Atal Pension Yojana (APY): Pension Slabs, Eligibility & Apply 2026

Atal Pension Yojana (APY) promises a guaranteed pension of ₹1,000 to ₹5,000 per month from age 60 for workers, especially in the unorganised sector, backed by the government. You can join between 18 and 40, pay by auto-debit from your savings account, and your spouse and nominee stay protected after you. Since 1 October 2022, income-tax payers cannot open new APY accounts – this guide covers the slabs, contributions, family benefits and the exact enrollment process.

Who can open an APY account

• You must be a citizen of India aged between 18 and 40 years.
• You need a savings bank account with a working auto-debit facility.
• You must not be an income-tax payer – the bar on fresh enrollment applies from 1 October 2022.
• The account is opened in your own name, one APY account per person.

The income-tax bar means a new subscriber must not be paying income tax at the time of joining; it was introduced to keep the scheme focused on the unorganised sector. If you already run an APY account, its terms continue as before. Non-taxpayers in any occupation – domestic workers, drivers, shop assistants, small vendors – are the core target group.

Pension slabs and monthly contributions

APY offers five pension slabs: ₹1,000, ₹2,000, ₹3,000, ₹4,000 and ₹5,000 per month, all starting at age 60. Your contribution depends on two things – the slab you choose and your age at entry, so the earlier you start, the smaller the monthly outgo for the same pension. The indicative figures below follow the standard APY charts; confirm the exact amount with your bank before signing the mandate.

Contributions continue until you turn 60, debited monthly, quarterly or half-yearly as you choose. Keep the account funded, because missed debits attract late fees and a long default can freeze and eventually close the account. The pension arrives in the subscriber’s bank account every month after 60.

What your family receives

The protection is layered. After the subscriber’s death, the spouse receives the same pension for life at the same slab. When both have passed away, the nominee receives the accumulated corpus – roughly ₹1.7 lakh to ₹8.5 lakh depending on the slab. If the subscriber dies before 60, the spouse can take over the account and continue the contributions, or opt out with the corpus built until then.

Leaving APY before 60

Voluntary exit before 60 returns only your own contributions plus the net actual returns earned on them. The government’s benefit component and its accrued income are not paid out, and the guaranteed-pension promise ends with the exit. Because the math works against early exit, treat APY as a till-60 commitment and choose the slab conservatively at entry.

How to enroll

• Visit a bank or post office branch and submit the APY form with your passbook details.
• Or enroll through your bank’s net banking or mobile banking under the APY or e-APY enrollment section.
• Or apply through a Common Service Centre with Aadhaar-based assistance.
• Choose the pension slab, confirm the auto-debit mandate and collect the PRAN issued for your account.

The PRAN (permanent retirement account number) identifies your APY account across the system, and the first debit usually happens in the following month. Review the deduction on your statement each cycle so a funding shortfall never surprises you.

Key takeaways

• APY guarantees ₹1,000-₹5,000 per month from 60 across five slabs, with entry between 18 and 40.
• Income-tax payers cannot newly enroll since 1 October 2022; existing accounts continue as before.
• The spouse gets the same pension for life, and the nominee receives a corpus of about ₹1.7-8.5 lakh.
• Voluntary exit returns only your own contributions plus actual returns, without the government benefit.

Frequently asked questions

Can an income-tax payer join APY now?

No. Fresh enrollment by income-tax payers is barred from 1 October 2022. Existing subscribers continue on their original terms.

How much pension will I actually get?

Exactly the slab you choose – ₹1,000 to ₹5,000 per month from age 60, for life. The guarantee is statutory under the scheme design.

What happens to my APY account if I die?

After 60, the spouse receives the same pension for life, and the nominee then receives the corpus. Before 60, the spouse can continue the account or exit with the corpus built so far.

Can I exit APY before 60?

Yes, voluntarily. You receive your own contributions plus net actual returns, without the government benefit component.

Where do I apply for APY?

At any bank or post office branch, through bank net banking or mobile banking, or at a Common Service Centre. Carry Aadhaar and your passbook, and keep the auto-debit mandate funded.

Is APY the same as NPS?

No. APY is a guaranteed defined-benefit pension for non-taxpayers, while NPS is market-linked; our comparison guide explains the differences in detail.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.