer Care service using this toll-free number 1800 2676 888, which is active all twenty-four hours a day.
    • Complaints can also be filed via the mobile app and required action will be taken after a hearing or enquiry.
    • In case someone has any doubt regarding the scheme, the Joint Secretary of Labour Welfare will be the one who will have the final say in the matter.
    • Doubts may be addressed to 
    • may be used to find your nearest CS centre. 

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Contribution Plan

Here’s a look at how much someone has to contribute depending on their age and salary. As is visible from the table, the PM-SYM is a contributory pension system that functions on a 50:50 basis wherein the beneficiary makes 50% contribution and the Government does their part by providing the other 50%.  


Entry Age Member’s  monthly contribution (Rs) Central Govt’s  monthly contribution (Rs) Total monthly contribution  (Rs)
18 55 55 110
19 58 58 116
20 61 61 122
21 64 64 128
22 68 68 136
23 72 72 144
24 76 76 152
25 80 80 160
26 85 85 170
27 90 90 180
28 95 95 190
29 100 100 200
30 105 105 210
31 110 110 220
32 120 120 240
33 130 130 260
34 140 140 280
35 150 150 300
36 160 160 320
37 170 170 340
38 180 180 360
39 190 190 380
40 200 200 400


Registration Procedure

  1. The pensioner or beneficiary must go to the nearest Common Services Centre to get enrolled for the PM-SYM.
  2. He or she will need to carry their Aadhaar Card and bank account passbook or documentation so as to identify and register themselves.
  3. The first contribution should be paid in cash, and from the subsequent month, the money will be automatically debited from their account.
  4. After completing the registration, the labourer may use the PM-SYM portal or use the mobile app to register and update their profiles.

Withdrawal from PM-SYM Scheme

As unorganised labour pools do not have any fixed income and have very erratic labour prospects, the Government has ensured that the withdrawal policies for this scheme are flexible and straightforward. This ensures that more workers will be brought under this umbrella as they will not be afraid of the consequences they will have to face if they have to pull out from the scheme.

  • If the beneficiary withdraws before ten years, his or her contribution will be returned at a rate that savings bank accounts provide.
  • If the subscriber pulls out from the scheme after ten years, then his or her share and its highest interest calculated via fund management or savings account interest rate will be credited to them.
  • If a beneficiary dies while a part of the scheme, then his or her spouse is eligible to continue paying their contribution. If they want to exit, they may do so, and in this case, they will get their share plus the highest interest which has been accumulated either by investing in funds or at a rate prescribed by banks.
  • If a regularly contributing beneficiary becomes permanently disabled before becoming sixty years old, then their spouse has the option of continuing to contribute. However, if they wish to withdraw from the scheme, they may do so. In doing so, they will receive the share provided by the beneficiary and accumulated interest.
  •  If both a beneficiary and his or her spouse dies, then the entire amount contributed by them dissolves into the fund. 
  • If a beneficiary has not been able to make regular contributions, they have the option of clearing their outstanding overdue at one shot, when they get the capital to do so. They might have to pay a penalty charge along with their dues and this will be decided by the Central Government.


A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.