What is National Pension Scheme for traders and self-employed persons?

The National Pension Scheme for Traders and Self Employed Persons was launched by Prime Minister Narendra Modi on September 12, 2019 at Ranchi, Jharkhand. The pension scheme is for the shopkeepers and retail traders and self-employed persons with an annual turnover not exceeding Rs 1.5 crore.

The eligible shopkeepers and retail traders will be able to enroll themselves under the scheme through 3.50 lakh Common Service Centers (CSCs) across the country. They can visit their nearest CSCs to get enrolled under the scheme. The beneficiaries will also be able to self-enroll by visiting the scheme’s online portal -www.maandhan.in/vyapari.

Enrollment Process: Key Details

1. Documents: The beneficiary will be required to carry an Aadhaar card and a saving bank or Jan-Dhan Account passbook.
2. Age limit: The beneficiary should be within the age of 18-40 years.
3. GSTIN: GSTIN is required only for those with turnover above Rs. 40 lakhs.
4. Free entry: The enrolment under the scheme will be free of cost for the beneficiaries.
5. Self-certification: The enrolment is based upon self-certification.

National Pension Scheme for Traders: What is it?

The pension scheme is a voluntary and contributory scheme for those aged between 18 and 40 years.

The minimum assured pension under the scheme will be a monthly pension of Rs 3,000 on attaining the age of 60 years.

The beneficiary should not be income taxpayer and also not a member of EPFO/ESIC/NPS (Govt.)/PM-SYM.

While 50 percent share of the monthly contribution will be given by the Union Government, the remaining 50 percent contribution shall be made by the beneficiary.

The monthly contribution has been kept low to make it affordable. The beneficiary will have to contribute as little as Rs.100 per month at a median entry age of 29 years.

Background

The Union Government has approved the National Pension Scheme for Traders and Self Employed Persons to acknowledge the notable contribution of shopkeepers, retail traders and self-employed persons.

Around 3 crore retailers across India are expected to benefit from the new pension scheme. The scheme will aim to enroll 25 lakh subscribers in 2019-20 and 2 crore subscribers by 2023-2024. This pension scheme is one of the top priorities of Modi Government 2.0.