Atal Pension Yojana: Key Highlights

Atal Pension Yojana: Key Highlights

Q. “The Atal Pension Yojana provides ample social security coverage for persons in the unorganised sector.” Discuss in the context of the highlights of the scheme.

Atal Pension Yojana: Requirement

• GoI is concerned about old age income security of working poor
• Focus is on encouraging and enabling them to be included in NPS/National Pension Scheme
• Swavalamban scheme inadequate due to lack of clearness about pension benefits following 60 years of age
• Unorganised sector constitutes 88% of population of Indian workers totaling 47.29 crore: 66th Round of NSSO Survey 2011-2012

Key Features

• FM announced Atal Pension Yojana in Budget Speech for 2015-2016
• This Yojana will be focused on citizens in the unorganised sector joining the scheme
• APY is administered by the PFRDA (Pension Fund Regulatory and Development Authority)
• The scheme is also open to those who lack membership of statutory social schemes
• Under the Yojana, subscribers will get fixed pension of INR 1000/2000/3000/4000/5000 per month depending upon contributions at the age of 60
• Contributions will vary depending upon the age at which APY is joined
• Minimum age at which APY can be joined is 18 years; maximum is 40
• Minimum contribution period under a subscriber will be 20 years or more
• Benefit of fixed pension to be guaranteed by the GoI
• Centre will co-contribute 50% of the contribution of subscribers or INR 1000 (depending upon which sum is lower) for a duration of 5 years (2015-2016 to 2019-2020) who had joined NPS prior to 31st December 2015
• Subscribers should also not be income tax payers
• Scheme will be launched from June 1st, 2015
• Unless opting out, existing subscribers of Swavalamban scheme will automatically migrate to APY
• Contribution levels will vary depending upon how early/late subscribers join
• This Yojana is open to all bank account holders that are not members of any statutory social scheme
• All bank account holders under the category which is eligible may join APY with auto-debit facility to accounts linked to reduction in contribution collection charges
• Through the means of the National Pension Scheme, Points of Presence (Service Providers) and Aggregators under the Swavalamban Scheme will enroll subscribers

APY Funding

• Government will offer fixed pension guarantee for subscribers
• It will contribute half of the subscriber contribution or INR 1000 per annum whichever is lower to subscribers who are eligible
• The government will also reimburse the promotional cum developmental activities; this includes incentives


• The contribution levels and fixed monthly pension to subscribers will be based on age of joining.
• Those joining at 18 years will have to give a monthly amount between INR 42 and 210 to get a fixed monthly pension between INR 1000 to 5000 per month
• Those joining at 40 years will have to contribute between INR 291 and 1454 to get monthly contributions of the same amounts
• Objective of the scheme is to offer defined pensions


The Atal Pension Yojana is a good way forward to provide pension of a fixed amount to workers in the unorganised sector who lack access to social security.
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  • RE: Atal Pension Yojana: Key Highlights -Hitesh Behal (03/12/15)
  • Hello .
    I would like to know more about that and one more thing..whom to concern about that.
    where could i apply that.

    thanks and regards.
    Hitesh behal
  • RE: Atal Pension Yojana: Key Highlights -kiran (03/07/15)
  • clear and lucid about this
    really helpful for us