PM Shram Yogi Maandhan: Modi government's new pension scheme to benefit workers below the age of 40
The new pension scheme promises to give Rs 3,000 per month to the labours working in the unorganised sector. However, there is a limitation in the scheme as workers above the of age 40 would not be eligible to join the scheme.
Budget 2019: A new pension scheme for unorganised sector workers, ‘Pradhan Mantri Shram Yogi Maan-Dhan 2019’ was announced in the interim budget on February 1. It targets a workforce of 400 million unorganised workers in both urban and rural regions of India. The new pension scheme promises to give Rs 3,000 per month to the workers in the unorganised sector. However, there is a limitation in the scheme as workers above the of age 40 would not be eligible to join the scheme.
The scheme has strict rules for discontinuing the pension, as per the latest notification issued on Thursday. It does not allow children of subscribers to be made nominees.
1. Age limit
Workers in the unorganised sector can subscribe to the scheme at the minimum age of 18 years by paying Rs 55 a month. However, the maximum age limit to join the scheme is kept at 40 (with Rs 200 a month).
It has been declared that the central government has committed to contribute an equal amount.
2. When the worker has joined other schemes
The notification that came on Thursday also says that unorganised sector workers who have joined National Pension Scheme, Employees’ State Insurance Corporation scheme or Employees’ Provident Fund will not be eligible to join the new pension scheme. It added that income-tax assesses are also excluded from the scheme.
The scheme is likely to benefit 100 million workers in the unorganised sector which contributes half of India's GDP. The sector includes workers like maids, cooks and housekeepers, small scale workers, informal businessmen (with earnings up to ₹15,000 per month), street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, hand-loom, leather etc.
4. In case of the death of the subscriber:
The spouse will be eligible for pension benefits. However, children of the subscriber will not be entitled to them.