The National Pension Scheme for Traders and Self Employed Persons is a voluntary and contributory pension scheme introduced by the Ministry of Labour and Employment. Designed to provide old age protection and social security to small-scale traders and retailers, the scheme caters specifically to self-employed individuals such as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, real estate brokers, and owners of small hotels, restaurants, and similar ventures. The scheme aims to secure the financial future of these traders, who contribute significantly to the unorganized sector and the nation’s GDP.
Benefits
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Assured Pension:
Upon reaching the age of 60, beneficiaries are entitled to a minimum assured monthly pension of ₹3,000. -
Family Pension:
In the event of the beneficiary’s death, the spouse is eligible to receive 50% of the pension as a family pension. This family pension benefit is exclusively applicable to the spouse. -
Contributory Savings:
Applicants aged between 18 and 40 are required to make monthly contributions ranging from ₹55 to ₹200 until they attain the age of 60. Upon maturity, the pension is deposited monthly into the beneficiary’s pension account. -
Disability Benefit:
If a beneficiary becomes permanently disabled before reaching 60 years and is unable to continue contributions, their spouse may either continue with the scheme by paying the applicable contributions or exit the scheme, receiving the share of contributions with interest. -
Exit Provisions:
- If a beneficiary exits the scheme within less than 10 years from joining, only their contribution is refunded with interest at the savings bank rate.
- If a beneficiary exits after 10 years but before reaching 60, they receive their contributions along with accumulated interest, whichever is higher.
- Upon the death of both the beneficiary and their spouse, the remaining corpus is returned to the pension fund.
Eligibility
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Applicant Profile:
The scheme is targeted at self-employed individuals including shop owners, retail traders, and other vyaparis. -
Age Criteria:
Applicants must be between 18 to 40 years old at the time of enrollment. -
Business Turnover:
The annual turnover of the applicant’s business should not exceed ₹1.5 crores. -
Exclusions:
- Applicants covered under any National Pension Scheme contributed by the Central Government or members of EPFO/NPS/ESIC are not eligible.
- Income taxpayers, and individuals enrolled under Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana are excluded.
Application Process
Online – Via Common Service Centers (CSCs)
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Visit a CSC Center:
Eligible applicants must visit their nearest CSC center. -
Prepare Required Documents:
Ensure you have your Aadhaar Card and Savings/Jan Dhan Bank Account details (bank passbook, cheque leaf/book, or bank statement with IFSC code) available. -
Initial Contribution:
An initial contribution amount is paid in cash to the Village Level Entrepreneur (VLE). -
Online Registration:
- The VLE will enter your Aadhaar number, name, and date of birth for authentication.
- You will be required to provide additional details including bank account details, mobile number, email address, GSTIN (if applicable), annual turnover, spouse details (if any), and nominee details.
- Self-certification for eligibility conditions is completed, and the system auto-calculates your monthly contribution based on your age.
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First Subscription Payment:
You will then pay the first subscription amount in cash to the VLE. -
Auto Debit Mandate:
An Enrollment cum Auto Debit mandate form will be printed, signed by you, scanned, and uploaded to the system. -
Completion:
A unique Vyapari Pension Account Number (VPAN) will be generated, and a Vyapari Card will be printed as proof of enrollment.
Documents Required
- Aadhaar Card.
- Savings/Jan Dhan Bank Account details along with IFSC Code (as evidenced by a bank passbook, cheque leaf, or bank statement).
Frequently Asked Questions
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Who can apply to this scheme?
Self-employed traders and retail owners, including shop owners, vyaparis, and other similar professionals, whose annual business turnover does not exceed ₹1.5 crores. -
How much pension would be received through this scheme and at what age?
Beneficiaries are entitled to a minimum assured monthly pension of ₹3,000 upon reaching the age of 60. -
How can I enroll for this scheme?
Enrollment is done online via Common Service Centers (CSCs) by following the prescribed registration and contribution process. -
Is the Proof of Age/DOB a required document?
Yes, age verification is part of the registration process through Aadhaar details. -
What are the exit provisions?
- Exiting before 10 years from joining returns only your contributions with interest.
- Exiting after 10 years but before age 60 returns contributions along with accumulated interest at the higher rate between actual earned interest or the savings bank rate.
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What would be the role of LIC?
LIC is not involved in this scheme; it is managed by the Ministry of Labour and Employment. -
Is auto-debit facility available?
Yes, an auto-debit mandate is part of the online registration process. -
Is there a fee for enrollment in this scheme?
There is no fee for enrollment; however, monthly contributions are required based on the beneficiary’s age. -
Is there a provision for family pension?
Yes, in case of the beneficiary’s death, the spouse is entitled to receive 50% of the pension as a family pension. -
If the payment of the subscription is stopped, can the beneficiary re-join or revive the application?
Specific guidelines regarding stopping and rejoining the scheme are outlined in the official documentation. Generally, continued contributions are required to maintain the pension account.