Cabinet clears pension scheme for traders

India has a rich tradition of trade and commerce. Our traders continue to make a strong contribution to India’s economic growth.

In a decision that will benefit the trading community, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved a new scheme that offers pension coverage to the trading community. This is a part of the Prime Minister’s vision to provide a robust architecture of universal social security.

How the scheme works:

Under this scheme, all shopkeepers, retail traders and self-employed persons are assured a minimum monthly pension of Rs 3,000 month after attaining the age of 60 years.

All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below Rs 1.5 crore and age between 18-40 years, can enroll for this scheme.  The scheme would benefit more than 3 crore small shopkeepers and traders.

The scheme is based on self-declaration as no documents are required except Aadhaar and bank account. Interested persons can enroll themselves through more than 3,25,000 Common Service Centres spread across the country.

The Government of India will make a matching contribution in the subscribers’ account.  For example, if a person with age of 29 years contributes Rs 100/- month, then the Central Government also contributes the equal amount as subsidy into subscriber’s pension account every month.


[Source: PIB]

Cabinet

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