MoLE introduces the New Pension Scheme for Unorganised Workers

Feb 21, 2020 | by Avantis RegTech Legal Research Team

A |  A

Labour Compliance

The Ministry of Labour and Employment (MoLE) on February 05, 2020, introduces the New Pension Scheme for Unorganised Workers to provide old age protection to the workers.

The MoLE has introduced two voluntary and contributory pension schemes Unorganised Workers Social Security Act, 2008 they are:

1. Pradhan Mantri Shram Yogi Maan – dhan Yojna (PM-SYM)

• This is for unorganized workers

• Basically, involves the rikshaw pullers, street vendor, mid-day meal workers, washer men, home-based, agricultural works, construction workers, etc. in similar other job. 

• Beneficiary’s age is 18 – 40 years

• They are not a member of Employees State Insurance Corporation (ESIC) and Employees Provident Fund Organization (EPFO) or an income taxpayer.

 2. National Pension Scheme for the Traders and Self-Employed persons (NPS-Traders)

• This is for Vyapari’s (retail traders, shopkeepers, self-employed)

• Whose annual turnover is not exceeding Rs. 1.5 Crore

• Age must be 18 – 40 years 

• Should not be a member of ESIC , EPFO , PM-SYM or an income tax payer.

Scheme provides the minimum assured monthly pension of Rs. 3000 (after attending the age of 60 years). But in the case of subscriber dies then the beneficiary’s spouse as a family pension entitled to receive 50% of the pension. As well the monthly contribution ranges from Rs. 55 to 200 (it will be depending upon the age of the beneficiary). 

This Scheme will implement through:

 Life Insurance Corporation (LIC) of India (it will be a Fund Manager and responsible for pension pay-out)

 Common Service Centres (Enrolment agency responsible for enrolment of the beneficiaries)

[Release ID :199004]



Related Updates

Alternate Text

Get updates on the go on RuleZbook Mobile App.