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Bennisha

Expert

Published on: Jun 24, 2026

Pension For Traders

The Government has approved a scheme of

Pension for Traders on 31st May 2019. The Union Cabinet, managed by the Honorable Prime Minister Narendra Modi has approved a new scheme that offers pension to the trading community. The scheme has been launched as a part of Prime Minister's vision to provide a robust architecture for universal social security. Let us look in detail about the scheme.

Benefits of the Scheme

Pension Scheme for

Traders grants all a minimum of Rs. 3000 per month to shopkeepers, retail traders and self-employed individuals. However, all eligible beneficiaries should have attained 60 years of age. As per latest press release (3rd July 2019), the eligibility of the traders are provided below:
  1. All shopkeepers/retail-traders/ self-employed persons in the age group of 18-40 years are eligible to be the member, on self-declaration.
  2. A shop keeper/ retail-trader /self-employed person if registered with GSTN, his/ her firm’s annual turnover should not exceed Rs.1.5 crore.
  3. He/she should not be an income tax payee.
  4. He/she should not be a member of EPFO/ESIC/NPS/PM-SYM.
  5. The Central Government’s share will be matching to the subscriber’s contribution

The press notification can be accessed below:

Eligible Standards

Those small shopkeepers, self-employed individuals and retailers who have a

GST turnover below Rs. 1.5 Crore and aged between 18-40 can enrol and are eligible to apply for this scheme. Having said this, with proper implementation of the scheme, over 3 Crore small shopkeepers and traders.

Application Procedure

The scheme is based on self-declaration, and therefore, there are no documents required to apply for this scheme. In order to transfer the pension amount to the beneficiary's account, there would be a requirement of

Aadhaar and bank account. Traders can enrol through Common Service Centres that are located throughout the country.

Fund Allocation

The Government of India contributes to the subscribers' account. For instance, if an individual of age 29 years contributes Rs. 100 per month, then the Central Government contributes the equal amount as subsidy into the subscriber's pension account every month.

Back to Learn

Frequently Asked Questions

Common questions about Pension Scheme for Traders: Government Initiative.

The Pension Scheme for Traders is a government-approved scheme that provides a minimum pension of Rs. 3,000 per month to eligible shopkeepers, retail traders, and self-employed individuals aged 60 years and above. It aims to provide universal social security to the trading community.
Shopkeepers, retail traders, and self-employed individuals aged between 18 and 40 years are eligible for the scheme. They must have a GST-registered annual turnover below Rs. 1.5 crore, and they should not be income tax payers or members of EPFO, ESIC, NPS, or PM-SYM.
The scheme is based on self-declaration, so no documents are required for application. Traders can enroll through the Common Service Centers located across the country. However, Aadhaar and bank account details will be required to transfer the pension amount.
The Central Government's contribution to the subscriber's pension account will match the subscriber's monthly contribution. For example, if a 29-year-old subscriber contributes Rs. 100 per month, the government will also contribute Rs. 100 to the account.
According to the article, with proper implementation of the scheme, over 3 crore small shopkeepers and traders are expected to benefit from the Pension Scheme for Traders.
Yes, the scheme is open to shopkeepers, retail traders, and self-employed individuals between the ages of 18 and 40 years. Those who have attained 60 years of age are eligible to receive the minimum pension of Rs. 3,000 per month.
No, according to the eligibility criteria mentioned in the article, income tax payers are not eligible to join the Pension Scheme for Traders.
The Pension Scheme for Traders has been launched as part of the Prime Minister's vision to provide a robust architecture for universal social security, specifically targeting the trading community.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pension Scheme for Traders on 31st May 2019.
Yes, the Pension Scheme for Traders is a nationwide scheme, and traders can enroll through Common Service Centers located throughout the country.