NPS Yojana for Traders and Self Employed Persons
NPS Yojana for Traders and Self Employed Persons is a government scheme meant for old age protection and social security of Shopkeeper’s, Retail traders and Self Employed persons.
Eligibility for NPS Yojana for Traders and Self Employed Persons
For self employed shop owners, retail owners and other vyaparis
Entry Age between 18 to 40 years
Annual turnover should not exceed Rs 1.5 crore
Features of NPS Yojana for Traders and Self Employed Persons
Assured Pension of Rs. 3000/- month
Voluntary and Contributory Pension Scheme
Matching Contribution by the Government of India
Apply Online for NPS Yojana for Traders and Self Employed Persons
You can apply online by Self Enrollment or by visiting CSC centre.
FAQ of NPS Yojana for Traders and Self Employed Persons
What is National Pension Scheme for Traders and Self Employed Persons Yojana?
National Pension Scheme for Traders and Self Employed Persons Yojana is a voluntary and contributory Government Pension Scheme for Vyaparis, retail traders, shopkeepers and self-employed persons, with annual turn-over not exceeding Rs.1.5 crore. Entry age is 18 to 40 years. The scheme is implemented by Ministry of Labour & Employment, Government of India. The scheme has been notified vide its S.O 2615E, dated 22.02.2019.
Who can subscribe this Scheme?
Any retail trader, shopkeepers and self-employed person with annual turn-over not exceeding Rs.1.5 crore, in the age group of 18-40 year can subscribe this Scheme. They should not be an income tax payer or a member of National Pension Scheme (NPS – GOVT FUNDED), Employees’ State Insurance Corporation scheme (ESIC) and Employees’ Provident Fund Organization (EPFO) and Pradhan Mantri Shram Yogi Maandhan.
What is the benefit of this Scheme?
It is a social security/old age protection scheme for Vyaparis. Subscriber will get a minimum assured monthly pension of Rs. 3000/- after attaining the age of 60 years. During the receipt of the pension, if subscriber dies, her/his spouse will receive a monthly family pension equivalent to 50 % of the subscriber pension.
How many years the beneficiary will contribute?
Once beneficiary joins the scheme at the entry age between 18-40 years, she/he has to continuously contribute till she/he attains the age 60 years.
How much pension would be received under the Scheme? At what age?
Under the Scheme, a minimum monthly assured pension of Rs. 3000/- will commence after the subscriber attains the age of 60 years.
How can one join the scheme?
Under the scheme, the subscriber may visit the nearest Common Service Centre and get enrolled in the scheme using her/his Aadhar number and savings bank account/Jan-Dhan account number on self-certification basis. Nearest Common Service Centres (CSCs) can be located at locator.csccloud.in/.
Where do I go for enrollment?
You may visit the nearest Common Service Centre for enrollment. One can locate the nearest CSCs at locator.csccloud.in/. Or You may enroll yourself on the portal https://maandhan.in
Whether I have to give proof of my date of birth?
Self-Certification and age as in Aadhaar card will be the basis for enrollment. However, any change of date of birth will not be allowed later.
What are the exit provisions?
Exit provisions are as under:
- in case an eligible subscriber 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 subscriber 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 subscriber 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 subscriber 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 clauses (i), (ii) and (iii) 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 subscriber and his or her spouse, the corpus shall be credited back to the fund;
What is the role of Life Insurance Corporation of India (L.I.C)?
The scheme is being implemented through LIC and CSCs. LIC is the pension fund manager and also responsible for pension pay out.
What is the mode of contribution?
Under the scheme, primary mode of contribution is on monthly basis through auto-debit from bank account. However, first month contribution is to be made in cash at CSC. Subscriber also has option to pay his/her contribution quarterly, half yearly or yearly.
How much contribution I have to pay?
The actual amount of the subscriber’s contribution depends upon subscriber’s entry age and remains fixed through till the age of 60 years. Contribution table can be seen.
Whether there is auto-debit facility?
Yes. Monthly subscription shall be automatically debited on a fixed date of every month from her/his linked savings account. Only, first subscription will be paid in cash for which receipt will be provided by concerned CSCs/VLEs.
Who is the nodal officer in the Ministry of Labour & Employment?
The scheme is being administered by Ministry of Labour and Employment. JS & Director General (Labour Welfare) is the Nodal Officer of the scheme.
Is there any cost for enrollment?
There is no administrative cost to the subscriber as it is a Social Security Scheme of the Government of India. The enrollment under the Scheme is free for subscribers.
Whether there is provision for family pension?
Yes, there is a provision for family pension under the scheme. It is applicable only to the spouse of the subscriber. If the subscriber dies, after the pension has commenced, the spouse of the beneficiary shall be entitled to receive 50 % of the pension.
Is there any loss to the subscriber at any stage?
There is no loss to the subscriber at any point of time. Even if the subscriber exits the scheme at any time before 60 years of age, his entire contribution will be refunded with interest, as per the guidelines of the Scheme.
If the payment of subscription is stopped, can a subscriber re-join/ revive the scheme again?
If the payment of subscription has been stopped or delayed, the subscriber can revive the scheme after paying the outstanding subscription with a nominal interest as decided by the Government.
What happens if the subscriber exits the scheme before 10 years of regular contributions?
In such an event, the subscriber will be paid back only his/her portion of total contribution with savings’ bank rate interest. She/he will not be entitled to receive the Government’s share.
What happens if the subscriber exits the scheme after 10 years but before the pension commences?
If an eligible subscriber exits after completion of a period of ten years or more from the date of joining the scheme but before the age of sixty years, then her/his share of contribution only shall be returned to her/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.
What happens in case of death before the start of pension?
In such cases, if a subscriber has given regular/default contribution and died due to any cause, her/his spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution for the remaining period. On completion of the contribution period, the spouse will receive a monthly pension of Rs. 3000/-. Alternatively, if the spouse so desires, the amount of the member’s contribution with interest will be returned back to the spouse as per the guidelines of the Scheme.
Can the subscriber make voluntary contribution over and above the amount prescribed under the Scheme? If so, what will be the benefits to the subscriber?
No. The subscriber can make only fixed amount of contribution, as determined at the time of joining of the Scheme and as per the table in the scheme notification. Table is also annexed.
Can the age be relaxed for the Unorganized worker above 40 years, to join the Scheme, by making additional or higher contribution?
No such relaxation is available under the provision of the Scheme.
Will there be any additional charge in case of any default in contribution by the subscriber? If so, what will be the quantum of additional charges?
If an eligible subscriber makes a default in the payment of any contribution to be payable by her/him under this scheme, then she/he shall be allowed to regularize the contribution by paying the entire outstanding dues, along with interest at the rate as determined by the Ministry of Labour & Employment from time to time. Detailed guidelines will follow.
Whether spouse is entitled for family pension after the death of subscriber?
During the receipt of pension, if the subscriber dies, the spouse shall be entitled to receive 50% of the pension received by the beneficiary as family pension.
Is there any provision for availing interim loan for education, marriage and construction.
No such loan facility is available in the Scheme.
Can a beneficiary who is a subscriber to Public Provident Fund Scheme, be eligible to join National Pension Scheme for Traders and Self Employed Persons?
Yes. There is no such bar.
Can a beneficiary who is a subscriber Pradhan Mantri Shram Yogi Maandhan, be eligible to join National Pension Scheme for Traders and Self Employed Persons?
No. Any beneficiary, who is a member of Pradhan Mantri Shram Yogi Maandhan, is not eligible to join this Scheme.
Whether beneficiaries under Atal Pension Yojana (APY) can avail benefits under National Pension Scheme for Traders and Self Employed Persons?
Even if a subscriber is a member of Atal Pension Yojana or State-run Pensions like NSAP, Fisherman Pension Scheme, Municipality-run Pension Scheme or any other pension scheme, it will not bar her/him from availing this Scheme.
Will the quantum of pension be enhanced beyond Rs.3,000/- per month, due to inflation in future?
At present, the minimum assured pension is Rs. 3000/- per month. Enhancement of the quantum of pension, if any shall depend on the future policies/ earnings of the fund.
Is there any help line/ grievance redressal mechanism?
In order to provide online support or help to the subscriber, on the directions of Ministry of Labour and Employment, LIC has set up a dedicated toll free Call Centre 1800-2676-888. It is available 24X7.
Is there any partial withdrawal of contribution in case of certain exigencies? If yes, after how much lock-in period?
No facility of partial withdrawal of contribution is available.
Can the Vyapari Pension Card be downloaded again in case of loss/damage, etc.? Whether any charges are to be paid for the same?
In case of loss, the Vyapari Pension card can be downloaded from the Portal free of cost or it can be got printed from CSC as per the charges fixed.
Is there a provision for migration of the pension account if the worker changes the linked bank account for auto debit?
In such cases, no migration is required. Under the Scheme, subscriber can update the new Bank account number in her or his Pension account by visiting any CSC. Subscriber has to carry the savings bank account pass book, under her/his name.
If subscriber has insufficient balance in her/his bank account for auto debit, what will happen to her/his pension account?
It will be considered as default in payment and she/he will be allowed to regularize her/his contribution by paying entire outstanding dues, along with interest as decided by the Government (Ministry of Labour and Employment) from time to time. The banks may levy a penalty of Rs 10/- in such cases.
Whether the subscriber has to submit his photograph at the time of registration?
Submission of photograph at the time of registration is not required.
In case of any further clarification, who can be contacted?
The Scheme is being administered by the Ministry of Labour and Employment in association with the LIC and CSC. Joint Secretary & Director General, Labour Welfare is the Nodal Officer of the Scheme. Therefore, in case of any clarification, one can contact Joint Secretary & DGLW, Ministry of Labour and Employment, Jaisalmer House, Mansingh Road, New Delhi-110011.
What happens if:
a subscriber’s monthly annual turnover exceeds Rs. 1.5 crore, after joining the scheme?
a subscriber becomes a member of ESIC after joining the scheme?
a subscriber becomes an income-tax payer after joining the scheme?
All these subscriber can continue to be part of National Pension Scheme for Traders and Self Employed Persons scheme.
What happens if the subscriber becomes a member of Government Funded NPS, after joining National Pension Scheme for Traders and Self Employed Persons?
The subscriber should exit National Pension Scheme for Traders and Self Employed Persons on becoming a member of Government funded NPS.
Whether savings bank account in a cooperative bank can also be linked for auto-debit facility for payment of contribution?
Yes, provided the co-operative bank is on the CBS platform, the savings’ bank account can be linked for auto debit.