10 Oct 2019

National pension scheme for Traders, Self-employed persons

Source: Press Information Bureau

Recently the Prime Minister of India launched the National Pension Scheme for Traders and Self Employed Persons, a pension scheme for the Vyaparis (shopkeepers/retail traders and self-employed persons) with an annual turnover not exceeding Rs 1.5 crore.

Key highlights

  • 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.
  • Eligibility conditions:
    • 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 beneficiary should not be an income taxpayer and also not a member of EPFO/ESIC/NPS (Govt.)/PM-SYM.
  • The enrolment under the scheme is free of cost for the beneficiaries. 
  • The enrolment is based upon self-certification.
  • Contribution & benefits: 
    • 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 Central Government shall give 50% share of the monthly contribution and the 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.
  • An estimated 3 crore Vyaparis in the country are expected to be benefitted under the pension scheme.