Atal Pension Yojana (APY) Details & Benefits

Atal Pension Yojana (APY) is named after the eleventh Prime Minister of India, Atal Bihari Vajpayee.  The pension scheme will address any old age income security needs of the workers in the unorganized sector. FM Arun Jaitley has announced this scheme along with

This Atal Pension Yojana will replace NPS Lite, the Swavalamban Yojana by UPA government. The government will guarantee a fixed pension under this scheme and will also co-contribute 50% of the premium. But the govt. contribution is limited to Rs 1,000 each year for five years. This benefit is available only for the new accounts opened before December 31, 2015.

Depending on the contribution and period, Atal Pension Yojana will provide a defined pension to the subscribers. Pension Fund Regulatory and Development Authority (PFRDA) will administer this scheme.

Atal Pension Yojana

Atal Pension Yojana (APY) Details

Eligibility: Workers who are aged between 18 years and 40 years in the unorganised sector are eligible to avail the scheme. For that they need to have an existing bank accounts. Members of any other statutory social security scheme can not avail this scheme.

Must Read: Youngest Sukanya Samriddhi Account Holder

Government Contribution – People who opens the Atal Pension Yojana account before 31st December 2015, Government will provide a co-contribution amount of 50% of the subscriber contribution or Rs. 1,000 per annum, whichever is lower. To encourage people to join the scheme, Govt. will also reimburse the incentive to the contribution collection agencies .

Minimum Limit – The contribution amount will vary as per the age while starting the account. If a person joins as early as at the age of 18 years, the contribution required also will be low as compared to a person who joins late. They will start getting the pension from the age of 60 years. To get a pension amount of Rs. 1,000 per month, an 18 years old subscriber needs to contribute a minimum of Rs. 42 per month. In a similar way, for a 40 years old subscriber, minimum contribution required is Rs. 291 per month.

Maximum Limit – To get Rs. 5,000 pension per month from the age of 60 years,  an 18 years old subscriber needs to contribute Rs. 210 per month. Similarly a 40 years old subscriber needs to contribute Rs. 1,454 per month in order to get the same amount as a pension .

Payment Mode: Like Jeevan Jyoti Bima Yojana & Suraksha Bima Yojana, APY also has direct auto-debit facility as the only payment method. This method will also reduce the contribution collection charges. But the subscriber needs to ensure a sufficient balance in the Bank account for auto debiting. Bank will levy penalty in case of delay in contributions.

Must Read: PNB is the First Bank to Start Operating Sukanya Samriddhi Account

Enrollment Points: The below agencies will enroll for the scheme by setting up National Pension System.

  • All points of presence (service providers)
  • Aggregators under Swavlamban Scheme

Minimum & Maximum Amount of Pension: As per the APY scheme the minimum pension amount is Rs. 1,000 per month. The maximum amount of pension can be Rs. 5,000 per month, as per the contribution level.

Minimum& Maximum Period of Contribution: According to the minimum & maximum age of joining (min 18 years and max 40 years), minimum contribution period is 20 years whereas the maximum period of contribution can be 42 years.

The co-contribution option by Govt. definitely will give a huge boost to launch the scheme. After reading the Atal Pension Yojana details do you think it is a better option than NPS Lite? Share your thoughts in the comments below.


  1. pratap dhumal May 11, 2015
    • Manidipa May 20, 2015
  2. rabindra kumar panigrahi June 17, 2015
  3. MD FAZLUL HAQUE November 4, 2015

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