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Atal Pension Yojana (APY)

This page covers about the Atal Pension Yojana.

Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers in unorganised sector. It encourages the workers in unorganised sector to voluntarily save for their retirement. The Government had launched the scheme with effect from 1st June, 2015. The scheme replaces the Swavalamban Yojana / NPS Lite scheme.

Benefits of APY

  • Fixed pension for the subscribers ranging between Rs.1000 to Rs. 5000, if s/he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if s/he joins late.
  • The same pension is payable to Spouse after death of Subscriber.
  • Return of indicative pension wealth to nominees after death of spouse.
  • Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS). The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1).

Eligibility for APY

Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.

Any individual who is eligible to receive benefits under the APY will have to furnish proof of possession of Aadhaar number or undergo enrolment under Aadhaar authentication. An APY subscriber will have to get the Aadhaar number recorded in his or her APY pension account and also in his/ her savings account where the periodic pension contribution instalments are debited and government co-contribution is to be credited.

Age of joining and contribution period

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.

Focus of APY

Mainly targeted at unorganised sector workers.

Enrollment and Subscriber Payment

All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges.

Enrollment agencies

All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enroll subscribers through architecture of National Pension System.

Operational Framework of APY

It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilised to enroll subscribers under APY.

Funding of APY

Government would provide

  • fixed pension guarantee for the subscribers;
  • Under the APY, the Central Government’s co-contribution of 50% of the subscriber’s contribution upto Rs. 1000 per annum, was available to each eligible subscriber, for a period of 5 years, i.e. from 2015-16 to 2019-20, who join APY before 31st March, 2016 and who is not a beneficiary of any social security scheme and is not an income tax payer.
  • Government would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.

Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers

The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below. For example, to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.

Table of contribution levels, fixed monthly pension of Rs. 1,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana

Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 42 1,000 1.7 Lakh
20 40 50 1,000 1.7 Lakh
25 35 76 1,000 1.7 Lakh
30 30 116 1,000 1.7 Lakh
35 25 181 1,000 1.7 Lakh
40 20 291 1,000 1.7 Lakh

Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 84 2,000 3.4 lakh
20 40 100 2,000 3.4 lakh
25 35 151 2,000 3.4 lakh
30 30 231 2,000 3.4 lakh
35 25 362 2,000 3.4 lakh
40 20 582 2,000 3.4 lakh

Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse(in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 126 3000 5.1 Lakh
20 40 150 3000 5.1 Lakh
25 35 226 3000 5.1 Lakh
30 30 347 3000 5.1 Lakh
35 25 543 3000 5.1 Lakh
40 20 873 3000 5.1 Lakh

Table of contribution levels, fixed monthly pension of Rs. 4,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse(in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 168 4000 6.8 Lakh
20 40 198 4000 6.8 Lakh
25 35 301 4000 6.8 Lakh
30 30 462 4000 6.8 Lakh
35 25 722 4000 6.8 Lakh
40 20 1164 4000 6.8 Lakh

Table of contribution levels, fixed monthly pension of Rs. 5,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana.

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 210 5000 8.5 Lakh
20 40 248 5000 8.5 Lakh
25 35 376 5000 8.5 Lakh
30 30 577 5000 8.5 Lakh
35 25 902 5000 8.5 Lakh
40 20 1454 5000 8.5 Lakh

For more information, contact APY Information Desk - Call Centre: 1800 110 069

Source: National Pension System Trust

Related resources

  1. FAQs on APY
  2. APY calculator
  3. Forms related to APY
2.96750902527
Sathya narayanan Sep 29, 2018 11:40 AM

Kindly reduce the contribution year as 50. Pension as started at the age 50. That will be very useful to them some people did not know about tis pension schemes..

rani Jan 22, 2016 02:09 PM

how to return pay pension one month
but not interested please how to return amount

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