Atal Pension Yojana (APY) — How to Apply, Benefits & Pension Calculator

The Atal Pension Yojana (APY) is a government-backed pension scheme that guarantees a fixed monthly pension of ₹1,000 to ₹5,000 after you turn 60. It is designed for workers in the unorganised sector — daily wage earners, small shopkeepers, housewives, and anyone who does not have a formal retirement plan.

Launched on 9 May 2015 by PM Narendra Modi, APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and has over 5 crore subscribers across India.

What is Atal Pension Yojana?

APY is a defined benefit pension scheme — meaning you know exactly how much pension you will get. Unlike market-linked schemes, your pension amount is guaranteed by the Government of India.

Key highlights:

• Fixed monthly pension: ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000
• Pension starts at age 60 and continues for life
• After the subscriber's death, spouse receives the same pension
• After both pass away, the nominee gets the corpus amount
• Contributions are auto-debited from your bank account

Who is Eligible for APY?

Note: If you have a PM Jan Dhan Yojana account, you can directly enrol in APY through the same bank.

The minimum contribution period is 20 years (if you join at age 40, you contribute till 60).

APY Contribution Table (Monthly)

Your monthly contribution depends on your age at joining and the pension amount you choose. The earlier you join, the less you pay:

Pension of ₹1,000/month

Pension of ₹2,000/month

Pension of ₹3,000/month

Pension of ₹4,000/month

Pension of ₹5,000/month

Corpus Amount Returned to Nominee

How to Apply for Atal Pension Yojana

Method 1: Through Your Bank (Offline)

1. Visit your bank branch where you have a savings account
2. Fill the APY registration form (available at the branch or download from jansuraksha.gov.in)
3. Provide your Aadhaar number and mobile number
4. Choose your pension amount (₹1,000 to ₹5,000)
5. Choose contribution frequency — monthly, quarterly, or half-yearly
6. Nominate a spouse/family member
7. Ensure sufficient balance in your account for auto-debit

Method 2: Online via Net Banking

Most major banks (SBI, PNB, BOB, HDFC, ICICI, etc.) allow APY enrolment through net banking:

1. Log in to your net banking portal
2. Go to Social Security Schemes or APY section
3. Fill in details — Aadhaar, pension amount, nominee
4. Confirm and submit
5. You will receive a PRAN (Permanent Retirement Account Number)

Method 3: Online via UPI/Apps

Several banks and apps now offer APY registration:

• AadhaarPay and bank mobile apps
• eNPS portal at enps.nsdl.com

For Jan Dhan Account Holders

If you opened an account under PM Jan Dhan Yojana, you can enrol in APY at the same branch. Auto-debit will be set up on your Jan Dhan account. This was one of the key design features — linking social security to financial inclusion.

Government Co-Contribution

The government offered a co-contribution of 50% of the subscriber's contribution (or ₹1,000 per year, whichever is lower) for 5 years.

Eligibility for co-contribution:

• Enrolled in APY between 1 June 2015 and 31 March 2016
• Not a beneficiary of any other social security scheme
• Not an income tax payer

This co-contribution benefit is no longer available for new subscribers. But if you enrolled during that window, the benefit was credited to your account.

How to Check APY Account Status

Using PRAN

1. Visit the NPS/APY portal at npscra.nsdl.co.in
2. Go to "APY e-PRAN/Transaction Statement"
3. Enter your PRAN number and date of birth
4. Download your statement

Through Your Bank

• Log in to net banking and check under APY/pension section
• Visit your bank branch and request a statement
• Some banks also show APY balance on passbook updates

Toll-Free Number

Call the national toll-free helpline: 1800-180-1111 or 1800-110-001

How to Change Your Contribution Amount

You can increase or decrease your pension amount (and therefore your contribution) — but this option is available only once a year, in the month of April.

Steps:

1. Visit your bank branch or use net banking
2. Submit a request to change pension slab (e.g., from ₹1,000 to ₹3,000/month)
3. Your new contribution amount will be calculated based on your current age
4. Auto-debit amount changes from the next cycle

Nominee Rules

• You must nominate a spouse (if married) as the default nominee
• If unmarried, you can nominate any person
• After marriage, you should update your nominee to your spouse
• On subscriber's death: spouse gets the same pension for life
• On death of both subscriber and spouse: nominee receives the corpus amount

Exit and Withdrawal Rules

Normal Exit (at age 60)

• Pension payments begin
• You receive a guaranteed monthly pension for life
• Spouse continues to receive pension after your death

Premature Exit (before age 60)

• Allowed only in exceptional circumstances (terminal illness, death)
• If you voluntarily exit before 60: you get back only your contributions plus actual returns earned (not the guaranteed pension)
• The government co-contribution (if any) and its returns are forfeited

Death Before 60

• Spouse can continue contributing and receive pension at 60, OR
• Spouse can exit and receive the accumulated corpus
• If no spouse, nominee receives the corpus

Default on Contributions

If you miss payments, penalties are charged:

• After 6 months of non-payment: account is frozen
• After 12 months: account is deactivated
• After 24 months: account is closed, and you get only your contribution plus actual returns

Tax Benefits Under APY

APY contributions qualify for tax deductions under Section 80CCD of the Income Tax Act:

• Section 80CCD(1): Deduction up to 10% of gross income (within the ₹1.5 lakh limit of Section 80C)
• Section 80CCD(1B): Additional deduction of ₹50,000 over and above the 80C limit (shared with NPS)

Important: From 1 October 2022, new APY subscribers who are income tax payers are not eligible to join the scheme. Existing subscribers who became tax payers can continue.

If you also contribute to EPF/PF, your combined deduction under Section 80C applies. Plan your investments accordingly.

APY vs NPS — Which is Better?

Bottom line: APY is ideal if you want a simple, guaranteed pension with low contributions. NPS is better if you want higher returns and are comfortable with market risk.

Frequently Asked Questions

Can I have both APY and NPS?

Yes, you can have both an APY account and a separate NPS account. They are managed under the same PFRDA framework.

Can I have two APY accounts?

No. Only one APY account per person is allowed.

What happens if I already have EPF?

You can still join APY. It is separate from EPF/PF. Both can run in parallel.

Is APY pension taxable?

Yes, the pension received is added to your income and taxed as per your slab. However, the corpus received by the nominee is tax-free.

Can NRIs join APY?

No. APY is only for resident Indian citizens.

How to Calculate Your APY Pension

Use the official APY calculator or follow this simple approach:

1. Note your current age
2. Choose your desired pension (₹1,000 to ₹5,000)
3. Look up the contribution table above
4. Multiply monthly contribution × 12 × years till 60 = total investment
5. Compare with the guaranteed corpus and pension

For example: A 25-year-old choosing ₹5,000/month pension pays ₹376/month for 35 years = ₹1,57,920 total. In return, they get ₹5,000/month pension for life + ₹8.5 lakh to nominee.

Summary

APY is one of the simplest and safest pension options for Indians who don't have formal retirement benefits. For just ₹210/month starting at age 18, you can secure ₹5,000/month pension for life. Start early, pay less, and retire with dignity.

Last updated: February 2026. Always verify details on jansuraksha.gov.in before applying.