Utkarsh Yadav 
In the 2025-26 budget, the Union government increased the allocation for Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme to Rs 244.02 crore, signalling a renewed focus on pension security. While this increase suggests greater attention, it remains insufficient to address the scheme’s fundamental shortcomings.
Launched in 2019 through a notification by the Ministry of Labour and Employment under the Unorganised Workers’ Social Security Act, 2008, PM-SYM aims to provide a monthly pension of Rs 3,000 to unorganised sector workers post 60 years of age.
However, structural constraints, restrictive eligibility and chronic underfunding continue to hinder its ability to serve India’s vast unorganised workforce effectively.
A significant limitation of PM-SYM is the income cap of Rs 15,000 per month, which excludes a considerable number of workers lacking pension security. This exclusionary criterion effectively denies pension security to a significant section of the workforce.
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PM-SYM is structured as a voluntary and contributory pension scheme specifically for unorganised workers aged 18 to 40, with a monthly income ceiling of Rs 15,000. Eligibility is further restricted to individuals who are not already covered by other pension schemes such as the National Pension System (NPS), Employees’ State Insurance Corporation (ESIC), or Employees’ Provident Fund Organisation (EPFO) and who are also not income tax-payers.
The scheme targets vulnerable populations, including home-based workers, street vendors and agricultural labourers. Enrollment necessitates an Aadhaar card and a savings account with the Indian Financial System Code (IFSC). Subscribers are required to contribute a prescribed age-specific amount monthly until the age of 60, with the central government providing a matching contribution.
In the event of a subscriber’s death before reaching 60 years of age, provided regular contributions have been made, the spouse has the option to either continue the scheme or withdraw as per the established provisions. Contributions are facilitated through auto-debit from the subscriber’s designated savings account. As of the latest available data, over 46 lakh unorganised workers have successfully enrolled in the scheme. However, despite this enrollment success, PM-SYM faces several structural and implementation challenges that warrant careful consideration.
These challenges include the absence of a demonstrably clear and readily accessible dispute resolution mechanism. Clause 6 of its notification stipulates that eligibility doubts are referred to the Joint Secretary and Director General, Labour Welfare, in New Delhi. This centralised process presents challenges for workers in rural and remote areas seeking to challenge wrongful exclusions, potentially discouraging appeals and lowering overall participation.
Anothe concern is the restrictive definition of ‘family’ under PM-SYM. The scheme provides a family pension only to the spouse, covering 50% of the subscriber’s pension as outlined in Clause 9 of the notification. Upon the death of both the subscriber and spouse, the accumulated funds revert to the government’s pension corpus instead of being passed on to legal heirs.
Furthermore, PM-SYM lacks nomination provision, a standard feature in most pension schemes. Unlike schemes under the Payment of Arrears of Pension (Nomination) Rules, 1983, PM-SYM does not allow subscribers to designate a nominee, raising concerns about the distribution of pension contributions after the subscriber’s death.
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Chronic underfunding remains a critical concern beyond these structural deficiencies. The government allocated Rs 244.02 crore for PM-SYM in 2025-26, an amount that may be inadequate given India’s large unorganised workforce of over 38 crore. The parliamentary standing committee on labour, textiles, and skill development has noted this limited financial commitment, observing that PM-SYM is far from achieving its enrollment target. Actual enrollments have fallen short of the initial goal of 10 crore within five years since the launch.
The committee’s report suggests that PM-SYM’s low allocation may reflect a lack of prioritisation for social security in the unorganised sector. In comparison, other pension schemes like the Atal Pension Yojana (APY) have received greater financial support and achieved higher participation rates.
Changes needed in PM-SYM to ensure pension security
Structural reforms are necessary to enhance the effectiveness of PM-SYM. Potential adjustments include raising the income cap to Rs 18,000-Rs 20,000 per month to better align with prevailing wage structures, which would enable more workers to enroll. Decentralising dispute resolution by empowering state and district labor offices could enhance accessibility. Expanding the definition of ‘family’ to include dependents such as children and elderly parents could provide broader financial security.
Introducing a nomination provision could ensure pension savings are transferred to rightful heirs. Additionally, extending the entry age from 40 to 50 years may allow older unorganised workers to benefit from the scheme. An integrated approach could involve merging PM-SYM with APY and the Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana to create a more comprehensive pension framework. Such a merger could streamline budgetary constraints and improve efficiency. APY already includes key provisions missing in PM-SYM, and integration may address many of its shortcomings.
The e-Shram portal, which maintains a database of over 30 crore workers, could be leveraged to streamline enrolment and enhance outreach. To boost participation, the government could introduce Direct Benefit Transfer (DBT) subsidies, particularly for workers who cannot afford regular contributions. Furthermore, nationwide awareness campaigns could help counter misinformation and improve enrolment rates, thereby helping PM-SYM reach its intended beneficiaries more effectively.
PM-SYM was introduced to provide pension security to unorganised workers, however, without addressing the budgetary constraints and implementation challenges, its effectiveness will remain diminished. Addressing these issues through increased funding, expanded eligibility, streamlined dispute resolution and better integration with the e-Shram portal could pave way for its success.
Utkarsh Yadav is a law student at Dr. Ram Manohar Lohiya National Law University, Lucknow.