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Pension scheme for small retail traders and shopkeepers

Topics covered:

  1. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

 

Pension scheme for small retail traders and shopkeepers

 

What to study?

For prelims and mains: key features and significance of the scheme.

 

Context: The Union Cabinet has approved a monthly pension scheme for small retail traders and shopkeepers. The scheme that offers pension coverage to the trading community will cover 3 crore small retail traders and shop keepers.

 

Key features:

  • Under the scheme all small shopkeepers, retail traders and self-employed persons are assured a minimum of Rs.3,000 monthly pension after attaining 60 years of age.
  • Eligibility: All small shopkeepers, self-employed persons and retail traders aged between 18-40 years and with Goods and Service Tax (GST) turnover below Rs.1.5 crore can enrol for pension scheme.
  • The scheme is based on self-declaration as no documents are required except bank account and Aadhaar Card.
  • The Central Government will make matching contribution (same amount as subscriber contribution) i.e. equal amount as subsidy into subscriber’s pension account every month.