Get a fixed monthly pension of ₹3,000; find out which scheme the government is recommending.

The central government has introduced a pension scheme for shopkeepers and traders. Under this scheme, they will receive a monthly pension of ₹3,000 after attaining the age of 60.

While government employees receive a pension after retirement—making their post-retirement life easier—what about small business owners and shopkeepers for whom no such scheme previously existed? The government has devised a specific scheme for such individuals.

The central government has urged shopkeepers, small business owners, and self-employed individuals to join the National Pension Scheme (NPS-Traders). The Ministry of Labour and Employment shared this information via a social media post on Monday, September 28.

What is the scheme?

This scheme provides for a minimum monthly pension of ₹3,000 after the age of 60. The government states that this will offer financial security in old age to individuals who typically do not fall under the ambit of government pension schemes.

How to apply?

Shopkeepers, retail traders, and self-employed individuals can avail the benefits of this scheme. One can apply online or register by visiting a nearby Common Service Centre (CSC). To apply for the scheme, certain criteria must be met, such as:

The applicant's age must be between 18 and 40 years.
The business's annual turnover must be less than ₹1.5 crore.
The business must be registered.
The individual must not be covered under any other formal pension system, such as the EPFO.

How much money needs to be deposited?

This is a voluntary, contributory pension scheme. Under this scheme, the beneficiary deposits a fixed amount monthly, and the central government contributes an equal amount. Depending on age, the monthly contribution required ranges from approximately ₹55 to ₹200. Upon attaining the age of 60, the beneficiary receives a minimum monthly pension of ₹3,000.