Pradhan Mantri Shram Yogi Maandhan Yojana 2019 (PM-SMY) – IMPRI Impact And Policy Research Institute

Policy Update
Aditi Kumari

The Unorganised Workers’ Social Security Act, 2008, obligates the government to ensure comprehensive social security for workers in the unorganised sector. The Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SMY) is a Central Sector Pension Scheme launched in 2019 by the Ministry of Labour and Employment. It aims to provide pension benefits to workers in the unorganized sector, with the Life Insurance Corporation of India (LIC) serving as the Pension Fund Manager.

Objective

Target Beneficiaries

The workers in the age group of 18-40 years whose monthly income is Rs. 15000/- or less and who is not a member of EPFO/ESIC/NPS (Govt. Funded) and not an income tax payer can join the PM-SYM scheme. Eligible workers include street vendors, domestic workers, construction laborers, agricultural workers and other workers.

Functioning

Enrolment Process under PM-SYM

The subscriber will be required to have a mobile phone, savings bank account and Aadhaar number. The eligible subscriber may visit the nearest Common Services Centres (CSC) and get enrolled for PM-SYM using Aadhaar number and savings bank account/ Jan-Dhan account number on self-certification basis.

Contributions

PM-SYM is a voluntary and contributory pension scheme based on a 50:50 funding model. Beneficiaries contribute an age-specific amount ranging from Rs 55 to Rs 200, while the Central Government matches this contribution equally, as outlined in the prescribed chart.

Pension Benefits

(i) Minimum Assured Pension: Each subscriber under the PM-SYM, shall receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years. 

(ii) Family Pension: During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouses. 

(iii) If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.

Government initiatives

To boost enrollment, the government has initiated review meetings with States, UTs and CSC State heads. It has introduced two-way integration of PM-SYM with eShram, launched SMS campaigns and developed the “Donate-a-Pension” module to encourage employers to contribute for workers.

To maintain consistent contributions under the PM-SYM scheme, beneficiaries are allowed to reactivate defaulted, dormant, or suspended accounts within three years of default. This can be done by paying unpaid installments along with interest and penalties. Also, beneficiaries can now view their account statements free of charge. 

Performance

The scheme is implemented through 4 lakh dedicated common service centers covering 38 Indian States and UTs across the country. As on 09.12.2024, 50,84,059 beneficiaries are enrolled under the scheme. The state-wise details are annexed. 

State-wise Registration under PM-SYM scheme (as on 09.12.2024)

Data Source: CSC

The PM-SYM enrollment data highlights significant disparities when analyzed against state populations. Haryana stands out with the highest enrollment (8.25 lakh), reflecting strong implementation despite its smaller population. Larger states like Uttar Pradesh (6.91 lakh) and Bihar (2.20 lakh) show moderate enrollment relative to their population size, indicating potential for greater outreach. Smaller states such as Sikkim and Lakshadweep have fewer than 400 participants. The wide variation in state-wise enrollment highlights regional disparities in awareness and accessibility.

Challenges

A Parliamentary Standing Committee (PSC) report has raised concerns over the underperformance of the PM-SMY. The Scheme is facing several challenges.

The scheme aimed to enroll 100 million workers by 2023 but achieved only 5 million enrollments by FY24, covering less than 1% of the 565 million unorganized workforce. A significant factor contributing to this shortfall is the reduction in government funding, with contributions halving over the past two years. The actual expenditure dropped from Rs 324.23 crore in FY 2021-22 to Rs 162.51 crore in FY 2023-24, reflecting a decline in contributions from both workers and the government.

The actual expenditure under PM-SYM for the last four fiscals were as under:

Source: Ministry of Labour & Employment (Annual Report 2023-24)

The steep decline in government contributions, coupled with workers’ financial constraints, reflects broader systemic issues within the unorganized sector. It may also indicate challenges in reaching target beneficiaries or underutilization of allocated funds. Addressing these barriers requires innovative funding mechanisms, such as employer contributions or public-private partnerships, to ensure the scheme’s sustainability.

In addition, unorganized workers face income challenges due to irregular earnings and unstable employment, making it difficult for them to afford consistent monthly premiums. The COVID-19 pandemic further exacerbated their financial difficulties, reducing their ability to contribute to the scheme. Structural barriers, such as the lack of the formal employer-employee relationship, insufficient documentation and limited awareness also hinder access to the scheme. Furthermore, the existence of alternative pension schemes like the Atal Pension Yojana (APY) creates confusion among workers, leaving them uncertain about which scheme to choose. These factors collectively undermine the scheme’s success in reaching its intended beneficiaries. 

Way Forward

The PM-SYM program has made significant strides in providing social security to workers in the unorganized sector, but further improvements can enhance its reach and effectiveness. To achieve equitable enrollment coverage, targeted campaigns and tailored strategies are essential, focusing on underperforming high-population states and overlooked regions. 

Targeted outreach efforts in multiple languages across both traditional and digital channels are essential for reaching diverse demographics and regions. Expanding financial literacy programs will educate beneficiaries about the scheme’s benefits and promote long-term financial planning. Addressing documentation challenges is crucial to ensure the process is inclusive and doesn’t become a barrier to enrollment. Integrating healthcare benefits into the scheme can provide a more holistic social security package. Promoting technology integration for enrollment and information dissemination will enhance accessibility and efficiency.

Moreover, ensuring equity in coverage across different demographics, industries and regions should be a priority. Finally, establishing a robust system for continuous monitoring and feedback will allow for ongoing improvements and adjustments to the scheme.

Along with social security, the government must focus on workforce upskilling, job creation in the formal sector, and labor law reforms to include informal workers. These steps would ensure wage protection, job security and social security for workers, ultimately easing their hardships. Such measures would also enhance productivity and drive economic growth, benefiting the nation as a whole.

References

1. Unorganised Workers Social Security Act, 2008. (2008, December 30). India Code. https://www.indiacode.nic.in/handle/123456789/2100?view_type=search
2. PM-SYM Scheme. Ministry of Labour & Employment (2023). https://labour.gov.in/pm-Sym.
3. Features of PM-SYM. (2025). Ministry of Labour & Employment. https://maandhan.in/.
4. Prescribed chart for the Monthly Contribution. (2024). Employees’ Provident Fund Organisation. https://www.epfindia.gov.in/site_docs/PDFs/MiscPDFs/Scheme_PM-SYM.pdf
5. Starred question no.191 on the Performance. (2024). Ministry of Labour & Employment. https://www.epfindia.gov.in/site_docs/PDFs/MiscPDFs/Scheme_PM-SYM.pdf
6. STANDING COMMITTEE ON LABOUR, TEXTILES AND SKILL DEVELOPMENT. (2023). FORTY-FIRST REPORT. In MINISTRY OF LABOUR AND EMPLOYMENT DEMANDS FOR GRANTS. LOK SABHA SECRETARIAT. https://loksabhadocs.nic.in/lsscommittee/Labour,%20Textiles%20and%20Skill%20Development/17_Labour_Textiles_and_Skill_Development_41.pdf#page=50
7. Annual Report 2023-24. In the Ministry of Labour & Employment. https://labour.gov.in/sites/default/files/ar_2023_24_compressed.pdf
8. UMANG (PM-SYM). (2025). In the Ministry of Electronics & IT, Govt. of India. https://web.umang.gov.in/landing/department/maandhan.html

About the Author: Aditi Kumari is a research intern at the Impact and Policy Research Institute (IMPRI), pursuing a master’s degree in Sociology.

Acknowledgement: The author extends sincere gratitude to Dr Arjun Kumar, Aasthaba Jadeja, Qazi Furooz and Riya Rawat for their invaluable guidance and suggestions.

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