National Pension Scheme for Traders and Self Employed Persons

Scheme Introduction: A Brief Overview

Small traders, shopkeepers and self-employed individuals often rely on their businesses for their livelihood. However, planning for a regular income after retirement can be challenging, particularly for those without an employer-sponsored pension. To help address this concern, the Government of India introduced the National Pension Scheme for Traders and Self Employed Persons, which aims to provide pension security to eligible individuals in their old age.

The scheme was originally notified as the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PM-LVM) in July 2019. According to the Ministry of Labour & Employment's August 2019 progress report, the word "Laghu" was subsequently removed from the scheme's name following advice from the Prime Minister's Office. Older government records may therefore refer to it by its original name.

The scheme was officially launched on 12 September 2019 under the Ministry of Labour & Employment, Government of India. It is a voluntary, contributory pension scheme designed to help eligible traders, shopkeepers and self-employed persons build financial security for their retirement. Under the scheme, eligible participants receive a minimum assured pension of ₹3,000 per month after attaining 60 years of age, subject to the applicable conditions.

Individuals aged between 18 and 40 years can enrol in the scheme by making monthly contributions ranging from ₹55 to ₹200, depending on their age at entry. The Central Government contributes an equal amount, matching the individual's contribution towards the pension fund.

To qualify, applicants must meet the prescribed eligibility criteria, including an annual business turnover of not more than ₹1.5 crore. They must also satisfy the applicable conditions regarding income-tax payment and membership in other pension or social security schemes.

Readers looking for an alternative pension option can also explore the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM). This scheme is intended for eligible workers in the unorganised sector and offers a monthly pension of ₹3,000 after the age of 60. It can be compared with PM-LVM to understand the pension benefits available under both schemes.

Scheme Benefits

The National Pension Scheme for Traders and Self Employed Persons aims to provide retirement security to eligible small business owners and self-employed individuals. Its main benefits include:

• Monthly pension: Eligible subscribers receive a minimum assured pension of ₹3,000 per month after attaining 60 years of age, subject to scheme rules.
• Matching government contribution: The Central Government contributes an amount equal to the subscriber's monthly contribution.
• Affordable contributions: Subscribers pay between ₹55 and ₹200 per month, depending on their age when joining.
• Family pension: If the subscriber dies while receiving the pension, the spouse is entitled to 50% of the pension as family pension, according to the scheme provisions.
• Provision for death before 60: The spouse may continue the scheme by paying the applicable contributions or exit according to the prescribed rules.
• Retirement support: The scheme offers a pension option to eligible traders and self-employed individuals who may not have access to an employer-sponsored retirement plan.
• Registration assistance: Eligible applicants can seek enrolment assistance through Common Service Centres, subject to the availability of the service.

Monthly Contribution Under the Scheme

The monthly contribution depends on the subscriber's age when joining. Individuals who enrol at a younger age pay a lower amount, while those joining at an older age contribute more. The Central Government makes an equal matching contribution.

For example, a person joining at 29 years of age contributes ₹100 per month. The government adds another ₹100, making the total monthly contribution ₹200. Contributions continue according to the applicable scheme rules until the subscriber reaches the pension age.

Eligibility Requirements

Applicants must meet the prescribed age, business turnover and social security conditions to qualify for the scheme. The eligibility requirements described in the available scheme material include:

• The applicant must be an Indian citizen.
• The applicant must be between 18 and 40 years of age at the time of joining.
• The applicant must be an eligible trader, shopkeeper or self-employed person.
• The annual business turnover must not exceed ₹1.5 crore.
• The applicant must not be an income-tax payer.
• The applicant must not be a member of the Employees' Provident Fund Organisation (EPFO).
• The applicant must not be covered under the Employees' State Insurance Corporation (ESIC).
• The applicant must not be covered under the National Pension System in a category excluded by the scheme.
• The applicant must not be enrolled under the Pradhan Man
• tri Shram Yogi Maandhan Yojana (PM-SYM).

Applicants should verify the latest eligibility requirements through the official government portal before enrolling.

Required Documents

Applicants should keep the following documents and information ready before starting the registration process:

• Aadhaar card
• Savings bank account or Jan Dhan account details
• Bank account IFSC
• Mobile number
• GSTIN, where applicable under the scheme requirements

Applicants should ensure that their Aadhaar and bank account details are accurate to avoid difficulties during enrolment and subsequent contribution payments.

Steps to Apply

Eligible applicants can seek registration assistance through a Common Service Centre or check the self-enrolment facility on the official Maandhan portal.

Apply Through a Common Service Centre (CSC)

1. Visit a nearby Common Service Centre with your Aadhaar card, mobile number and bank account details.
2. Ask the operator about registration under the National Pension Scheme for Traders and Self Employed Persons.
3. Provide the required personal information and bank account details.
4. Complete the prescribed Aadhaar authentication and eligibility declaration.
5. Confirm that your business turnover and other eligibility conditions meet the scheme requirements.
6. Pay the applicable initial contribution as instructed.
7. Complete the required auto-debit authorisation for future monthly contributions.
8. Keep the enrolment acknowledgement or pension account details for future reference.

Apply Online Through the Maandhan Portal

1. Visit the official Maandhan portal.
2. Check whether the self-enrolment facility for the trader pension scheme is available.
3. Enter your mobile number and complete OTP verification, if requested.
4. Provide the requested personal, Aadhaar and bank account information.
5. Complete the eligibility declarations concerning your business and other applicable conditions.
6. Follow the portal's instructions for the contribution and payment process.
7. Save the acknowledgement or pension account details after successful enrolment.

If the relevant registration option is unavailable or you are unsure about your eligibility, contact a Common Service Centre or consult the official portal for guidance.

Exit and Withdrawal Rules

Subscribers who wish to leave the scheme before reaching 60 years of age must follow the applicable exit provisions. The amount payable depends on the circumstances and the duration of membership.

Note: The detailed exit provisions should be cross-checked against the latest official scheme rules before publication, as their current wording has not been independently confirmed here.

National Pension Scheme for Traders and Self Employed Persons vs PM-SYM

The National Pension Scheme for Traders and Self Employed Persons and the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) are separate pension schemes. Both provide for a minimum assured pension of ₹3,000 per month after 60 years of age, subject to their respective rules, but they serve different beneficiary groups.

The main distinction is the type of beneficiary each scheme is designed to cover. Eligible traders and shopkeepers should check the business turnover criteria, while eligible unorganised workers should refer to the PM-SYM eligibility requirements.

Important Links

• Ministry of Labour & Employment
• Maandhan Portal
• DBT Bharat Scheme List
• e-Shram Social Security Schemes

Contact Information

The contact details listed in the available scheme material are provided below. Please verify their current validity through the official government portal before relying on them.

• Phone: 1800 267 6888
• Email: [email protected]
• Email: [email protected]
• Address: Shram Shakti Bhawan, Rafi Marg, New Delhi – 110001, India