Atal Pension Yojana (APY): Guaranteed Pension for the Unorganised Sector
Last updated: 2026-11-13 · MockMentor
Atal Pension Yojana (APY) gives workers in the unorganised sector a guaranteed monthly pension of ₹1,000 to ₹5,000 from age 60. It was launched on 9 May 2015 in Kolkata and runs on the NPS platform under PFRDA. In January 2026 the Cabinet approved its continuation, with promotional and gap funding, till 2030-31.
In one line: save a small fixed amount every month from 18 to 40, and get a pension guaranteed by the Government from 60.
At a glance
| Item | Details |
|---|---|
| Launched | 9 May 2015 (operational 1 June 2015) |
| Regulator | PFRDA |
| Entry age | 18 to 40 (at least 20 years of contribution) |
| Pension | ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 a month |
| Not eligible | Anyone who is or has been an income tax payer (from 1 October 2022) |
| Contribution mode | Auto-debit, monthly, quarterly or half-yearly |
| Women | 48% of active subscribers |
Three guarantees
- A fixed pension for life from 60.
- The same pension to the spouse after the subscriber's death.
- Return of the accumulated corpus to the nominee after both die.
If actual returns fall short of what the guaranteed pension needs, the Central Government makes up the gap.
Sample contributions
| Entry age | For ₹1,000 pension | For ₹5,000 pension |
|---|---|---|
| 18 | ₹42 a month | ₹210 a month |
| 30 | ₹116 a month | ₹577 a month |
| 40 | ₹291 a month | ₹1,454 a month |
Facts to remember
- The Government co-contribution (50%, up to ₹1,000 a year) was only for those who joined between 1 June 2015 and 31 March 2016.
- Voluntary exit before 60 returns only the subscriber's own contributions with interest.
Possible exam questions
- How can India build a pension safety net for informal workers? Assess the role of APY.
- Why does APY exclude income tax payers?
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
More in Finance Ministry schemes
- National Pension System (NPS)
- Unified Pension Scheme (UPS)
- PM Vaya Vandana Yojana (PMVVY)
- PM Jeevan Jyoti Bima Yojana (PMJJBY)
- PM Suraksha Bima Yojana (PMSBY)
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