Atal Pension Yojana benefit may increase up to Rs 10,000 per month; all you need to know

In order to extend pension benefits to the working poor from the unorganised sector, the government has been running the Atal Pension Yojana (APY) since May 2015. According to official data, the scheme has gathered 1.08 crore subscribers and Rs 4,500 crore in contribution from beneficiaries by far. The pension scheme for the unorganised sector workers offers monthly pension in slabs between Rs 1,000 and Rs 5,000. Government is reportedly planning to include three more monthly pension slabs up to Rs 10,000.

Here are the things one should keep in mind before opting for the APY scheme:

1. Eligibility

The Atal Pension Yojana allows Indian citizens between 18 years and 40 years of age to opt for fixed pension slabs of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000. An applicant gets to choose the preferred slab at the time of subcription. The earlier a beneficiary joins the scheme, the less he or she has to pay as contribution. The applicant also needs to have a savings account to avail the benefits of the scheme. This savings account can either be held with a bank or a post office.

2. Contribution period

The minimum age of opting for Atal Pension Yojana is 18 years and the maximum age is 40 years. The age of exit and start of pension is 60 years. This means that the minimum period of contribution for a beneficiary of the scheme is 20 years, and the maximum is 42 years. Exit and payment of pension is not allowed, except in situations like death of the beneficiary or terminal disease.

3. Contribution amount

The contribution amount paid by an applicant depends on the age he joins the scheme at, the pension slab he opts for from Rs 1,000 to Rs 5,000, and the time between payments - monthly, quarterly, or half-yearly. As of now, an 18-year old applicant has to pay between Rs 42 and Rs 210 per month depending on the chosen pension slabs. Whereas, a 39-year old applicant will have to pay from Rs 264 to Rs 1318 every month, depending on the pension slab.

Image: Atal Pension Yojana website