National Pension Scheme for Traders & Self-Employed Persons 2025

India’s economy depends heavily on the contribution of small traders, retailers, and self-employed individuals. Nearly 50% of the country’s GDP comes from the unorganized sector. To ensure social security and financial protection for such hardworking individuals in their old age, the Government of India introduced the National Pension Scheme for Traders and Self-Employed Persons (NPS-Traders).

National Pension Scheme acts as a social security net for small-scale traders and self-employed individuals. After turning 60 years, the beneficiary receives a minimum assured pension of ₹3,000 per month. The scheme is voluntary and contributory, meaning traders contribute a small monthly amount, and the government guarantees their pension benefits.

Objectives of the Scheme

Financial Security in Old Age – To provide steady income support to small traders and self-employed persons after 60 years.
Family Protection – Ensuring family pension for spouse after the death of the beneficiary.
Dignity to Traders – Recognizing and securing the contribution of traders in India’s economic growth.
Social Security Net for Unorganized Sector – To extend pension coverage to workers outside the formal system.

Key Features of the Scheme

Minimum Pension: ₹3,000 per month after the age of 60.
Family Pension: 50% of pension to spouse after the death of the beneficiary.
Monthly Contribution: Ranges from ₹55 to ₹200 depending on age at entry.
Entry Age: Between 18 to 40 years.
Annual Turnover Limit: Eligible only if business turnover is up to ₹1.5 crore.
Simple Enrollment: Registration through CSC (Common Service Centers) using Aadhaar and bank details.

Age-wise Contribution Table

The younger the beneficiary at the time of enrollment, the lower the monthly contribution.

18 years – ₹55 per month
25 years – ₹85 per month
30 years – ₹100 per month
35 years – ₹150 per month
40 years – ₹200 per month

👉 Thus, early enrollment is highly beneficial, as contributions are smaller while benefits remain the same.

Benefits of the Scheme

1. Assured Pension

After attaining 60 years of age, the beneficiary receives a guaranteed monthly pension of ₹3,000. This ensures financial stability in old age.

2. Family Pension

In case of the beneficiary’s death, the spouse is entitled to 50% of the pension amount as family pension (i.e., ₹1,500 per month).

3. Disability Benefit

If the beneficiary becomes permanently disabled before turning 60:

The spouse may continue the scheme by making regular contributions.
Alternatively, contributions can be withdrawn with applicable interest (bank interest rate or pension fund interest, whichever is higher).

4. Exit & Refund Option

Exit before 10 years – Own contribution + bank interest will be refunded.
Exit after 10 years but before 60 years – Own contribution + higher of bank interest or pension fund interest will be refunded.

Eligibility Criteria

Retail traders, shopkeepers, small businessmen, commission agents, self-employed persons, and owners of small hotels/restaurants/workshops.
Age between 18 and 40 years at the time of joining.
Annual business turnover must not exceed ₹1.5 crore.

Who is Not Eligible?

The following categories cannot enroll:

Income Tax payers.
Individuals already covered under EPFO, ESIC, or NPS.
Existing members of PM Shram Yogi Maandhan Yojana.
Existing members of PM Kisan Maandhan Yojana.

Registration Process

Enrollment can be done only through CSC centers (Common Service Centers).

Steps:

Visit the nearest CSC center.
Submit required documents – Aadhaar card, bank account details, and passbook/cheque leaf.
Make the first contribution in cash.
CSC operator will verify details using Aadhaar authentication (OTP/biometric).
Fill in details like mobile number, annual income, turnover, GSTIN (if available), spouse/nominee details.
System will automatically calculate monthly contribution based on age.
Make first payment and submit a self-declaration.
You will receive a VPAN (Vyapari Pension Account Number).
A Pension Card will be issued to the trader.

Required Documents

Aadhaar Card
Bank account (Savings/Jan Dhan account) with IFSC code
Bank passbook / statement / cancelled cheque

Frequently Asked Questions (FAQ)

Q1. Who can avail this scheme?
Small traders, retailers, and self-employed persons aged 18–40 years with turnover up to ₹1.5 crore annually.

Q2. What is the pension amount?
A minimum pension of ₹3,000 per month after 60 years of age.

Q3. Where can one register?
At the nearest CSC center with Aadhaar and bank account details.

Q4. Is proof of age required?
No separate proof is needed. Date of birth in Aadhaar is sufficient. However, correction of DOB is not allowed later.

Q5. Why is the scheme important?
Because it provides:

Old age income support for traders.
Family pension for spouse.
Huge benefit for very small monthly contributions.

Example for Better Understanding

👉 Suppose Rajesh, a 25-year-old shopkeeper, joins the scheme.

His monthly contribution = ₹85 only.
After 35 years, when he turns 60, he will receive a guaranteed pension of ₹3,000 every month.
In case of his death, his wife will continue to get ₹1,500 per month as family pension.

Thus, with a very small investment, Rajesh secures financial stability for himself and his family in old age.

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Conclusion

The National Pension Scheme for Traders and Self-Employed Persons – 2025 is a boon for small traders and self-employed individuals. It provides old-age income security, ensures family protection, and creates a strong social security net for India’s unorganized sector.

With just a small monthly contribution, traders can secure a guaranteed pension for life. Hence, every eligible trader and self-employed person should enroll in this scheme at the earliest.

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