March 27, 2023

The Atal Pension Yojana (APY), a pension scheme launched by the government of India, is aimed at workers in the unorganised sector. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture.

With guaranteed returns after retirement, APY aims to assist subscribers in saving money for their golden years while they are still employed. The benefit of minimum pension would be guaranteed by the government.

Pension to be received under APY

Under the APY scheme, a minimum guaranteed pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 per month will begin upon reaching the age of 60, depending on the subscribers’ contributions for their chosen pension amount.

How much should you put in to get a pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000?

Below is only the indicative chart, as it depends on the subscriber’s age and monthly installment.

Indicative Monthly Contribution Chart


Source: PFRDA’s APY brochure

The contributions can be made at monthly/quarterly/half yearly intervals through an autodebit facility from the savings bank account/ post office savings bank account of the subscriber. The monthly/quarterly/half-yearly contribution depends upon the intended/desired monthly pension and the age of subscriber at entry. Yes, the Toll Free Helpline number for APY Scheme is 1800-110-069.

Contribution deadline

Contributions to APY may be made through a savings bank account or a post office savings bank account in the case of monthly contributions, on any date of the specific month; in the case of quarterly contributions, on any day of the first month of the quarter; and in the case of half-yearly contributions, on any date of the first month of the half-year.

How to increase or decrease the monthly contribution for higher or lower pension amount?

a) A subscriber may choose, once per fiscal year, to reduce or increase the pension amount while it is still in the accumulation phase.

b) In the case of an upgrade, the subscribers must pay the difference in contribution at a rate of 8% per year on a monthly compounding basis, whereas in the case of a downgrade, the excess contribution amount collected from the subscribers is returned to them along with the profits made.

c) The subscribers will be required to pay a fee of Rs. 50 for any upgrade or downgrade outside of error cases. This fee will be split equally between PoP-APYSP and CRA.

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