Context: Under performance of National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons.
- Just over 34,000 people have signed up so far.
- The Labour Ministry’s vision document in 2019 had set a target of 25 lakh enrolments for the scheme in 2019-2020.
What is Pradhan Mantri Laghu Vyapari Maan-dhan Yojana?
It is a voluntary and contribution based central sector scheme. The government launched the scheme, entailing monthly minimum assured pension of ₹3,000 for the entry age group of 18-40 years after attaining the age of 60 years, with effect from July 22, 2019. Under the scheme, the government makes matching contribution in the subscribers’ account. The scheme is based on self-declaration as no documents are required except bank account and Aadhaar Card.
- 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.
- 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.
Benefits to the family on death of an eligible subscriber:
During the receipt of pension, if an eligible subscriber dies, his spouse shall be only entitled to receive fifty per cent. of the pension received by such eligible subscriber, as family pension and such family pension shall be applicable only to the spouse.