Donate a pension scheme

Context:

The Union Minister for Labour and Employment has announced the “Donate a Pension scheme” initiative under Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) pension scheme recently.

About Donate a Pension Scheme

• This scheme allows any citizen to pay the premium amount on behalf of an unorganized worker under the Pradhan Mantri Shram Yogi Maan-Dhan
• Under this initiative, citizens of India can donate the premium contribution of their immediate support staff such as domestic workers, drivers, helpers, care givers, nurses, in their household or establishment.
• The donor can pay the contribution for a minimum of one year, with the amount ranging from Rs.660 to Rs.2,400 a year depending on the age of the beneficiary, by paying through maandhan.in or visiting a Common Service Center.
• Maan-Dhan scheme is a government scheme meant for old age protection and social security of unorganized workers.

Eligibility criteria and benefits

• The scheme was launched in 2019, allows unorganized sector workers between 18 and 40 years who earn up to ₹15,000 a month to enroll by paying a premium amount between ₹55 and ₹200, depending on the age, that would be matched by the government.
• On reaching the age of 60, the beneficiaries would get a ₹3,000 monthly pension.

Features of the scheme

• The scheme allows a citizen to “donate the premium contribution of their immediate support staff such as domestic workers, drivers, helpers, caregivers, nurses in their household or establishment.
• The donor can pay the contribution for a minimum of one year, with the amount ranging from ₹660 to ₹2,400 a year depending on the age of the beneficiary, by paying through maandhan.in or visiting a Common Service Centre.

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme-

• PM-SYM is a Central Sector Scheme launched in 2019 and administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and CSCs. 
• LIC is the Pension Fund Manager and responsible for Pension pay out. 
• It is a voluntary and contributory Pension Scheme for Unorganized Workers for entry age of 18 to 40 years with monthly income of Rs.15000 or less.
• Under this scheme, minimum assured monthly pension of Rs. 3000/- is provided to the unorganized workers after attaining the age of 60 years.
• After his/ her death, the spouse will receive a monthly family pension which is 50 % of the pension.
• If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
• Under the scheme, contribution is made to the scheme on a 50:50 basis where prescribed age-specific contribution shall be made by the beneficiary and the matching contribution by the Central Government.
• Any worker who is covered under any statutory Social Security Scheme such as NPS, ESIC, EPFO and an income tax payee is not entitled to join the scheme.
• The subscriber is required to contribute the prescribed contribution amount from the age of joining the scheme till the age of 60 years.
• Unorganized workers covered under the scheme are home based workers, street vendors, head loaders, brick kiln, cobblers, rag pickers, domestic workers, washer-men, Rickshaw Pullers, Rural landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, etc.

What is e-Shram Portal?

• It is a national portal will help build a comprehensive National Database of Unorganised Workers (NDUW) in the country.
• It will not only register the unorganised workers but would also be helpful in delivering of various social security schemes being implemented by the Central and State Governments.

Key features of e-Shram portal

• Registration under the e-SHRAM portal is totally free and workers do not have to pay anything for his or her registration at Common Service Centres (CSCs) or anywhere.
• The workers shall be issued an eSHRAM card with unique Universal Account Number (UAN) and will be able to access the benefits of the various social security schemes through this Card anywhere anytime.
• Registration, under the portal, has started from 26 August 2021.
• Authentication of database will be done through Aadhar (97% coverage)

Source: Economic Times

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