Overview The National Pension Scheme for Traders and Self-employed Persons (originally launched as the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana) is a voluntary and contributory pension scheme initiated by the Government of India. It is designed to provide social security and old-age protection specifically to small-scale traders, shopkeepers, and self-employed individuals whose annual turnover does not exceed Rs 1.5 Crore. The scheme functions as a safety net for the unorganized sector, ensuring a stable financial stream after the age of 60. The scheme is implemented by Ministry of Labour & Employment, Government of India. The scheme has been notified on 22.02.2019. Objectives The primary objective of the scheme is to address the lack of retirement benefits for the trading community. Unlike formal sector employees who often benefit from provident funds and corporate pensions, small business owners frequently lack structural savings for their senior years. The scheme aims to provide a guaranteed monthly pension to eligible beneficiaries, encourage a culture of savings among small-scale entrepreneurs and reduce the financial dependence of elderly traders on their families or the state. Eligibility Criteria To enroll in the National Pension Scheme for Traders, applicants must meet specific criteria regarding age, occupation, and financial status. Age Requirements - Applicants must be between 18 and 40 years of age. This entry window ensures that participants have a sufficient period to contribute to the fund before reaching the retirement age of 60. Turnover and Profession - The scheme is open to self-employed shopkeepers, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, and owners of small hotels or restaurants. A critical requirement is that the annual turnover of the business must not exceed Rs. 1.5 crore. Exclusions - Certain individuals are ineligible for the scheme to avoid the duplication of social security benefits. These include: Individuals covered under the Employees' Provident Fund Organisation (EPFO) Subscribers to the Employees' State Insurance Corporation (ESIC) Members of the National Pension System (NPS) contributed by the Government. Income tax payers Covered under any National Pension Scheme contributed by the Central Government or member of EPFO/NPS/ESIC An income tax payer Enroled under Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Labour & Employment or Ministry of Agriculture & Farmers Welfare, respectively Contribution Structure The scheme operates on a 50:50 basis, where the subscriber and the Central Government make equal contributions. Monthly Contributions - The amount of monthly contribution is determined by the age of the subscriber at the time of entry. For example, an 18-year-old may pay a nominal amount, while a 40-year-old would pay a higher monthly premium. This fixed amount continues until the subscriber reaches 60 years of age. To view the contribution chart, click here. Matching Government Contribution - The Government of India matches the subscriber’s contribution exactly. If a trader contributes Rs. 100 per month, the Central Government deposits an additional Rs. 100 into the subscriber's pension account every month. If the payment of subscription is stopped, can a beneficiary re-join/ revive the scheme again? If the payment of subscription has been stopped or delayed, the beneficiary can revive the scheme of upto 3 years from the date of default. after paying the outstanding subscription with a nominal interest as decided by the Government. Benefits and Payouts Upon reaching the age of 60, the subscriber becomes eligible for a minimum assured monthly pension of Rs. 3,000. Family Pension - In the event of the subscriber's death while receiving the pension, the spouse is entitled to receive 50% of the pension amount (Rs. 1,500) as a monthly family pension, provided the spouse is not already a beneficiary of the scheme. Disability Benefits - If a subscriber has made regular contributions and becomes permanently disabled before the age of 60, and is unable to continue under the scheme, their spouse is entitled to continue the scheme by making regular contributions or exit the scheme as per the exit provisions. Enrollment and Implementation The scheme is implemented through the Ministry of Labour and Employment and is managed by the Life Insurance Corporation of India (LIC), which acts as the pension fund manager. Registration Process Self enrollment can be made at https://maandhan.in/maandhan/login Enrollment through Common Service Centres (CSCs) located across the country. Applicants are required to provide their Aadhaar card and savings bank account/Jan Dhan account details. Exit and Withdrawal The scheme features flexible exit options. In case an eligible beneficiary exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then his share of contribution only will be returned to him with savings bank rate of interest payable thereon. If an eligible beneficiary exits after completion of a period of ten years or more from the date of joining the Scheme by him but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher If an eligible beneficiary has given regular contributions and died due to any cause, her/his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such beneficiary along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher In case of exit on account of all of the above, the accumulated share of Government’s contribution shall be credited back to the Pension Fund Any other exit provision, including nomination, as may be decided by the Central Government by issuing instructions from time to time. After death of beneficiary and his or her spouse, the corpus shall be credited back to the fund