COVID-19 impact: Enrolments in PM pension scheme down 92%
With lower interest rates in the times of a pandemic, the informal sector is not keen to enroll for the voluntary pension scheme
Blame it on the COVID-19 pandemic, the enrolments for the informal sector’s voluntary pension scheme Pradhan Mantri Shram Yogi Mandhan (PMSYM) nosedived 92% to 1.30 lakh in FY21 from 15.90 lakh in FY20, The Economic Times reported Wednesday.
Quoting a government official, the report said that unorganized workers have been struggling to make their both ends meet and saving for a small retirement monthly pension is no longer a priority for them. The country witnessed an exodus of the migrant workers, worst hit by the pandemic.
Besides, the return offered under PMSYM is arguably lower to attract the unorganized sector workers.
According to the report, only 4.5 million workers have signed up for PMSYM so far, while the scheme targets 420 million workers from the unorganized sector.
What is PMSYM?
PMSYM is a social welfare scheme for the unorganized sector launched by the Government of India in February 2019. The scheme aims to induce the habit of savings in the informal sector workers.
Anyone aged 18-40 years with a monthly income of Rs 15,000 is eligible to enroll for the scheme. The beneficiary will receive a minimum monthly pension of Rs 3,000 after the age of 60 years.
According to the age an , individual contributes between ₹55 and ₹200 every month till the age of 60 and an equal contribution is made by the government. Taxpayers are not eligible for PMSYM.