About
- It is a voluntary and contributory pension scheme operating on a 50:50 matching contribution model between the subscriber and the Central Government.
- Upon reaching 60 years of age, enrolled subscribers receive an assured minimum monthly pension of ₹3,000.
- The scheme specifically targets low-income unorganised workers such as street vendors, agricultural workers, construction laborers, domestic workers, and apparel workers.
Key Features
| Feature | Details |
| Scheme Type | Central Sector Scheme (100% centrally funded administration). |
| Nodal Ministry | Ministry of Labour and Employment, Government of India. |
| Pension Fund Manager | Life Insurance Corporation of India (LIC). |
| Enrollment Agency | CSC eGovernance Services India Limited (CSC SPV) and e-Shram Portal. |
| Contribution Pattern | 50:50 Equal Contribution: The subscriber and the Central Government contribute equal monthly amounts until the subscriber reaches 60 years of age. |
| Minimum Assured Pension | ₹3,000 per month delivered via Direct Benefit Transfer (DBT) upon attaining age 60. |
| Family Pension Provision | If the subscriber dies during the pension payout phase, the surviving spouse is entitled to receive 50% of the pension amount as a family pension. |
Eligible Criteria
- Must be an unorganised sector worker (home-based, self-employed, or wage worker).
- Entry age group: 18 to 40 years.
- Monthly income: ≤ ₹15,000 per month.
- Must possess an Aadhaar card and a savings bank account with an auto-debit facility.
Exclusion Criteria (Ineligible Categories):
- Workers engaged in the organised sector.
- Covered under statutory social security schemes: Employees’ Provident Fund Organisation (EPFO), Employees’ State Insurance Corporation (ESIC), or National Pension System (NPS).
- Any individual who is an income taxpayer.
Enrollment & Auto-Debit
- Registration: Facilitated through Common Services Centres (CSCs) or self-registration portals using Aadhaar eKYC.
- Payment: Monthly contributions are automatically deducted directly from the subscriber’s bank account.
Exit & Withdrawal Provisions
- Premature Exit (<60 Years): The subscriber receives their own contribution share along with accrued interest based on the participation period.
- Spousal Rights (Death/Disability <60 Years): In the event of death or permanent disability prior to age 60, the spouse can choose to:
- Continue the scheme by maintaining regular monthly contributions.
- Withdraw the full accumulated fund and close the account.
Conclusion
Through a contributory model with equal support from the Central Government, it ensures an assured minimum pension of ₹3,000 per month after the age of 60, thereby strengthening social protection for India’s large unorganised workforce.
| This concept has been elaborately discussed in the following article: e-Shram Portal |