Skip to content

Invest & Trade Smarter with Fisdom App

Get a FREE Fisdom account for Stocks, Mutual Funds & more, all in one place

Download Fisdom app

PM Garib Kalyan Yojana (PMGKY)

Written by - Akshatha Sajumon

February 7, 2022 4 minutes

The government launched Pradhan Mantri Garib Kalyan Yojana (PMGKY) in 2016. It came into force as part of the Taxation Laws Act 2016 (second amendment). 

Earlier the main purpose of the scheme was to check that tax evaders revealed the money which was not in accounts. It was decided to utilize the deposited black money for the welfare of the poor people. The duration of the scheme was from December 2016 to March 2017.

However, in 2020, the PM Garib Kalyan Yojna scheme was extended. This time it included the relief package of Rs 1.70 lakh crore for supporting the poor during the pandemic. The announcement was made by the Union Finance Minister, Smt Nirmala Sitharaman, shortly after the lockdown was implied. 

The scheme also provided medical insurance coverage of Rs.50 lakh per person to around 20 lakh COVID-19 warriors.  

Benefits of the scheme for the poor

The benefits of Pradhan Mantri Garib Kalyan Yojana (PMGKY) are in below two ways:

  • Food security 
  • Direct Benefit Transfer (DBT)

Let us discuss this in detail.

Measures under food security

  • This plan is termed as Pradhan Mantri Gareeb Kalyan Anna Yojana. Under this scheme, around 80 crore people will be provided with additional 5 kg rice or wheat per person. Also, households will get 1 kg of the pulse of their choice. It will be distributed in two installments.

Direct Benefit Transfer

The finance minister announced certain specific measures in this plan:

  • The benefit to Farmers: The scheme will cover around 8.69 crore farmers who will receive an additional amount of Rs 2,000 as a front-load under the PM Kisan Samman Nidhi program. By the 1st week of April, the amount will get transferred to the farmer’s account.
  • Increase in the daily wages through MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): There will be an increment in Rs 20 per day. This will benefit a large number of families.
  • Poor Senior Citizen/ Widows/ Disable people:  An ex-gratia of Rs 1,000 is announced for poor senior citizens, widows, and disabled people. 
  • Women had a Dhan account: Around 20 crore women will be provided an ex-gratia amount of Rs 500 per month.
  • Self-Help Groups (NRLM): With this scheme, 63 lakh women SHGs under National Rural Livelihood Mission (NRLM) will benefit. It will cover seven crore households, who can avail of collateral-free loans up to Rs 20 lakh.
  • Organized Sector Workers under EPFO: Under PMGKY, it is decided that the EPF contribution will be paid to both employer and employee, which comes out to 24% in total. This plan will be fruitful for 80 lakh employees and 4 lakh establishments. Establishments have up to 100 employees, and where 90% of those employees draw a salary of less than Rs 15,000 per month can benefit from this scheme. This amendment is going to help around 4.8 crores of registered EPFO workers.
  • Construction Workers: 3.5 crores registered building and construction workers will get a fund of Rs 31,000 crore. This is as per the guidelines of the Central Government to the state governments. It is for the security of the workers at construction sites.
  • District Mineral Fund: It is directed by the central government that the various states will utilize the district mineral fund for screening of the covid, testing the people, and other measures to overcome covid.
  • Free LPG cylinders: This is provided to 8.3 crores BPL families that hold LPG connections under the Ujjwala scheme.

FAQs on PM Garib Kalyan Yojana (PMGKY)

What kind of cover does the scheme provide?

It covers an accidental death because of COVID-19 duty and death due to COVID-19.

Do individuals need to enroll in the scheme?

No, individuals do not need to enroll in the scheme.

What is the age limit for health workers under this scheme?

There is no age limit for them.

Are expenses incurred due to quarantine or treatment covered under the scheme?

No, such expenses are not covered under this scheme.


PM Garib Kalyan Yojana (PMGKY) has proved beneficial in uplifting the weaker section and improving its financial status. It is the most detailed poverty alleviation program in India with useful features. The government modifying positive changes in the scheme will help the poor on a larger scale. The results are also visible, and various sections of the society are tasting its benefits.

Related Articles

Download one of India's best wealth management apps

Join more than one million investors and take control of your wealth

Download app