Why in news?
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030–31. The decision includes ongoing government support for awareness campaigns, capacity building and gap funding to ensure the scheme’s sustainability and outreach among unorganised sector workers.
Background
Launched on 9 May 2015, APY aims to provide old‑age income security to India’s unorganised workforce. Any Indian citizen aged 18–40 can subscribe, contributing regularly to receive a guaranteed pension of ₹1,000–₹5,000 per month starting at age 60. The scheme, administered by the Pension Fund Regulatory and Development Authority (PFRDA), also offers the spouse a pension after the subscriber’s death and refunds the accumulated corpus to nominees. Initial subscribers meeting certain conditions received a government co‑contribution to encourage enrolment. As of 19 January 2026, over 8.66 crore people have joined APY, making it one of the world’s largest micro‑pension programmes.
Cabinet decision and implications
- Continuation till 2030–31: The government will continue funding APY’s promotional and developmental activities as well as gap funding required to keep the scheme viable. This support helps widen coverage among unorganised workers and ensures timely payment of pensions.
- Awareness and capacity building: Funds will be used to organise awareness campaigns, training for bank staff and enrolment drives so that more workers understand and join the scheme.
- Enhanced social security: By extending the scheme, the government aims to strengthen financial inclusion and progress toward a “pensioned society,” aligning with the vision of Viksit Bharat @ 2047.
Scheme highlights
- Affordable contributions: The contribution amount depends on the subscriber’s age and chosen pension level. The younger one joins, the lower the monthly contribution.
- Guaranteed pension: Upon reaching 60 years, subscribers receive a fixed monthly pension. In case of the subscriber’s death, the spouse continues to receive the pension, and the accumulated amount goes to nominees.
- Portability: APY accounts are linked to bank accounts and remain portable across banks and states, allowing migrants to continue contributions without disruption.
Conclusion
Extending APY ensures that millions of workers in the unorganised sector can look forward to a secure income in their old age. Continued government support for awareness and capacity building will be critical in expanding its reach and making India a nation where retirement security is the norm rather than the exception.
Source: PIB
