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Atal Pension Yojana

Atal Pension Yojana

Atal Pension Yojana targets the unorganized sector, a vital part of India’s workforce. It replaced Swavalamban Yojana, which offered uncertain pension benefits. Atal Pension Yojana ensures social security for older, low-income individuals, aiming to provide them with guaranteed benefits at age 60.

What is Atal Pension Yojana?

Atal Pension Yojana is a pension scheme launched by the Government of India in 2015. The objective of APY is to provide social security to the citizens, especially the underprivileged and unemployed.

  • Atal Pension Yojana (Atal Pension Yojana in Hindi) is a guaranteed pension scheme that promises a fixed monthly pension after 60 years.
  • It is available to citizens aged 18-40 years. Older citizens already covered by other pension schemes are not eligible.
  • People contribute to savings bank accounts by setting up recurring debits until they reach the age of 60 years

Key features

  • The scheme ensures a monthly pension ranging from Rs 1,000 to Rs 5,000.
  • The Government of India will chip in 50% of what the subscriber contributes annually, or Rs 1,000 per year, whichever is lower.
  • The government contributes to individuals who are not covered by any pension scheme and who do not pay income tax.
  • The government will contribute for up to 5 years for eligible participants.
  • Those who enrolled between June 1, 2015, and March 31, 2016, are eligible.


  • The Atal Pension Yojana aims to safeguard citizens, especially those in the unorganized sector, from various adversities such as diseases and accidents.
  • Beneficiaries of the scheme will receive monthly payments determined by their savings over time.
  • In case of the beneficiary’s demise, their spouse will continue to receive the pension payments.
  • If both the beneficiary and their spouse pass away, a lump sum will be provided to the nominee designated by them.

Eligibility Criteria

  • The APY scheme is available to all citizens of India.
  • To be eligible, customers must be between 18 and 40 years of age.
  • The contribution level varies depending on when a subscriber enrolls; it is lower for early joiners and higher for those who join later.
  • You need to provide proof of possession and authenticate your Aadhaar along with giving your Aadhaar number.
  • The Aadhaar number must be provided for both the APY pension and savings account.
  • Aadhaar number is necessary for debiting contribution installments and crediting government co-contribution.


  • If someone between the ages of 18 to 40 joins and contributes to the Atal Pension Yojana (APY), they’ll receive a fixed pension ranging from Rs 1000 to Rs 5000.
  • The contribution amounts will start low for those who join early and increase gradually over time.
  • If the subscriber passes away, their spouse will receive the same pension amount.
  • After the spouse dies, the nominees will receive the pension amount.
  • Contributions made to the Atal Pension Yojana (APY) are eligible for tax deductions, similar to contributions made to the National Pension System (NPS).
  • Tax benefits include an additional deduction of Rs 50,000 under section 80CCD(1).

Major Achievements

  • Atal Pension Yojana has had a wonderful journey of five years, as of May 9, 2020, the total enrollment under the scheme was 2,23,54,028.
  • About 50 lakh customers were enrolled in the first two years, which doubled to 100 lakh in the third year and 1.50 crore in the fourth year.
  • The scheme had enrolled around 70 lakh participants in the last financial year, 2020.
  • Apart from enrolling a record number of participants, the scheme has rolled out nationwide, with men outnumbering women in membership at a ratio of 57 to 43 in all states and union territories.
  • As of 30 April 2020, the total number of subscribers of NPS and Atal Pension Yojana has exceeded 3.46 crore.

Read Also: Performance of the Niti Aayog since its inception

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