Schemes

Atal Pension Yojana

Also: APY, Atal Pension Yojana scheme

Definition

Atal Pension Yojana (APY), launched in May 2015, is a voluntary, contributory pension scheme for workers, especially in the unorganised sector, that guarantees a monthly pension of 1,000 to 5,000 rupees from age 60, depending on the contribution and the age of joining.

Summary card: Atal Pension Yojana. Launched: 9 May 2015. Administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System architecture. Entry age: 18 to 40 years; contributions continue until age 60. Guaranteed pension: 1,000, 2,000, 3,000, 4,000 or 5,000 rupees a month. Since October 2022, income tax payers are not eligible to join. Pension continues to the spouse after the subscriber's death, and the corpus goes to the nominee after both — Summary card © UPSCPrep.in

Background and evolution

The scheme was launched along with two other social security schemes in 2015: Pradhan Mantri Jeevan Jyoti Bima Yojana, a low-cost life insurance scheme, and Pradhan Mantri Suraksha Bima Yojana, a low-cost accident insurance scheme. Together they formed a package of basic protection for people with bank accounts, especially those opened under Jan Dhan.

Most Indian workers, nearly nine in ten, are in the informal sector, without employer pensions or provident funds. As life expectancy rises and joint families weaken, old age without income has become a growing risk. Earlier attempts to extend pensions, such as the NPS-Swavalamban scheme of 2010, had limited uptake and gave no guaranteed amount.

APY was designed to be simple and predictable: workers choose the pension they want, and the scheme tells them the fixed monthly contribution required based on their age. The government guarantees the pension, making up any shortfall if investment returns are lower than assumed, and keeps any excess for subscribers. This page examines APY as a social security product for the informal sector, looking at its design, uptake and adequacy, rather than at the broader pension system.

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Last reviewed: 23 October 2026 · Original UPSCPrep.in content.