NPS for Traders and Self Employed Persons

What is NPS for Traders and Self Employed?

NPS-Traders operates as a voluntary, contributory pension scheme, specifically designed for "Laghu Vyaparis," including shopkeepers, small-scale manufacturers, and independent service providers. The Ministry of Labour and Employment governs the scheme, with the Life Insurance Corporation (LIC) functioning as the fund manager, responsible for pension disbursement. Implementation is facilitated through LIC branch offices and Common Service Centres (CSCs).

Annuity Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

%

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

%

40% 100%

Enter Corpus Percentage

Expected Return from Pension

%

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

View Plans

₹0

Your Monthly Pension

View Plans Your Pension Calculation

Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

View Plans

Eligibility Criteria for NPS Traders and Self Employed Persons

Individuals engaged in small-scale trading and self-employment can apply for this scheme. Eligible categories include:

• Small traders and shop owners

• Rice mill and oil mill proprietors

• Workshop and small factory owners

• Commission agents and real estate brokers

• Owners of small hotels and restaurants

• Other similar Laghu Vyaparis

Additional conditions:

• Must be aged between 18-40 years

• Annual turnover should not exceed Rs. 1.5 crore

• Should not be part of EPFO, NPS, or ESIC

• Cannot be an income taxpayer or a beneficiary of PM-SYM

• Must have an Aadhaar card and a savings/Jan Dhan bank account with IFSC

Benefits of NPS for Traders and Self Employed Persons

Below are the benefits of NPS for traders:

1. Assured Pension:

   Upon reaching 60 years, members receive a monthly pension of Rs. 3,000.

2. Family Pension:

   After the subscriber's demise, the spouse receives 50% of the pension amount.

3. Government Contribution:

   The Central Government matches the contribution made by the subscriber.

4. Low Contribution Amount:

   Monthly contributions range between Rs. 55 to Rs. 200, depending on the joining age.

5. Easy Auto-Debit Facility:

   Contributions are deducted automatically from the subscriber's bank account.

Enrollment Process for NPS Traders

Eligible individuals can enrol in the scheme through the following steps:

Step 1:

Visit the nearest Common Service Centre (CSC).

Step 2:

Provide Aadhaar card, bank details, and IFSC code.

Step 3:

Make the initial contribution in cash.

Step 4:

Village Level Entrepreneur (VLE) inputs details for authentication.

Step 5:

Complete online registration with additional personal and financial details.

Step 6:

System calculates the monthly contribution based on age.

Step 7:

Sign and submit the auto-debit mandate form.

Step 8:

Receive a unique Vyapari Pension Account Number (VPAN) and Vyapari card.

Facilitation centres such as labour offices and LIC branches provide additional support and information.

Exit and Withdrawal Provisions of NPS Traders

The scheme incorporates structured exit and withdrawal protocols:

1. Early Exit (within 10 years):

   Return of the participant's contribution with savings bank interest.

2. Mid-Term Exit (after 10 years, before 60):

   Return of the participant's contribution with accumulated interest or savings bank interest, whichever is higher.

3. Premature Death (before 60):

   Spouse can continue the scheme or withdraw accumulated contributions with interest.

4. Disability (before 60):

   Similar options as premature death.

5. Post-Retirement Death (after 60):

   Spouse receives 50% of the pension as a family pension.

Conclusion

The NPS-Traders scheme is a vital step towards ensuring financial security for self-employed individuals and small traders. By offering a stable pension, government contribution, and easy enrollment, it provides a reliable safety net for retirement. For better retirement planning with minimal investment, traders can secure a steady post-retirement income, making this scheme a valuable financial planning tool. Opting for NPS-Traders today ensures peace of mind and financial independence in the future.