The National Pension Scheme for Traders and Self-Employed Persons is a government initiative to provide old-age protection and social security to small-scale shopkeepers, retail traders, and self-employed individuals.
This scheme, also known as the NPS Traders Yojana, is specifically aimed at companies with an annual turnover of less than Rs 1.5 crore.
Eligibility Criteria
To qualify for the NPS-Traders scheme, the following conditions must be met:
- Age: 18 to 40 years
- Annual turnover: Not exceeding Rs 1.5 crore
- Occupation: Shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, real estate brokers, small hotel or restaurant owners, and other similar occupations.
Scheme Features
The NPS Traders scheme is voluntary and contributory. It ensures a minimum assured pension of Rs 3000 per month after the subscriber reaches the age of 60. If the subscriber passes away, the spouse is entitled to 50% of the pension as a family pension.
Contributions and Benefits
- Monthly Contributions: Participants must contribute between Rs 55 to Rs 200 per month, depending on their age at joining.
- Pension on Maturity: Upon reaching 60, subscribers receive a fixed monthly pension of Rs 3000.
- Government Contribution: The Government of India provides a matching contribution to the scheme.
- Benefits on Disablement: If a subscriber becomes permanently disabled, the spouse can continue the scheme or exit, receiving the subscriber’s contribution with accumulated interest.
- Family Pension: If the subscriber dies before or after receiving the pension, the spouse gets 50%.
| Name of the Scheme | National Pension Scheme for Traders and Self-Employed Persons |
|---|---|
| Website | https://www.india.gov.in/ |
| Schemes Portal | NPS Traders |
| Online Self Enrollment | self enrollment online |
Exclusions
Individuals are not eligible for this scheme if they:
- Are covered under any National Pension Scheme contributed by the Central Government.
- Are members of EPFO/NPS/ESIC.
- Are income tax payers.
- Are enrolled under the Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana.
Monthly Contribution for NPS Traders
Entry age-specific monthly Contributions by the retail traders/ shopkeepers and self-employed persons: Through ‘auto-debit’ facility from his/ her savings bank account/ Jan-Dhan account from the date of joining NPS-Traders till the age of 60 years as per the chart below. The Central Government will also give equal matching contributions to his pension account.
| Entry Age | Superannuation Age | Member’s monthly contribution (Rs) | Central Govt’s monthly contribution (Rs) | Total monthly contribution (Rs) |
|---|---|---|---|---|
| A | B | C | D | (Total = C + D) |
| 18 | 60 | 55.00 | 55.00 | 110.00 |
| 19 | 60 | 58.00 | 58.00 | 116.00 |
| 20 | 60 | 61.00 | 61.00 | 122.00 |
| 21 | 60 | 64.00 | 64.00 | 128.00 |
| 22 | 60 | 68.00 | 68.00 | 136.00 |
| 23 | 60 | 72.00 | 72.00 | 144.00 |
| 24 | 60 | 76.00 | 76.00 | 152.00 |
| 25 | 60 | 80.00 | 80.00 | 160.00 |
| 26 | 60 | 85.00 | 85.00 | 170.00 |
| 27 | 60 | 90.00 | 90.00 | 180.00 |
| 28 | 60 | 95.00 | 95.00 | 190.00 |
| 29 | 60 | 100.00 | 100.00 | 200.00 |
| 30 | 60 | 105.00 | 105.00 | 210.00 |
| 31 | 60 | 110.00 | 110.00 | 220.00 |
| 32 | 60 | 120.00 | 120.00 | 240.00 |
| 33 | 60 | 130.00 | 130.00 | 260.00 |
| 34 | 60 | 140.00 | 140.00 | 280.00 |
| 35 | 60 | 150.00 | 150.00 | 300.00 |
| 36 | 60 | 160.00 | 160.00 | 320.00 |
| 37 | 60 | 170.00 | 170.00 | 340.00 |
| 38 | 60 | 180.00 | 180.00 | 360.00 |
| 39 | 60 | 190.00 | 190.00 | 380.00 |
| 40 | 60 | 200.00 | 200.00 | 400.00 |
Enrollment Process
Eligible individuals can enroll in the NPS Traders Yojana by visiting their nearest CSC (Common Service Centre). The following are required for the enrollment:
- Aadhaar Card
- Savings Bank Account Details (with IFSC Code)
- Initial Contribution: Paid cash to the Village Level Entrepreneur (VLE).
The VLE will assist with the online registration, where the subscriber’s details, including Aadhaar number, bank details, and nominee information, are entered.
After making the first contribution, the system generates a unique Vyapari Pension Account Number (VPAN) and issues a Vyapari Card.