National Pension Scheme for Traders and Self-Employed Persons (NPS-Traders)

What is NPS-Traders?

National Pension Scheme for Traders and Self-Employed Persons (NPS-Traders), also called Pradhan Mantri Laghu Vyapari Maandhan Yojana, is a voluntary and contributory pension scheme of the Ministry of Labour and Employment. The scheme was launched on 12 September 2019 to give old-age income security to small shopkeepers, retail traders and self-employed people who fall outside the formal pension system.

According to the maandhan.in portal, NPS-Traders pays a minimum assured pension of Rs 3,000 per month once the subscriber turns 60. The subscriber pays half the contribution and the Central Government pays an equal matching contribution into the same pension account.

Main features

• Assured pension of Rs 3,000 a month from age 60, for life.
• 50:50 contribution, the government matches every rupee the subscriber pays.
• Monthly contribution of Rs 55 to Rs 200, fixed by age at entry and unchanged thereafter.
• 50% family pension to the spouse on the subscriber's death after the pension starts.
• Enrolment through the network of Common Service Centres or self-enrolment on maandhan.in.

NPS-Traders is administered on the same platform as Pradhan Mantri Shram Yogi Maandhan, and the two schemes are mutually exclusive, a person can be enrolled in only one.

Who is eligible for NPS-Traders?

You can join if:

• You are a retail trader, shopkeeper or self-employed person, the scheme also covers people such as commission agents, small traders, rice mill owners, workshop owners and similar own-account businesses.
• You are aged 18 to 40 years at entry.
• Your annual turnover does not exceed Rs 1.5 crore.
• You have an Aadhaar number and a savings or Jan Dhan bank account with an IFSC code.

You cannot apply if:

• You are an income tax payer.
• You are a member of EPFO, ESIC, the government-funded National Pension System, or PM-SYM. Enrolment in one of these makes you not eligible for NPS-Traders.
• Your annual turnover is above Rs 1.5 crore.
• You are below 18 or above 40 years of age. There is no relaxation of the entry age.

Enrolment works on self-certification. The subscriber declares turnover and non-membership; a false declaration can lead to the account being closed and the government's share being recovered.

How much do you contribute and what do you get?

The contribution depends entirely on your age when you join and stays the same until you turn 60. According to the maandhan portal, the range is Rs 55 per month at entry age 18 to Rs 200 per month at entry age 40, so the maximum a subscriber pays in a year is Rs 2,400. The Central Government credits an identical amount to the same account.

The first contribution is paid in cash at the Common Service Centre at the time of enrolment. Every contribution after that is auto-debited from the linked bank account. Subscribers may also opt to pay quarterly, half-yearly or annually instead of monthly.

At 60, the pension of Rs 3,000 a month begins and continues for life. On the subscriber's death after that point, the spouse receives Rs 1,500 a month as family pension. No other family member is entitled to it.

What documents are required for NPS-Traders?

How to apply for NPS-Traders

1. Visit your nearest Common Service Centre with your Aadhaar card and savings or Jan Dhan bank passbook showing the IFSC code.
2. Ask the Village Level Entrepreneur to enrol you under NPS-Traders on the maandhan.in platform.
3. Give the self-declaration that your annual turnover is within Rs 1.5 crore and that you are not covered by EPFO, ESIC, NPS or PM-SYM and are not an income tax payer.
4. Verify the age-wise monthly contribution shown on screen — it is fixed from this point until you turn 60.
5. Pay the first contribution in cash at the centre and sign the auto-debit mandate for the bank account.
6. Collect the Shram Yogi / pension card carrying your pension account number and keep it safe. It is your proof of enrolment.

Eligible persons who prefer to do it themselves can self-enrol on maandhan.in using the Aadhaar number and bank details, without going to a Common Service Centre.

What happens if you stop paying or want to exit?

Exit rules under NPS-Traders are deliberately flexible, because trading incomes are irregular.

• Missed contributions: the account becomes irregular but can be revived by paying the outstanding amount with a nominal interest fixed by the government.
• Exit before 10 years: only your own contributions are returned, with savings bank rate interest.
• Exit after 10 years but before 60: your contributions are returned with either the interest actually earned by the fund or the savings bank rate, whichever is higher.
• Death before 60: the spouse may continue the scheme by paying the remaining contributions, or exit and take back the contributions with interest.
• Death after the pension starts: the spouse gets 50% family pension.

Help and grievance redressal

• Maandhan helpline: 14434, for enrolment, contribution and pension queries on NPS-Traders.
• maandhan.in: to check your pension account, update bank details and download your card.
• Common Service Centre, for assisted enrolment and for reviving a lapsed account.

Enrolment is free. No agent may charge a shopkeeper a fee to be added to NPS-Traders, and no official will ask for your OTP or bank password.