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What is Atal Pension Yojana?

Atal Pension Yojana (APY) was introduced by the Indian Government through the 2015-16 Union budget. The Atal Pension Scheme focuses on the poor citizens working in the large unorganised sector. To provide the poor working in the unorganised sector with income security during their senile age, APY encourages them to voluntarily save for their retirement and also co-contributes to the scheme.

Features of APY

  • Minimum Monthly Income

The APY guarantees a minimum monthly income as a pension amount between Rs. 1000 and Rs. 5000 to its subscribers upon reaching the age of 60.

  • Government as a Co-contributor

Besides the voluntary APY contribution of the subscriber, the Government shall co-contribute the lower value between 50 percent of the subscriber’s contribution and Rs. 1000 per annum.

  • Inapplicability for Beneficiaries of other Social Security Schemes

If the subscriber is an income taxpayer or is a beneficiary of any other Statutory Social Security Schemes such as Employees Provident Fund(EPF), the Government’s co-contribution shall not apply for APY subscribers.

  • Duration of Co-contribution for APY

The Government’s co-contribution to each eligible subscriber who joined the Atal Pension Scheme between 1 June 2015 and 31 December 2015, shall be applicable for five years.

  • Migration from Swavalamban Scheme

The benefit of the Government’s co-contribution under APY would not exceed five years for all subscribers including those who migrated from the Swavalamban scheme.

Atal Pension Yojana Benefits

  • Early Subscription Benefit:

Subscribers who enroll for the Atal Pension Scheme at an early age shall pay a lesser monthly subscription than those who join at a later age.

  • Mode and Frequency of Contribution:

Contributions to APY can be made on a monthly/quarterly/half-yearly basis via the auto-debit provision from the subscriber’s savings bank account or post office savings account.

  • Returns on APY Contribution:

If the actual returns on a subscriber’s APY contribution are higher than the minimum guaranteed pension fixed by the Government, the balance amount is credited into the subscriber’s account

  • APY Corpus in the event of the death of a Subscriber:

In the event of an APY subscriber’s death, the pension amount shall be received by the subscriber’s spouse, and in the event of both the subscriber and the spouse’s death, the entire corpus amount shall be handed over to a nominee as designated by the subscriber.

  • APY Corpus in the event of a subscriber’s premature death:

In case of an APY subscriber’s premature death, the spouse may choose to continue to contribute to the APY for the remaining period.

  • Tax Benefits:

The subscriber’s annual contribution under Atal Pension Scheme is eligible for the same income tax treatment as under the National Pension Scheme.

An amount of upto Rs. 1,50,000 contributed annually by the subscriber to the Atal Pension Yojana is eligible for tax deduction under Section 80CCD(1) of the Indian Income Tax Act, 1961, provided the total amount of deductions under Sections 80C, 80CCC, and 80CCD does not exceed Rs. 1,50,000.

Eligibility Criteria For Atal Pension Yojana

  • All Indian citizens from the age of 18 years to 40 years are eligible to enroll in the Atal Pension Yojana

  • KYC verification of the subscriber is mandatory, and subscriber’s Aadhaar and a legitimate mobile number are necessary for KYC verification and ease of operation of the scheme

  • Post office savings account or Savings bank account linked with Aadhaar

How to Apply for APY Scheme?

  • The application process for subscribing to APY can be initiated through any of the banks in India.

  • The APY enrolment application forms are available online on the bank’s website and offline at the bank, in several Indian languages.

  • Fill in the required details in the application form and submit it to your bank.

  • Submit a functional and authentic mobile number and an Aadhaar card copy along with the application form

  • Once the application is approved, the applicant shall receive a confirmation on the mobile number provided at the time of the application process

APY Monthly Contributions

A subscriber’s APY contribution depends upon the age at which he/she begins to contribute and the amount of monthly pension he/she would want to receive upon retirement. The table given below is indicative of the APY contributions every month for a given age and pension amount.


Minimum Guaranteed Pension of Rs. 1K Per Month

Minimum Guaranteed Pension of Rs. 2KPer Month

Minimum Guaranteed Pension of Rs. 3K Per Month

Minimum Guaranteed Pension of Rs. 4K Per Month

Minimum Guaranteed Pension of Rs. 5K Per Month

Indicative Corpus Amount to the Nominee

Rs. 1,70,000

Rs. 3,40,000

Rs. 5, 10,000

Rs. 6,80,000

Rs. 8,50,000

Age at Entry

Years of Contribution

Monthly Contribution (in Rs.)

Monthly Contribution (in Rs.)

Monthly Contribution (in Rs.)

Monthly Contribution (in Rs.)

Monthly Contribution (in Rs.)











































Important Facts to Know about APY

  • Increasing the APY Contribution:

The contribution amount can be increased by the subscriber by placing a request with the concerned bank and submitting the necessary documents.

  • Penalty in case of Delayed payment:

Depending on the subscriber’s contribution, an extra amount of upto Rs. 10 per month shall be levied as a penalty by the bank in case of delayed payment by the subscriber. This fixed amount or penalty shall be included in the pension corpus of the subscriber.

  • Discontinuation of APY Contributions:

Any discontinuation of contributions by the subscriber shall result in freezing of the APY account post 6 months, deactivation after 12 months, and closure after 2 years.

  • Exit from APY:

Exit before the subscriber’s age touches 60 is permissible only in exceptional situations such as the subscriber’s death or terminal illness.

In the event of exit from the Atal Pension Scheme before the age of 60 years for any other reason, the subscriber shall receive only the corpus that includes his/her APY contribution and the interest earned on it. The Government’s co-contribution and interest earned on it shall not be returned to the subscriber.

While you gather information on the Atal Pension Scheme on Bajaj Markets, it’s time you think about your retirement too. If you are in the process of retirement planning and exploring investment options, then Bajaj Markets is a one-stop solution. ULIP plans on Bajaj Markets help you prepare for your pension and retirement through market-linked returns along with life insurance cushioning your retirement life. Applying for retirement plans on Bajaj Markets is very easy and completely online, with minimal documentation.

FAQs on Atal Pension Yojana

What are the minimum and maximum age criteria to enroll for APY?

The minimum age for APY enrolment is 18 years and the maximum age of joining is 40 years.

How many APY accounts can I open?

A subscriber cannot open more than one APY account in his/her name and it is unique.

Can I apply for APY online?

Yes, the APY subscription can be applied online through the internet banking facility of your savings account provided by some banks.

What are the documents required to apply for APY?

All you need to apply for the Atal Pension Scheme is an Aadhaar copy, a valid mobile number linked to Aadhaar, and an active savings bank account.

Is there a last date to join the Atal Pension Yojana?

There is no last date to enroll for the Atal Pension Yojana. However, submitting an APY application before the 1st of June of any financial year allows you to be an APY subscriber.

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