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Q100 (IAS/2024) Economy › Schemes, Inclusion & Social Sector › Social security schemes Official Key

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements : 1. The entry age group for enrolment in the scheme is 21 to 40 years. 2. Age specific contribution shall be made by the beneficiary. 3. Each subscriber under the scheme shall receive a minimum pension of ₹ 3,000 per month after attaining the age of 60 years. 4. Family pension is applicable to the spouse and unmarried daughters. Which of the statements given above is/are correct ?

Result
Your answer:  ·  Correct: B
Explanation

The entry age group for PM-SYM is 18 to 40 years, not 21 to 40 years[2], making statement 1 incorrect. Statement 2 is correct as monthly contributions range from Rs.55 to Rs.200 depending upon the entry age of the beneficiary[3], and this contribution increases as the subscriber grows old[4]. Statement 3 is also correct since a minimum monthly pension of ₹3,000 is given after 60 years of age[2]. However, statement 4 is incorrect because if the beneficiary passes away, the spouse receives 50% of the pension amount[5], with no mention of unmarried daughters being eligible for family pension. Therefore, only statements 2 and 3 are correct, making option B the right answer.

Sources
  1. [1] https://www.epfindia.gov.in/site_docs/PDFs/MiscPDFs/FAQ_PM-SYM.pdf
  2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
  3. [3] https://eshram.gov.in/social-security-welfare-schemes
  4. [5] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2108082
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements : 1. The entry age group fo…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 · 5/10

This is a classic 'Scheme Anatomy' question. It combines a high-level promise (₹3000 pension) found in standard books with granular operational details (entry age, family definition) found in official FAQs. The difficulty lies in the subtle numeric distortion (21 vs 18) and the inclusion of 'unmarried daughters' to test your knowledge of actuarial liabilities.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Is the entry age for enrolment in the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme 21 to 40 years?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) 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."
Why this source?
  • The passage explicitly states the scheme's entry age range as 18 to 40 years.
  • It repeats the eligibility as 'age group of 18-40 years', directly contradicting a 21-40 entry-age claim.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Strength: 5/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why relevant

This snippet states PM-SYM is for unorganised sector workers aged 18-40, giving a specific age-range pattern for the scheme.

How to extend

A student could use this as a baseline to doubt a 21–40 claim and check official scheme documents or notifications to confirm whether lower limit is 18 or 21.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
Strength: 4/5
“• 3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): It provides 1-year term life insurance of ₹2 lakh to bank account holders (in the age group of 18-50 years) for a premium of ₹330 per annum per subscriber. • 4. Atal Pension Yojana (APY): Under APY, a subscriber (in the age group of 18-40 years) will receive fixed monthly pension in the range of ₹1,000 to ₹5,000 after completing 60 years of age depending on the contributions made by the subscriber. Kisan Credit Card Scheme (KCC), introduced in 1998, is a tool for providing cash credit facility to the tenant farmers, oral lessees and share croppers.”
Why relevant

Shows a pattern that several pension/retirement-related government schemes (Atal Pension Yojana, PMJJBY) commonly use 18 as the lower enrolment age and sometimes 40 as an upper bound for contributory schemes.

How to extend

Use this recurring 18–40 pattern across schemes to infer that PM-SYM is more likely to follow 18 as the entry age rather than 21, and verify against authoritative sources.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
Strength: 3/5
“• Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, it is a national mission for Financial Inclusion. It seeks to provide access to basic financial services through banks. Over 34 crore accounts have been opened under PMJDY. • Pradhan Mantri Suraksha Bima Yojana (PMSBY): It provides a renewable 1-year accidental death cum disability cover of ₹2 lakh to all subscribing bank account holders (in the age group of 18-70 years) at a minimal premium of ₹12 per annum per subscriber.”
Why relevant

Gives another example (PMSBY) where the age-band starts at 18, reinforcing that many social-financial schemes start eligibility at 18.

How to extend

Combine this general rule (schemes often start at 18) with the PM-SYM mention in snippet 1 to reason that 21 is an unlikely lower bound and that checking primary government notifications would resolve the discrepancy.

Statement 2
Are contributions under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme age-specific (i.e., contribution amount varies by beneficiary age)?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"* Monthly contribution ranges from Rs.55 to Rs.200 depending upon the entry age of the beneficiary. *"
Why this source?
  • Official government source explicitly states the monthly contribution varies by entry age.
  • Provides a specific contribution range tied to beneficiary entry age (Rs.55 to Rs.200).
Web source
Presence: 4/5
"Early enrollment maximises benefits through lower monthly contributions and longer accumulation periods"
Why this source?
  • Explains that early enrollment leads to lower monthly contributions, implying contribution amount depends on entry age.
  • Directly links entry age to contribution impact (earlier entry → lower contributions).
Web source
Presence: 3/5
"This contribution increases as the subscriber grows old."
Why this source?
  • Notes that the government's matching contribution changes as the subscriber ages, indicating contributions are time/age-related.
  • Supports the idea that contribution dynamics vary over the lifecycle of the beneficiary.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Strength: 5/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why relevant

States PM-SYM is for beneficiaries aged 18–40 and says beneficiaries pay a 'prescribed monthly contribution' with equal central government contribution — giving eligibility age and that contributions are prescribed.

How to extend

A student could look for the scheme's prescribed contribution schedule (often published as a table) to see whether 'prescribed' contributions differ by entry age.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
Strength: 4/5
“• 3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): It provides 1-year term life insurance of ₹2 lakh to bank account holders (in the age group of 18-50 years) for a premium of ₹330 per annum per subscriber. • 4. Atal Pension Yojana (APY): Under APY, a subscriber (in the age group of 18-40 years) will receive fixed monthly pension in the range of ₹1,000 to ₹5,000 after completing 60 years of age depending on the contributions made by the subscriber. Kisan Credit Card Scheme (KCC), introduced in 1998, is a tool for providing cash credit facility to the tenant farmers, oral lessees and share croppers.”
Why relevant

Describes Atal Pension Yojana (APY) where pension after 60 depends on contributions, and APY has an 18–40 entry age band — illustrating that pension schemes sometimes set contributions to achieve age-linked pension targets.

How to extend

Use the APY model (where contribution schedules vary by desired pension/entry age) as a template: check whether PM-SYM publishes a contribution table that varies by beneficiary age to reach its ₹3,000 pension.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
Strength: 4/5
“• Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, it is a national mission for Financial Inclusion. It seeks to provide access to basic financial services through banks. Over 34 crore accounts have been opened under PMJDY. • Pradhan Mantri Suraksha Bima Yojana (PMSBY): It provides a renewable 1-year accidental death cum disability cover of ₹2 lakh to all subscribing bank account holders (in the age group of 18-70 years) at a minimal premium of ₹12 per annum per subscriber.”
Why relevant

Shows other government social-protection schemes (PMSBY, PMJJBY) specify age-eligibility bands while giving a single premium amount — an example where contribution is not age-tiered despite age limits.

How to extend

Compare PM-SYM to these schemes: if PM-SYM follows the same pattern, its contribution may be a single fixed monthly amount for all eligible ages; check official scheme rules for confirmatory tables.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > Pradhan Mantri Jeevan Jyoti Bima Yojana > p. 427
Strength: 3/5
“Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life ø insurance scheme in India, launched in 2015.”
Why relevant

Mentions PMJJBY as a government-backed insurance with an age band, reinforcing that several flagship schemes set age limits but use fixed premiums.

How to extend

A student can infer that age-banded eligibility doesn't necessarily imply age-varying contributions and should therefore inspect PM-SYM documentation for either a fixed contribution or an age-based schedule.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.14 Pradhan Mantri FasalBima Yojana (PMFBY) > p. 321
Strength: 3/5
“"Pradhan Mantri FasalBima Yojana" (PMFBY) is being implemented from Karif season of 2016. The following are the salient features of the PMFBY scheme: - • Only one premium rate for each season for all food grains, oilseeds and pulses removing all variations in rates across crops and districts within a season. Kharif - 2% and Rabi - 1.5%. For horticulture and cotton crops, the premium may go up to 5%• So, farmers premium is fixed while Government (Centre and States equally) bears the remaining financial burden of the premium• The farmers get full insurance cover.”
Why relevant

Describes PMFBY using a single premium rate across crops and districts, illustrating a policy pattern where programs sometimes fix contribution/premium rates to simplify administration.

How to extend

Use this administrative-principle example to hypothesize PM-SYM might adopt a uniform contribution rate; then check PM-SYM's official contribution tables to accept or reject that hypothesis.

Statement 3
Does each subscriber under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme receive a minimum pension of ₹3,000 per month after attaining the age of 60 years?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Presence: 5/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why this source?
  • Explicitly describes PM-SYM as a voluntary contributory pension for unorganised workers with government matching contribution
  • Directly states that in return a minimum monthly pension of ₹3,000 is given after 60 years of age
  • Includes eligibility age-band and income cap, linking subscriber status to entitlement
Statement 4
Under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme, is family pension applicable to the spouse and unmarried daughters?
Origin: Weak / unclear Fairness: Borderline / guessy
Indirect textbook clues
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
Strength: 5/5
“(by the Ministry of Labour & Employment) Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) - It is a voluntary and contributory pension scheme to benefit unorganised sector workers (18-40 years old) whose monthly income is ₹15,000 or below. The beneficiary has to pay prescribed monthly contribution and the central government provides equal contribution. In return, minimum monthly pension of ₹3,000 is given after 60 years of age. National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons - It is again a voluntary and contributory pension scheme for traders, shopkeepers and self-employed persons (18-40 years old) having an annual turnover not exceeding ₹1.5 crore and who are not a member of EPFO/ESIC/NPS/PM-SYM or an income taxpayer.”
Why relevant

Gives the core design of PM‑SYM as a voluntary contributory pension that pays a minimum monthly pension to the beneficiary after age 60.

How to extend

A student could infer that because PM‑SYM specifies a single pensioner benefit, they should check official rules for any separate 'family pension' or survivor benefit provisions.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.5 PM – KISAN > p. 308
Strength: 4/5
“• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme is effective from 1.12.2018• It is a Central Sector scheme with 100% funding from Government of India• Under the Scheme an income support of Rs.6000/- per year is provided to all eligible farmer families across the country in three equal instalments of Rs.2000/- every four months• Definition of family for the Scheme is husband, wife and minor children• The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments• Some farmers have been excluded from this scheme for example, employees of central and state government, PSU employees, pensioners etc.• The fund is directly transferred to the bank accounts of the beneficiaries”
Why relevant

Shows that other central schemes (PM‑KISAN) explicitly define who constitutes the 'family' (husband, wife and minor children), indicating schemes often define family/beneficiary scope in their own rules.

How to extend

One could use this pattern to look for a PM‑SYM-specific definition of 'family' or 'dependent' to judge whether spouse and unmarried daughters qualify.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
Strength: 4/5
“• 3. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): It provides 1-year term life insurance of ₹2 lakh to bank account holders (in the age group of 18-50 years) for a premium of ₹330 per annum per subscriber. • 4. Atal Pension Yojana (APY): Under APY, a subscriber (in the age group of 18-40 years) will receive fixed monthly pension in the range of ₹1,000 to ₹5,000 after completing 60 years of age depending on the contributions made by the subscriber. Kisan Credit Card Scheme (KCC), introduced in 1998, is a tool for providing cash credit facility to the tenant farmers, oral lessees and share croppers.”
Why relevant

Describes Atal Pension Yojana (APY) as a defined contributor pension scheme where benefits depend on contributions and plan rules.

How to extend

Use the analogy that contributory pension schemes commonly have scheme-specific rules about survivor/family pension—so check PM‑SYM rules for survivor benefit clauses.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
Strength: 3/5
“• Pradhan Mantri Jan Dhan Yojana (PMJDY): Launched in 2014, it is a national mission for Financial Inclusion. It seeks to provide access to basic financial services through banks. Over 34 crore accounts have been opened under PMJDY. • Pradhan Mantri Suraksha Bima Yojana (PMSBY): It provides a renewable 1-year accidental death cum disability cover of ₹2 lakh to all subscribing bank account holders (in the age group of 18-70 years) at a minimal premium of ₹12 per annum per subscriber.”
Why relevant

Mentions other social protection products (PMSBY) that provide specific nominee/beneficiary payouts, illustrating that benefits to family members are determined by scheme terms.

How to extend

A student can reasonably conclude that family pension under PM‑SYM, if any, would be explicitly specified and should be verified in the scheme document.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 14: Service Sector > Pradhan Mantri Jeevan Jyoti Bima Yojana > p. 427
Strength: 3/5
“Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life ø insurance scheme in India, launched in 2015.”
Why relevant

PMJJBY is cited as a government-backed life insurance—another example where entitlement to survivors depends on scheme conditions rather than a universal rule.

How to extend

This reinforces checking PM‑SYM’s official provisions to see whether spouse and unmarried daughters are covered as survivors.

Pattern takeaway: UPSC consistently swaps '18' with '21' in scheme eligibility questions. If a scheme is for 'workers' or 'financial inclusion', the entry age is almost always 18 (legal adulthood). 21 is usually reserved for marriage-related or specific graduate-level criteria.
How you should have studied
  1. [THE VERDICT]: Trap. Statement 1 distorts the standard '18-40' age band to '21-40'. Statement 4 expands 'Family' to daughters, which is incorrect for this specific low-cost scheme.
  2. [THE CONCEPTUAL TRIGGER]: Social Security for Unorganised Sector (Ministry of Labour & Employment).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Age & Benefit Matrix': PM-SYM (18-40, ₹3000 fixed); APY (18-40, ₹1000-5000 variable); PMJJBY (18-50, Life Cover); PMSBY (18-70, Accidental Cover). Note the 'Spouse Only' clause for family pension in PM-SYM vs. broader definitions in formal sector schemes.
  4. [THE STRATEGIC METACOGNITION]: When reading scheme rules, apply the 'Liability Filter'. Does the government promise to pay children? Usually no, because that extends fiscal liability indefinitely. For mass schemes, benefits are typically restricted to the contributor and spouse to keep premiums low.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Age eligibility bands in social security schemes
💡 The insight

Several national schemes define specific age bands (for enrolment or cover), which determine who can join and when benefits begin.

High-yield for UPSC because questions frequently ask scheme features and target groups; mastering age bands helps compare schemes, assess targeting, and craft policy recommendations on coverage and demographic prioritisation.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > Recent Major Initiatives to Improve Financial Inclusion Are > p. 239
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
🔗 Anchor: "Is the entry age for enrolment in the Pradhan Mantri Shram Yogi Maan-dhan (PM-SY..."
📌 Adjacent topic to master
S1
👉 Voluntary contributory pension schemes for the unorganised sector
💡 The insight

PM-SYM is a voluntary, contributory pension scheme for unorganised workers with government matching contributions and a defined pension payout at retirement.

Important for questions on social protection design and fiscal implications; understanding voluntary contributory models connects to topics on welfare financing, informal sector coverage, and pension reform debates.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
🔗 Anchor: "Is the entry age for enrolment in the Pradhan Mantri Shram Yogi Maan-dhan (PM-SY..."
📌 Adjacent topic to master
S1
👉 Income/turnover thresholds as eligibility criteria
💡 The insight

Schemes use monetary caps (monthly income or annual turnover) to define beneficiary eligibility and exclude higher-earning groups.

Exam-relevant for analysing inclusion/exclusion trade-offs in scheme design, fiscal targeting, and administrative feasibility; useful when evaluating who benefits from a programme and policy equity.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
🔗 Anchor: "Is the entry age for enrolment in the Pradhan Mantri Shram Yogi Maan-dhan (PM-SY..."
📌 Adjacent topic to master
S2
👉 Age-based eligibility in social security schemes
💡 The insight

PM-SYM specifies an enrolment age band (18–40 years), so understanding age-bands is essential to scheme design and targeting.

High-yield for UPSC: many welfare schemes use age bands to determine eligibility and administration. Mastering this helps answer questions on social policy targeting, demographic coverage, and implementation challenges. It links to topics on welfare economics, population policy, and public administration.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
🔗 Anchor: "Are contributions under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme ..."
📌 Adjacent topic to master
S2
👉 Contributory pension models with government matching
💡 The insight

PM-SYM requires a prescribed monthly contribution from the beneficiary with an equal contribution from the central government, exemplifying matching-contribution design.

Important for policy analysis questions: comparing financing models (contributory vs non-contributory) clarifies fiscal implications and beneficiary incentives. Useful when evaluating scheme sustainability, budgetary impact, and behavioural effects on informal workers.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
🔗 Anchor: "Are contributions under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme ..."
📌 Adjacent topic to master
S2
👉 Pension payout structure: fixed pension vs contribution-linked pension
💡 The insight

PM-SYM promises a fixed minimum monthly pension (₹3,000) after 60, while other schemes (e.g., APY) show pensions that vary with contributions — understanding both models is crucial.

Valuable for UPSC: distinguishes benefit-design choices (defined-benefit vs defined-contribution) and their trade-offs for fiscal risk, adequacy of support, and incentive effects. Helps answer comparative questions on social security schemes and reforms.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
🔗 Anchor: "Are contributions under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme ..."
📌 Adjacent topic to master
S3
👉 Voluntary contributory pension model
💡 The insight

PM-SYM operates as a voluntary scheme where subscribers pay monthly contributions matched by the central government to secure a defined pension benefit.

High-yield for UPSC questions on social security policy design: explains how contribution-sharing affects fiscal burden and beneficiary incentives. Connects to broader topics like pension reform, welfare financing, and comparative schemes (e.g., APY). Enables analysis questions on scheme sustainability and design trade-offs.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > by the Ministry of Labour & Employment) > p. 393
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 8: Financial Market > 7.54 Indian Economy > p. 240
🔗 Anchor: "Does each subscriber under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) sche..."
🌑 The Hidden Trap

Exit Provisions: If a subscriber exits PM-SYM within less than 10 years, they receive only their share of contribution with savings bank interest rate (not the accumulated fund interest).

⚡ Elimination Cheat Code

The 'Actuarial Simplicity' Hack. Statement 4 includes 'unmarried daughters'. In a low-premium scheme (starting at ₹55/month), covering children creates complex, long-term liabilities that require massive funding. Logically, a basic pension scheme will only cover the Spouse (50% pension) to limit the government's actuarial risk. Eliminate options with Statement 4.

🔗 Mains Connection

Mains GS-3 (Inclusive Growth) & GS-2 (Welfare Schemes): PM-SYM represents a shift towards 'Contributory Social Security' rather than fully state-funded welfare, highlighting the fiscal challenge of India's demographic transition and the ageing unorganised workforce.

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SIMILAR QUESTIONS

IAS · 2018 · Q78 Relevance score: 3.65

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements : 1. It is the flagship scheme of the Ministry of Labour and Employment. 2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy. 3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework. Which of the statements given above is/are correct ?

IAS · 2016 · Q21 Relevance score: 3.11

With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements : 1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. Which of the statements given above is/are correct?

CDS-I · 2021 · Q73 Relevance score: 2.50

Which of the following statements about the Pradhan Mantri Gram Sadak Yojana are correct ? 1. It is part of Government of India’s poverty reduction strategy. 2. It is a centrally sponsored scheme for rural development. 3. It provides connectivity in rural areas. Select the correct answer using the code given below :

CDS-I · 2021 · Q109 Relevance score: 1.24

Which of the following is/are social security scheme(s) ? 1. Atal Pension Yojana 2. Pradhan Mantri Jeevan Jyoti Bima Yojana 3. Pradhan Mantri Suraksha Bima Yojana Select the correct answer using the code given below: