Cabinet Approves Pension Scheme for Small Traders

The Union Cabinet headed by Prime Minister Narendra Modi has approved a new scheme which assures minimum monthly pension of Rs 3,000 to all shopkeepers, retail traders and self-employed persons after attaining the age of 60 years.

About the Pension Scheme

• All shopkeepers, self-employed persons and retail traders with GST turnover below Rs 1.5 crore and aged between 18-40 years, can be enrolled for the scheme.
• For those who enrol at the age of 18, Rs 60 a month is the instalment.
• Those who get enrolled at the age of 29 years will have to make a monthly investment of Rs 100 and Rs 200 per month for those who are enrolled at 40 years of age.
• The government will make a matching contribution in the subscribers account.
• The scheme is expected to benefit 5 crore small traders over the next three years.

The scheme is part of the government’s effort in ensuring universal social security and it has been a key demand of the trading community for long.