Atal Pension Yojana (APY)

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Atal Pension Yojana (APY) up to FY 2030–31.

About Atal Pension Yojana (APY)

• Launch: 2015, by the Government of India
• Nature: Voluntary, contributory pension scheme for old-age income security
• Type: Central Sector Scheme
• Nodal Ministry: Ministry of Finance
• Administration: Pension Fund Regulatory and Development Authority (PFRDA)
• Framework: Implemented under the National Pension System (NPS) architecture
• Rationale: 
  • Addresses longevity risk and absence of retirement security among the unorganised workforce.
  • Extends pension coverage to workers outside formal employment systems
• Objectives:
  • Ensure assured income in old age and reduce post-retirement financial dependency.
  • Promote a long-term savings culture among informal sector workers.
  • Enhance financial inclusion through access to banking and pension products, especially in rural and low-income groups.
• Coverage (As of April 2025)
  • APY has accumulated over 7.65 crore subscribers, mobilised a total corpus of ₹45,974.67 crore
  • Women participation comprise about 48% of all subscribers.

Salient Features of Atal Pension Yojana (APY) 

• Target Beneficiaries:
  • Primarily unorganised sector workers without formal pension access.
  • Eligibility: Indian citizens aged 18–40 years.
  • Income taxpayers excluded from enrolment w.e.f. 1 Oct 2022.
• Defined Pension Benefit:
  • Guaranteed monthly pension after 60 years: ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000.
• Contribution Structure:
  • Minimum contribution period: 20 years.
  • Contribution depends on age at entry and chosen pension slab.
  • Early enrolment means lower contribution burden.
• Government Co-contribution: For subscribers who joined between 1 June 2015 and 31 March 2016, the Government provided co-contribution of 50% of the subscriber’s contribution or ₹1,000 per annum, whichever was lower, for five years
• Eligibility Conditions:
  • Mandatory bank account with auto-debit.
  • Contributions: monthly / quarterly / half-yearly.
• Exit Provisions::
  • Exit before 60 years is permitted only in cases of death or terminal illness. 
  • Voluntary exit: Receives only own contribution & interest; government co-contribution is forfeited.
• Nominee Facility: Subscribers can nominate a beneficiary to receive pension benefits or the accumulated corpus in the event of their demise.
• Tax Benefits: Deductions under Section 80C and Section 80CCD, subject to conditions.

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Awareness and Outreach Measures

• Institutional Awareness Initiatives: The PFRDA has undertaken extensive awareness programmes at State and District levels, including training workshops and outreach camps to promote enrolment.
• Digital Enablement: Online onboarding facilities such as e-APY, net banking, mobile applications, and bank portals have been activated to improve accessibility.
• Information Dissemination: Multilingual APY flyers in Hindi, English, and 22 scheduled languages have been released, along with QR-code-based access to APY services, podcasts, videos, and call centres. 

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