21% unorganised workers exit PM pension scheme
pension scheme for unorganised workers, Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), saw the exit of about 21% subscribers in less than six months, raising questions on the viability of the scheme. The total number of subscribers under the scheme fell to 4.43 million on July 11, down 1.19 million from an all-time high of 5.62 million on January 31, as per government data.
Experts attributed this to high inflation and rise in cost of living which has made it difficult for unorganised workers to continue contributing to this voluntary pension scheme or may even compel them to withdraw their share of contribution. «Stubbornly high prices have raised the actual cost of living, making it difficult for these workers to sustain the burden of monthly contribution under the scheme,» said labour economist KR Shyam Sundar.
«It would not be surprising if these are permanent exits, with workers actually withdrawing their contribution along with the interest earned on it as high prices continue to pinch on their pockets.» As per the scheme guidelines, in case a subscriber exits the scheme within a period of less than 10 years, the beneficiary will be allowed to withdraw his share of contribution with savings bank interest rate. However, if a subscriber exits after 10 years or more but before superannuation at the age of 60 years, the beneficiary's share of contribution along with accumulated interest as actually earned by fund or at the savings bank interest rate, whichever is higher, will be credited to the beneficiary.
PM-SYM is a voluntary contributory pension scheme launched with an aim to bring millions of unorganised workers into the social security net. It caters to unorganised sector workers in the 18-40 age group and earning
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