National Pension Scheme for Traders & Self-Employed Persons: ₹3,000 Pension

What is NPS-Traders?

The scheme was launched nationally on 12 September 2019 for traders, retail shopkeepers and self-employed persons. It is administered by the Ministry of Labour & Employment and implemented through the Life Insurance Corporation of India and Common Service Centres.

It is a voluntary, contributory and Government co-contributory pension scheme. The subscriber contributes a prescribed amount based on age at entry and the Central Government makes an equal matching contribution.

LIC acts as Pension Fund Manager and is responsible for pension payout.

Eligibility for NPS-Traders

A person may join the scheme if the current eligibility conditions are satisfied. The core conditions include:

• age at entry must be between 18 and 40 years;
• the person must be a trader, shopkeeper or self-employed person covered by the scheme;
• annual business turnover must not exceed ₹1.5 crore;
• the applicant must satisfy the scheme's self-certification requirements; and
• the applicant must not fall under the prescribed exclusion categories.

Examples of covered occupations cited by Government material include shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, real-estate brokers and owners of small hotels or restaurants.

Who Cannot Join?

Under the current Government framework, the applicant should not:

• be an income-tax payer;
• be covered under EPFO;
• be covered under ESIC;
• be covered under Government-contributed NPS;
• be a beneficiary/member of PM-SYM; or
• otherwise fall within an exclusion specified in the current scheme rules.

Pension and Family Pension

After attaining the age of 60 years, an eligible subscriber who has complied with the contribution requirements is entitled to a minimum assured monthly pension of ₹3,000.

If the subscriber dies while receiving pension, the spouse is entitled to receive 50% of the pension as family pension. Family pension is applicable to the spouse.

If a subscriber dies before age 60 after making regular contributions, the spouse may continue the scheme by making the prescribed regular contribution or may exit in accordance with the applicable withdrawal provisions.

Monthly Contribution: ₹55 to ₹200

The contribution is fixed according to the subscriber's age at enrolment. The subscriber pays 50% and the Central Government contributes an equal amount.

The first contribution is generally paid during enrolment. Subsequent contributions are made through auto-debit from the linked bank account in accordance with the scheme process.

Documents Required

The original page listed numerous business, residence, GST and trade-licence documents. Current Government guidance is simpler because enrolment is based substantially on self-certification.

At enrolment, the principal documents/details are:

• Aadhaar card;
• savings bank account or Jan-Dhan account details/passbook;
• mobile number and other information required by the portal/CSC; and
• GSTIN where applicable under the scheme's current turnover/GST requirements.

Government launch guidance stated that GSTIN was required for traders above the applicable GST threshold and that separate documentary proof of age or income was not ordinarily required where self-certification applied.

How to Apply for NPS-Traders

Through Common Service Centre (CSC)

1. Visit the nearest Common Service Centre.
2. Carry Aadhaar and savings/Jan-Dhan bank-account details.
3. Provide the required self-certification and scheme details.
4. The CSC operator completes the online enrolment process.
5. Pay the first prescribed contribution.
6. Link the bank account for subsequent contribution auto-debit.
7. Obtain the pension/scheme card or acknowledgement generated by the system.

Online Self-Enrolment

Eligible applicants may also use the official Maandhan portal where the self-enrolment facility is available.

Exit, Withdrawal and Continuation

The Maandhan pension framework contains flexible exit provisions. The exact amount payable on exit depends on the reason and timing of withdrawal and the applicable scheme rules.

Where a subscriber dies before age 60 after regular contribution, the spouse may continue the scheme or exit under the prescribed provisions. If the subscriber moves into an excluded organised-sector arrangement, continuation and Government co-contribution are governed by the applicable Maandhan rules.

Subscribers should use the current Ministry/LIC/Maandhan instructions for voluntary exit, involuntary exit, revival and claim processing because administrative modules have evolved since the scheme's 2019 launch.

Current Scale of the Scheme

The Ministry of Labour & Employment's 2024-25 Annual Report states that more than 58,000 beneficiaries had registered under NPS-Traders as on 31 December 2024.

The scheme continues to be implemented through LIC and the Common Service Centres network, with self-enrolment through the Maandhan portal.

Key Points to Remember

• The current Government name is National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons.
• Entry age is 18-40 years.
• Annual turnover must not exceed ₹1.5 crore.
• The minimum assured pension is ₹3,000 per month after age 60.
• The subscriber and Central Government contribute equally.
• Monthly subscriber contribution ranges from ₹55 to ₹200 depending on age at entry.
• The spouse may receive 50% family pension after the pensioner's death.
• LIC is the Pension Fund Manager and pension payout agency.
• CSC and Maandhan remain the principal enrolment channels.