PM launches National Pension Scheme for Traders and Self Employed Persons

Press Information Bureau
Government of India
Ministry of Labour & Employment

12-September-2019 14:43 IST

Prime Minister launches National Pension Scheme for Traders and Self Employed Persons

The Prime Minister of India, Shri Narendra Modi launched at Ranchi today, the National Pension Scheme for Traders and Self Employed Persons, a pension scheme for the Vyaparis (shopkeepers/retail traders and self-employed persons) with annual turnover not exceeding Rs 1.5 crore. The Governor of Jharkhand Smt. Draupadi Murmu, Chief Minister of Jharkhand Shri Raghubar Das, Minister of Tribal Affairs Shri Arjun Munda, Minister of State  for Labour & Employment (I/C) Shri Santosh Kumar Gangwar and other dignitaries were also present on the occasion.  With this nation-wide launch, the facility for enrollment under the scheme has been made available to the prospective beneficiaries through 3.50 lakh Common Service Center (CSCs) across the country. In addition people can also self-enroll by visiting the portal www.maandhan.in/vyapari. The eligible Vyaparis can visit their nearest CSCs and get enrolled under the scheme. At the time of enrollment, the beneficiary is required to have an Aadhaar card and a saving bank/ Jan-dhan Account passbook only. He/ She should be within 18 to 40 years of age group. GSTIN is required only for those with turnover above Rs. 40 lakhs. The enrolment under the scheme is free of cost for the beneficiaries. The enrolment is based upon self-certification.

Government has approved National Pension Scheme for Traders and Self Employed Persons in acknowledgement of notable contribution of Vyaparis (shopkeepers/ retail traders and self-employed persons). It is a voluntary and contributory pension scheme for entry age of 18 to 40 years with a provision for minimum assured pension of Rs 3,000/- monthly on attaining the age of 60 years. The beneficiary should not be income tax payer and also not a member of EPFO/ESIC/NPS (Govt.)/PM-SYM. The Central Government shall give 50 % share of the monthly contribution and remaining 50% contribution shall be made by the beneficiary. The monthly contribution is kept low to make it affordable. For example, a beneficiary is required to contribute as little as Rs.100/- per month at a median entry age of 29 years.

This pension scheme is one of the top priorities of Prime Minister Narendra Modi’s Government in its second term. According to the Ministry’s 100-day plan, this scheme will target enrolling 25 lakh subscribers in 2019-20 and 2 crore subscribers by 2023-2024. An estimated 3 crore Vyaparis in the country are expected to be benefitted under the pension scheme.

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National Pension Scheme for Traders and Self Employed Persons Yojana is a government scheme meant for old age protection and social security of Small Scale Traders and Retailers.

Vyaparis, who are self-employed and are working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Vyaparis with similar occupations whose annual turnover does not exceed Rs 1.5 crore are eligible to get benefit under the scheme.

It is a voluntary and contributory pension scheme under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as family pension. Family pension is applicable only to spouse.

• On the maturity of the scheme, an individual will be entitled to obtain a monthly pension of Rs. 3000/-. The pension amount helps pension holders to aid their financial requirements.
• The scheme is a tribute to the workers in the Unorganized sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).
• The applicants between the age group of 18 to 40 years will have to make monthly contributions ranging between Rs 55 to Rs 200 per month till they attain the age of 60.
• Once the applicant attains the age of 60, he/ she can claim the pension amount. Every month a fixed pension amount gets deposited in the pension account of the respective individual.

Eligibility Criteria

• For self employed shop owners, retail owners and other vyaparis
• Entry age between 18 to 40 years
• Annual turnover should not exceed Rs 1.5 crore

Should not be

• Covered under any National Pension Scheme contributed by the Central Government or member of EPFO/NPS/ESIC
• An income tax payer
• Enroled under Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Labour & Employment or Ministry of Agriculture & Farmers Welfare, respectively

He/ She should possess

• Aadhaar card
• Savings Bank Account number with IFSC

Features of National Pension Scheme for Traders and Self Employed Persons