Increase in Atal Pension Yojana payout? PFRDA chairman says evaluation on — Here's all you need to know

The Pension Fund Regulatory and Development Authority (PFRDA) is considering demands that the body's Atal Pension Yojana (APY) increase the upper limit of its monthly pension payout, according to a PTI report. The monthly pension payout amount limit at present is ₹5,000/month.

“It will take time because these are long-term schemes, and long-term liabilities of the government are intertwined,” he said at the APY annual felicitation programme in New Delhi on 20 May.

Increased pension payout? What PFRDA is doing…

• The authority is “continuing to evaluate and work on the demand”, Ramann said as per the report.
• The PFRDA will engage with the Department of Financial Services (DFS) on the matter and provide a detailed report, he stated.

• He added that the scheme has a government component, so many things have to be looked at. “It is too premature to arrive at any conclusion at this stage,” according to the executive.

What is the Atal Pension Yojana?

• Launched in 2015, Atal Pension Yojana is a government initiative that aims to create a universal social security system for all Indians, including the poor, underprivileged, and unorganised sector workers.
• APY is administered by the PFRDA under the overall administrative and institutional architecture of the National Pension System (NPS).
• Open to all Aadhaar-linked bank holders between 18-40 years of age and not paying income tax, the scheme provides financial security and covers future exigencies for Indians in the unorganised sector.
• Notably, the contributions differ, based on pension amount chosen and subscribers receive a guaranteed minimum monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after the age of 60 years, based on the contributions made by the subscriber after joining the scheme.

• You should make contributions for a minimum of 20 years to receive the benefit.
• The monthly pension is available to the subscriber, next to their spouse, and in case of death the accumulated pension corpus will be returned to the nominee at the subscriber's age 60.
• The scheme provides tax exemption on contributions made by individuals under Section 80CCD of the Income Tax Act, 1961 for up to ₹1,50,000.
• Additional exemption of ₹50,000 for contributions to the APY can be claimed under Section 80CCD(1B).

APY subscribers count expected to cross 10 crores

Meanwhile, Ramann at the event also announced that APY's subscribers count is expected to cross the 10-crore mark this financial year.

• At end of FY26, the base had increased to 8.96 crore up from 7.61 crore in the previous financial year, adding a record 1.35 crore subscribers to the scheme. “With the annual growth of 18%, we hope to cross 10 crore subscribers base in FY27,” Ramann said.
• He also highlighted the significant rise in enrolments among the 18–25 age group, reflecting increasing awareness among youth regarding long-term financial security, and emphasised the need to further strengthen subscriber engagement and pension awareness across the country.

According to PFRDA data, NPS subscribers, on the other hand, are expected to rise over 22% this year. Total NPS subscribers at FY26 end was 2.17 crore, with a total corpus of ₹15.95 lakh crore.

(With inputs from PTI)

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