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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 Centre’s pension scheme for small traders- Pradhan Mantri Laghu Vyapari Maan-dhan, Yojana 2019– has been notified and is being introduced on a trial basis.


Key features:

  1. 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.
  2. 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.
  3. To be eligible, the applicants should not be covered under the National Pension Scheme, Employees’ State Insurance Scheme and the Employees’ Provident Fund or be an Income Tax assessee.
  4. The scheme is based on self-declarationas no documents are required except bank account and Aadhaar Card.
  5. 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.


Sources: the Hindu.