19 Sep 2019

Pradhan Mantri Kisan Maan Dhan Yojana3 min read

Source: Ministry of Agriculture & Farmers Welfare

It is the old-age protection and social security of  Small and Marginal Farmers (SMFs) in the country. It is a voluntary and contributory pension scheme for the entry age group of 18 to 40 years. PMKMDY is effective from the 9th of August 2019.

Key Features of the scheme

  • It is voluntary and contributory for farmers in the entry age group of 18 to 40 years and a monthly pension of Rs. 3000/- will be provided to them on attaining the age of 60 years.
  • Matching Contribution by the Government of India
  • The Scheme shall secure the lives of 5 Crore Small and Marginal Farmers
  • The farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in the Pension Fund till they reach the retirement date i.e. the age of 60 years
  • The monthly contributions will fall due on the same day every month as an enrolment date. The beneficiaries may also choose an option to pay their contributions on a quarterly, 4-monthly or half-yearly basis. Such contributions will fall due on the same day of such period as the date of enrollment
  • The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund.
  • The Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension payout.
  • In case of the death of the farmer before retirement date, the spouse may continue in the scheme by paying the remaining contributions till the remaining age of the deceased farmer. If the spouse does not wish to continue, the total contribution made by the farmer along with interest will be paid to the spouse. If there is no spouse, then total contribution along with interest will be paid to the nominee.
  • If the farmer dies after the retirement date, the spouse will receive 50% of the pension as Family Pension. After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund.
  • The beneficiaries may opt voluntarily to exit the Scheme after a minimum period of 5 years of regular contributions. On exit, their entire contribution shall be returned by LIC with an interest equivalent to prevailing saving bank rates.
  • The farmers, who are also beneficiaries of the PM-Kisan Scheme, will have the option to allow their contribution debited from the benefit of that Scheme directly.
  • In case of default in making regular contributions, the beneficiaries are allowed to regularize the contributions by paying the outstanding dues along with prescribed interest. Until 1 month from the first unpaid contribution, no late fee would be charged. Three payment cycles demand would be raised for payment of contribution without any interest.


  • For Small and Marginal Farmers
  • Entry age between 18 to 40 years
  • Cultivable land up to 2 hectares as per land records of the concerned State/UT

Who are not eligible

  • SMFs covered under any other statuary social security schemes such as the National Pension Scheme (NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme, etc.
  • Farmers who have opted for Pradhan Mantri Shram Yogi Maandhan Yojana and Pradhan Mantri Vyapari Maandhan administered by the Ministry of Labour & Employment.
  • Further, the following categories of beneficiaries of higher economic status shall not be eligible for benefits under the scheme:
    1. All Institutional Landholders
    2. Former and present holders of constitutional posts
    3. Former and present Ministers/ State Ministers and former/present Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations, former and present Chairpersons of District Panchayats.
    4. All serving or retired officers and employees of Central/ State Government Ministries/ Offices/Departments and their field units, Central or State PSEs and Attached offices/ Autonomous Institutions under Government as well as regular employees of the Local Bodies (Excluding Multi Tasking Staff / Class IV/Group D employees).
    5. All Persons who paid Income Tax in the last assessment year.(f) Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out profession by undertaking practice.

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