Atal Pension Yojana contribution chart and rules — ₹1,000 to ₹5,000 pension, age 18–40

Atal Pension Yojana (APY) guarantees a pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 a month from age 60, in exchange for a fixed monthly contribution that depends on your age when you join. It is open to Indian citizens aged 18 to 40 with a savings account, but since 1 October 2022 people who are or have been income-tax payers cannot join. After the subscriber's death the same pension goes to the spouse, and after both, a fixed corpus is returned to the nominee. The Union Cabinet extended the scheme until 2030-31 in January 2026. APY is administered by PFRDA through banks and post offices. The contribution examples below follow the published chart; check the current chart at your bank or on PFRDA's website before enrolling.

How APY works

Your bank auto-debits a fixed amount each month (or quarter, or half-year) from your savings account.
The contribution is fixed by your entry age and the pension you choose, and stays the same until 60.
The money is invested by pension funds under the NPS framework.
At 60 you receive the guaranteed pension for life. If actual returns are higher than needed, the excess may be passed on; if they are lower, the government makes up the difference.
On your death, your spouse receives the same pension for life. After both deaths, the nominee receives the corpus.

Contribution examples from the chart

Entry age	Years of contribution	₹1,000 pension	₹3,000 pension	₹5,000 pension
18	42	₹42 a month	₹126 a month	₹210 a month
25	35	₹76 a month	₹226 a month	₹376 a month
30	30	₹116 a month	₹347 a month	₹577 a month
35	25	₹181 a month	₹543 a month	₹902 a month
40	20	₹291 a month	₹873 a month	₹1,454 a month

The corpus returned to the nominee after the death of both the subscriber and spouse is the pension wealth accumulated up to the subscriber's age 60, as set for the chosen pension; published contribution charts give it as about ₹1.7 lakh for a ₹1,000 pension up to about ₹8.5 lakh for a ₹5,000 pension (we could not confirm these figures in an official document, so check the current chart with your bank or on npstrust.org.in).

Worked example. Meena, 25, a domestic worker who does not pay income tax, chooses the ₹5,000 pension. She pays ₹376 a month for 35 years, a total of ₹376 × 420 = ₹1,57,920. From 60 she receives ₹5,000 a month for life.

What the guarantee is worth in real terms

The pension is fixed in rupees and does not rise with inflation. ₹5,000 in 35 years, at an assumed 6% inflation, buys what about ₹650 buys today (₹5,000 ÷ 1.06³⁵, a factor of about 7.7). APY is a useful floor for workers without EPF, but it will not fund retirement on its own. Pair it with other savings where possible; the retirement corpus guide shows how to size the rest.

Changing, missing or stopping contributions

Change the pension amount: you can upgrade or downgrade the chosen pension, generally once a year, with the contribution adjusted.
Missed payments: if a contribution is paid after the due date, overdue interest is charged for the delayed period. Older material quotes slabs of ₹1 to ₹10 a month; check the current rate with your bank or on the NPS Trust APY charges page. Keep enough money in the account on the debit date.
Long default: according to NPS Trust, an APY account is not closed for non-payment. You can regularise it at any time by paying the overdue contributions with overdue interest, but account maintenance charges keep being deducted, and if you stop for good they can run the balance down to zero.
Voluntary exit before 60: allowed, but you generally get back only your contributions and the actual net returns earned on them, not the government's guaranteed benefit.
Death before 60: the spouse can continue the account for the remaining years and receive the same pension, or exit and take the accumulated amount.
Terminal illness: exit before 60 is allowed with refund of contributions and returns.

APY compared with other options for low-income workers

Option	Best for	Main limitation
APY	Guaranteed small pension from 60	Fixed amount; inflation erodes it; joining age only up to 40
NPS All Citizen Model	Flexible contributions, market growth	No guarantee; minimum ₹1,000 a year in Tier I
PPF	Safe long-term savings	No pension; lump sum only
e-Shram-linked schemes	Unorganised workers' registration and other benefits	Check the latest scheme details on official portals

Enrolling

Visit your bank branch or use net banking or the bank's mobile app.
Give your Aadhaar (for KYC), mobile number and nominee details. Add your spouse's details.
Choose the pension amount and payment frequency.
Confirm the auto-debit. You receive an acknowledgement with your PRAN.

Use the retirement readiness checklist to keep nominee and bank details current.

Frequently asked questions

Can I join APY if I am 41?

No. The entry age is 18 to 40, because the scheme needs at least 20 years of contributions.

I started paying income tax after joining APY. What happens?

The income-tax exclusion applies at the time of joining from 1 October 2022. If you joined on or after that date and are later found to have been an income-tax payer on or before the date of application, the account is closed and the accumulated pension wealth till that date is paid to you (notification of 10 August 2022). If you became a taxpayer later, ask your bank how the rules apply.

Is the pension taxable?

Pension is income and taxable under general rules if your total income is above the taxable limit.

Can I have APY and NPS together?

Yes. They are separate accounts with separate PRANs.

Official sources

PFRDA — APY scheme details, contribution chart and FAQs
Department of Financial Services — scheme policy and Cabinet decisions
India Post — APY enrolment at post offices