PM Launches National Pension Scheme for Small Traders and Self Employed Persons

Prime Minister Narendra Modi launched the National Pension Scheme for Traders and Self Employed Persons with annual turnover not exceeding Rs 1.5 crore.

About the Scheme

  • It is a voluntary and contributory pension scheme for traders in the age group of 18 to 40 years
  • The scheme provides for minimum assured pension of Rs 3,000 monthly on attaining the age of 60 years.
  • The Central Government shall contribute 50 per cent of the monthly instalment and the remaining 50 per cent contribution must be made by the beneficiary.
  • The monthly contribution is in the range of Rs 55 to Rs 200 depending on the age of entry.
  • The traders who seek to enrol must have an Aadhaar card and a saving bank/ Jan-Dhan Account.
  • The traders with turnover of over Rs 40 lakhs must provide their Goods and Service Tax Identification Number (GSTIN) and the enrolment is based upon self-certification.
  • The enrolment under the scheme is free of cost for the beneficiaries.
  • The scheme targets to enrol 25 lakh subscribers in 2019-20 and 2 crore subscribers by 2023-2024.
  • Any person making a contribution to EPFO, ESIC, NPS (government declared),  Atal Pension Yojana, Pradhan Mantri Shram Yogi Man-Dhan Yojana and/or paying income tax are also not eligible for the scheme.

The scheme aims to enhance the social security of the traders who are working in the unorganized sector.

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