Around 49 lakh people have invested in PM-SYM and reportedly, there are 40 crore workers who work in the unorganised sector.
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The government of India is re-evaluating the role of the Life Insurance Corporation (LIC) to tighten the operation for enrolment under the voluntary pension schemes for labourers and workers. The government wants more people to engage through Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) and National Pension Scheme (NPS).
The implementation of these schemes is done through LIC and Common Service Center (CSC). Due to the low premium of both the schemes, LIC and CSC are reportedly not very serious about the metrics of the schemes.
PM-SYM is a social scheme that was initiated by the government of India as a pension plan for the working class or labour class society who fall under the unorganised sector. The beneficiaries can opt for this scheme only till the age of 40 years and will receive a regular pension after the age of 60 years, having contributed a chosen amount every month.
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On the other hand, NPS is a scheme through which beneficiaries can earn a stable income after their retirement along with a considerable amount of returns. Account holders are required to make a regular contribution to their pension account throughout their employment period.
According to reports, only 52,671 business owners are subscribed to the NPS scheme. On the other hand, around 49 lakh people have invested in the PM-SYM scheme. As per reports, there are 40 crore workers who work in the unorganised sector but the subscription rate is low.
The Ministry of Labour & Employment, in a review meeting, suggested creating a monitoring system to meet the required targets. The PM-SYM scheme was launched in 2019 but became effective on February 2020 and is available for workers with a minimum monthly salary of Rs 15,000. NPS was launched in 2004 for government employees and later was opened to all in 2009.
Both schemes are voluntary. Under PM-SYM, one can receive up to a Rs 3,000 pension with a minimum contribution of Rs 55 to Rs 200 per month. Whereas, under NPS, the government provides a monthly pension of Rs 3,000 till the age of 60 years. You are required to invest just Rs 55 to Rs 200 per month but because the pension amount is low and hence, business owners avoid this scheme.
