eShram Mandhan Yojana

What is eShram Mandhan Yojana?

eShram Mandhan Yojana is a government initiative that guarantees a minimum monthly pension of ₹3000 after the age of 60 to unorganized sector workers whose monthly income is ₹15,000 or below. It is meant for workers engaged in jobs like street vending, domestic work, agricultural labor, rickshaw pulling, construction work, and other informal occupations.

The scheme is jointly managed by the Ministry of Labour & Employment, Life Insurance Corporation of India (LIC), and Common Service Centres (CSCs) to ensure seamless implementation and easy accessibility. LIC acts as the pension fund manager and is responsible for disbursing the pension amount to beneficiaries.

Eligibility Criteria of eShram Mandhan Yojana

To enroll in the eShram Mandhan Yojana, the following criteria must be met:

• The applicant should be an Indian citizen working in the unorganized sector.

• Age must be between 18 and 40 years at the time of registration.

• Monthly income should not exceed ₹15,000.

• The worker should not be covered under any other government social security schemes like EPFO, ESIC, or National Pension Scheme.

• The applicant must not be an income tax payer.

• Aadhaar card and active savings bank account (including Jan Dhan accounts) are mandatory.

These criteria ensure that the scheme targets financially vulnerable and excluded informal workers.

Benefits of eShram Mandhan Yojana

The scheme offers several benefits to ensure a stable financial future for unorganized workers:

• Monthly Pension: After reaching 60 years of age, the beneficiary will receive a fixed monthly pension of ₹3000 for life.

• Family Pension: Upon the death of the subscriber, the spouse is entitled to receive 50% of the pension amount as family pension.

• Government Contribution: The government contributes equally to the subscriber’s monthly contribution on a 1:1 basis, doubling the savings.

• Affordable Contribution: The contribution amount varies depending on the age of entry, ranging from ₹55 to ₹200 per month, allowing ease of payment.

• Nomination Facility: Beneficiaries can nominate family members for pension benefits.

• No Cost Enrollment: Registration and administration are free, and no additional charges apply.

• Portability: Beneficiaries migrating to organized sector jobs can continue the scheme by paying adjusted contributions or have the option to withdraw with interest.

Contribution Structure

The monthly contribution varies with the age at which the beneficiary joins the scheme. Early enrollment reduces the monthly contribution amount. The table below shows the age-wise contribution:

The government matches this monthly contribution equally, effectively doubling the pension fund.

How to Apply for eShram Mandhan Yojana?

Enrollment is easy and accessible for all eligible workers:

• Visit the nearest Common Service Centre (CSC) with your Aadhaar card and savings bank or Jan Dhan account details.

• Submit the application online via official portals such as maandhan.in or eshram.gov.in.

• The first contribution is usually paid in cash at the CSC; subsequent contributions can be paid monthly, quarterly, or annually.

• Self-certification of age and income is sufficient; no documentary proof is required for income.

• After enrollment, contributions are auto-debited from the registered bank account to ease payments.

Important Features and Facts

• The pension starts only after the beneficiary turns 60, providing guaranteed life-long income.

• If contributions stop or are missed, subscribers can regularize their payments by paying the arrears with applicable penalties.

• The scheme is specially formulated for informal workers who otherwise lack access to pension or insurance schemes.

• LIC acts as the pension fund manager ensuring the investment and payout of pensions.

• Facilitation desks are available at LIC offices, EPFO/ESIC offices, and labor department offices for assistance.

• Customer care support is available via toll-free helpline 1800 2676 888 and online grievance portals.

Impact of eShram Mandhan Yojana

India’s unorganized sector comprises over 40 crore workers contributing almost half the country’s GDP. However, the majority lack social security coverage. eShram Mandhan Yojana is a revolutionary step addressing this gap by promoting savings and pension benefits tailored specifically to this vast workforce.

The scheme not only advances financial security for these workers in old age but also fosters social dignity and inclusion. It is inclusive with minimal documentation, flexible contributions, and family pension benefits ensuring widespread accessibility.

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