Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a government-backed pension scheme for workers in the unorganised sector — people who do not have access to formal pension systems like EPF or NPS through an employer. APY guarantees a fixed monthly pension of ₹1,000 to ₹5,000 after the age of 60, depending on the contribution amount and the age at which the subscriber joins. The younger you join, the lower your monthly contribution for the same pension.

The government co-contributes 50% of the subscriber's contribution or ₹1,000 per year (whichever is lower) for those who are not income tax payers and joined the scheme between 2015 and 2019. For new subscribers from October 2022 onwards, this government co-contribution is no longer available — however, the guaranteed pension benefit remains. APY is available to Indian citizens aged 18–40 years with a savings bank account.

A key feature of APY is the guaranteed pension — unlike market-linked NPS, the pension amount is fixed and guaranteed by the government regardless of market conditions. Upon the subscriber's death, the spouse continues to receive the pension; after the spouse's death, the accumulated corpus is returned to the nominee. APY is available through all banks and India Post. Our editorial team verified contribution rates and government co-contribution rules against PFRDA official guidelines, July 2026.