PM Kisan Maan-Dhan Yojana (PM-KMY): Pension for Small Farmers

Last updated: 2026-11-13 · MockMentor

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is a voluntary, contributory pension scheme for small and marginal farmers. A farmer who joins between 18 and 40 pays a small monthly amount, the Centre pays an equal amount, and the farmer gets an assured pension of ₹3,000 a month from age 60. It was launched on 12 September 2019 from Ranchi.

In one line: old-age security for small farmers, where the Government matches every rupee the farmer saves.

At a glance

Item Details
Launched 12 September 2019
Type Central Sector Scheme
Entry age 18 to 40 years
Eligible Small and marginal farmers with up to 2 hectares
Contribution ₹55 to ₹200 a month, by entry age (₹100 at age 29)
Government share Equal matching contribution
Pension ₹3,000 a month from 60
Family pension 50% (₹1,500) to the spouse
Fund manager Life Insurance Corporation of India (LIC)

Who cannot join

  • Farmers already covered by the National Pension System (NPS), the Employees' State Insurance Corporation (ESIC) or similar statutory schemes
  • Members of the PM Shram Yogi Maan-Dhan or the national pension scheme for traders
  • The groups excluded under PM-KISAN, such as income tax payers and registered professionals

Key features

  • Farmers can let their PM-KISAN instalments pay the contribution directly.
  • Exit before 10 years: the farmer gets back their own contribution with savings bank interest. The Government's share is not returned.
  • Exit after 10 years: own contribution with the higher of the fund's earnings or savings bank interest.
  • No commutation (lump-sum withdrawal) of the pension.

Facts to remember

  • Pension ₹3,000, family pension ₹1,500.
  • LIC is the pension fund manager.
  • Same design as PM Shram Yogi Maan-Dhan for unorganised workers.

Possible exam questions

  1. Why do Indian farmers need a separate old-age security scheme? Assess PM-KMY's design.
  2. Low enrolment is a common problem in voluntary pension schemes. Suggest ways to raise coverage.

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