[Scheme] Atal Pension Yojna (APY)

The government decided that Atal Pension Yojna (APY), announced in the Budget, will be launched on June 1 and will focus on all citizens in the unorganised sector entitling them to a pension of up to Rs 5,000 per month after 60 years of age.

Infact the Government had started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due to lack of clarity of pension benefits at the age after 60.The Finance Minister has, therefore, announced a new initiative called Atal Pension Yojana(APY) in his Budget Speech for 2015-16.


The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.


Under the APY, the subscribers would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.

The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. The benefit of fixed pension would be guaranteed by the Government.

Funding of APY:


The Central Government would also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31stDecember, 2015 and who are not income tax payers.


Government would provide fixed pension guarantee for the subscribers;

  • would co-contribute 50% of the subscriber contribution or Rs. 1000 per annum, whichever is lower, to eligible subscribers; and
  • would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.

Pension Fund Regulatory and Development Authority:

  • The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulatory authority which was established by Government of India on August 23 2003. PFRDA is authorized by Ministry of Finance, Department of Financial Services.


  • The Authority shall consist of a Chairperson and not more than five members, of whom at least three shall be whole-time members, to be appointed by the Central Government.

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