Pradhan Mantri Laghu Vyapari Mandhan Yojana(PMLVMY)

Latest Update: Scheme Name Change

The scheme was originally notified on 22 July 2019 as the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana 2019 (PM-LVM). According to the Ministry of Labour & Employment's August 2019 progress report, the word "Laghu" was later removed from the scheme's name following advice from the Prime Minister's Office (PMO).

The scheme was formally launched on 12 September 2019 as the National Pension Scheme for Traders and Self Employed Persons. Subsequent government records also refer to it as the National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons, identifying PM-LVM as its former name.

For the latest information on eligibility, pension benefits, monthly contributions and the application process, click here to read the updated scheme details.

Scheme Introduction: A Brief Overview

Running a small shop or business often means managing daily expenses while also thinking about financial security in old age. For traders, shopkeepers, and self-employed persons who may not have access to a regular pension system, the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PM-LVM) was introduced as a voluntary and contributory pension scheme. The scheme provides a minimum assured pension of ₹3,000 per month after the age of 60. Eligible persons between 18 and 40 years of age can join by making a monthly contribution of ₹55 to ₹200, depending on their entry age, while the Central Government contributes an equal matching amount.

The scheme was launched on 12 September 2019 with the objective of providing old-age protection and social security to small traders, shopkeepers, and self-employed persons. It was implemented under the Ministry of Labour & Employment, with enrolment facilitated through Common Service Centres (CSCs). The scheme was meant for eligible Indian citizens whose annual business turnover did not exceed ₹1.5 crore and who met the prescribed exclusion conditions, such as not being an income-tax payer or a member of EPFO, ESIC, NPS, or PM-SYM.

One of the key features of PM-LVM was the equal contribution made by the Government. The subscriber's monthly contribution was matched by the Central Government, helping build the pension corpus over the contribution period. After attaining 60 years of age, the subscriber became eligible for the minimum assured pension of ₹3,000 per month. The scheme also provided family protection, as the spouse was entitled to 50% of the pension as family pension after the subscriber's death while receiving the pension.

Eligible applicants could enrol through a Common Service Centre (CSC) or use the self-enrolment facility available through the Maandhan system. Aadhaar, bank account details with IFSC, and a mobile number were among the basic details required for enrolment. Since the scheme was voluntary, eligible traders and self-employed persons could decide whether they wanted to participate based on the applicable contribution and pension provisions.

For readers exploring other pension options, the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM) may also be relevant. It was designed for eligible unorganised sector workers and provided a minimum assured pension of ₹3,000 per month after 60, making it a related pension scheme for comparison with PM-LVM.

Scheme Benefits

The Pradhan Mantri Laghu Vyapari Maan-dhan Yojana provides pension support to eligible traders, shopkeepers, and self-employed persons to help them plan for financial security in old age. The main benefits include:

• Eligible subscribers receive a minimum assured pension of ₹3,000 per month after reaching 60 years of age.
• The Central Government makes an equal matching contribution towards the subscriber's monthly contribution.
• Subscribers can join by making a monthly contribution ranging from ₹55 to ₹200, depending on their age at the time of joining.
• If the subscriber dies while receiving the pension, the spouse receives 50% of the pension as family pension.
• If the subscriber dies before the age of 60 after making regular contributions, the spouse can continue the scheme by paying the applicable contributions or exit according to the scheme rules.
• The scheme provides a voluntary pension option for traders, shopkeepers, and self-employed persons who meet the prescribed eligibility conditions.
• Enrolment is facilitated through Common Service Centres (CSCs), making the scheme accessible to eligible persons across the country.

These benefits were designed to help eligible small traders and self-employed persons build a basic pension safety net during their working years and receive assured pension support after reaching 60 years of age.

Monthly Contribution Under PM Laghu Vyapari Maan-dhan Yojana

The monthly contribution under the scheme depends on the age at which a person joins. Younger subscribers pay a lower monthly amount, while those entering at a later age pay a higher amount. The Central Government contributes an equal amount against the subscriber's contribution.

For example, a person joining the scheme at the age of 29 contributes ₹100 per month, while the Central Government contributes another ₹100. The combined monthly contribution is therefore ₹200. The applicable contribution continues until the subscriber reaches the pension age of 60, subject to the scheme rules.

Eligibility Requirements

The Pradhan Mantri Laghu Vyapari Maan-dhan Yojana was meant for small traders, shopkeepers, and self-employed persons who met certain age, business turnover, and social-security conditions. Before applying, applicants needed to meet the following eligibility requirements:

• The applicant must be an Indian citizen.
• The applicant must be between 18 and 40 years of age at the time of joining the scheme.
• The applicant must be a retail trader, shopkeeper, or self-employed person.
• The annual turnover of the business 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 (NPS) as specified under the scheme.
• The applicant must not be enrolled under the Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM).

Eligible applicants could enrol through a Common Service Centre (CSC) or use the available self-enrolment facility, subject to the applicable scheme rules.

Required Documents

Applicants should keep a few basic documents and details ready before enrolling in the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana. These details are used to complete the registration process through a Common Service Centre (CSC).

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

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

Steps to Apply

Eligible traders, shopkeepers and self-employed persons could enrol in the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana through two routes. They could either complete the registration with assistance from a Common Service Centre (CSC) or use the self-enrolment facility available through the Maandhan system.

Apply Through a Common Service Centre (CSC)

The CSC route was useful for applicants who preferred to complete the registration with assistance. Applicants needed to keep their Aadhaar card, savings bank or Jan Dhan account details, IFSC and mobile number ready before visiting the centre.

1. Visit a nearby Common Service Centre (CSC) with the required documents and bank details.
2. Tell the CSC operator that you want to enrol under the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PM-LVM).
3. Provide your personal, Aadhaar and bank account details to the CSC operator.
4. Complete the required Aadhaar authentication and eligibility self-declaration.
5. Confirm that your annual business turnover is within the prescribed limit and that you meet the applicable exclusion conditions.
6. Pay the first contribution at the CSC as applicable to your age at the time of joining.
7. Complete the required auto-debit mandate for subsequent monthly contributions.
8. After successful enrolment, keep your pension account details or pension card safely for future reference.

Apply Online Through the Maandhan Portal

Applicants who preferred to complete the process themselves could use the Maandhan Portal for self-enrolment under the scheme.

1. Open the Maandhan Portal and look for the self-enrolment option for the trader pension scheme.
2. Enter your mobile number and complete the OTP verification when prompted.
3. Provide the requested personal, Aadhaar, bank and eligibility details.
4. Complete the required declarations regarding your business turnover and eligibility for the scheme.
5. Enter the applicable contribution and payment details as directed on the portal.
6. Complete the enrolment process and save the acknowledgement or pension account details for future use.

Applicants who were unsure about their eligibility, contribution amount, or registration process could take assistance from a CSC before completing the enrolment. The Maandhan system also provided support channels for assistance related to enrolment.

Exit and Withdrawal Rules

The scheme also provides rules for subscribers who need to leave the pension scheme before reaching 60 years of age. The amount payable depends on how long the subscriber has remained enrolled and the circumstances of exit.

The detailed exit provisions above are based on the scheme material identified in the research brief. The research specifically notes that these detailed rules could not be independently verified on the Maandhan portal at the time of checking, so they should be cross-checked against the current scheme rules before publication.

PM-LVM vs PM-SYM

PM-LVM and PM-SYM are both Government pension schemes that provide a minimum assured pension of ₹3,000 per month after the age of 60, but they are meant for different groups. Understanding the difference helps applicants identify the pension scheme applicable to their category.

In simple terms, PM-LVM was designed for traders, shopkeepers and self-employed persons, subject to the prescribed annual turnover condition. PM-SYM was designed for eligible unorganised workers, subject to its prescribed monthly income condition. A person enrolled under PM-SYM was not eligible to enrol under PM-LVM.

Original Name of the Scheme

The pension scheme for small traders and self-employed persons was notified by the Ministry of Labour & Employment on 22 July 2019 under the name Pradhan Mantri Laghu Vyapari Maan-dhan Yojana 2019. The Ministry's August 2019 progress report states that the word "Laghu" was subsequently dropped from the title following advice from the Prime Minister's Office.

The scheme was formally launched on 12 September 2019 as the National Pension Scheme for Traders and Self Employed Persons. Government records subsequently refer to this scheme as the NPS for Traders, Shopkeepers and Self-Employed Persons and identify PM-LVM as its erstwhile name.

Relevant Links

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

Contact Information

Maandhan Department Contact

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