India’s low-paid workers face enrolment hurdles in PM Shram Yogi Maandhan scheme's push for social security

The Pradhan Mantri Shram Yogi Maandhan scheme aims to provide a basic pension to India’s informal sector workers, but faces challenges in enrolment and funding pressures as it strives to secure support from the country’s lowest-paid workers.

The Pradhan Mantri Shram Yogi Maandhan scheme is designed to give some of India’s lowest-paid workers a basic income in old age, offering a monthly pension of Rs3,000 from the age of 60. Introduced in February 2019, the voluntary programme is aimed at people in the unorganised sector, where regular wages and retirement savings are often absent.

According to descriptions of the scheme published by Drishti IAS, Testbook and the beta e-Shram portal, the plan covers workers such as street vendors, domestic workers, construction labourers, rickshaw pullers and other informal labourers whose monthly income is Rs15,000 or less. Entry is limited to those aged between 18 and 40, and monthly contributions rise with age at the time of enrolment.

The worker pays in each month until the age of 60, and the central government matches that contribution. The amount starts at Rs55 a month for someone who joins at 18 and rises to Rs200 a month for those who enrol at 40, with intermediate slabs in between. The scheme is also described as contributory and voluntary, meaning workers must opt in rather than being enrolled automatically.

According to reporting by The Economic Times, enrolment is handled through Common Service Centres, with Aadhaar and bank details used to complete registration, while the first payment is followed by automated debits from the bank account. Government-backed pension plans such as PM-SYM are meant to fill a long-standing gap for workers who are outside formal retirement systems, although Drishti IAS has noted that the scheme has faced challenges, including weak enrolment and funding pressure.