Atal Pension Yojana (APY) 2026
A guaranteed monthly pension of ₹1,000–₹5,000 for unorganised-sector workers.
Rates for July–September 2026 (Q2 FY 2026-27) · Updated 27 September 2026What is Atal Pension Yojana (APY)?
Atal Pension Yojana is a Government of India pension scheme administered by PFRDA, launched in 2015 and extended up to 2030-31. Subscribers aged 18–40 contribute monthly, quarterly or half-yearly until 60 and then receive a guaranteed pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 per month. From 1 October 2022, income-tax payers cannot join.
APY at a glance
| Particular | Details |
|---|---|
| Entry age | 18–40 years |
| Pension options | ₹1,000 / 2,000 / 3,000 / 4,000 / 5,000 per month |
| Contribution till | 60 years (minimum 20 years) |
| Pension start | Age 60 |
| Spouse pension | Same pension to spouse after subscriber’s death |
| Nominee corpus | ₹1.7 lakh – ₹8.5 lakh returned to nominee |
| Exclusion | Income-tax payers (from 1 Oct 2022) |
| Auto-debit | From savings bank account |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of APY
Government guarantees the chosen pension amount.
Pension continues to spouse; corpus to nominee.
Starting ₹42/month.
Change pension slab once a year (April).
Eligibility — who can invest?
- Indian citizen aged 18–40
- Savings bank / post-office account holder
- Not an income-tax payer
- One APY account per person
How does APY work?
- Enrol through your bank (net banking / branch).
- Choose pension amount; contribution is auto-debited.
- Delay attracts penalty ₹1–₹10 per month depending on contribution.
- At 60, pension starts.
APY contribution chart (monthly)
| Entry age | ₹1,000 | ₹2,000 | ₹3,000 | ₹4,000 | ₹5,000 |
|---|---|---|---|---|---|
| 18 yrs | ₹42 | ₹84 | ₹126 | ₹168 | ₹210 |
| 20 yrs | ₹50 | ₹100 | ₹150 | ₹198 | ₹248 |
| 25 yrs | ₹76 | ₹151 | ₹226 | ₹301 | ₹376 |
| 30 yrs | ₹116 | ₹231 | ₹347 | ₹462 | ₹577 |
| 35 yrs | ₹181 | ₹362 | ₹543 | ₹722 | ₹902 |
| 40 yrs | ₹291 | ₹582 | ₹873 | ₹1164 | ₹1,454 |
Tax benefits of APY
| Stage | Tax treatment |
|---|---|
| Contribution | Deduction under 80CCD(1) within ₹1.5 lakh + 80CCD(1B) (old regime) |
| Pension | Taxable |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Voluntary exit before 60 | Only contributions + net actual accumulated earnings returned (minus charges) |
| Death before 60 | Spouse can continue or claim corpus |
| Terminal illness | Exit allowed |
At maturity
| Option | What happens |
|---|---|
| At 60 | Pension for life; spouse after death; corpus to nominee |
APY returns — worked examples
| Joining age | ₹1,000 pension | ₹3,000 pension | ₹5,000 pension |
|---|---|---|---|
| 18 | ₹42/month | ₹126/month | ₹210/month |
| 25 | ₹76 | ₹226 | ₹376 |
| 30 | ₹116 | ₹347 | ₹577 |
| 35 | ₹181 | ₹543 | ₹902 |
| 40 | ₹291 | ₹873 | ₹1,454 |
Monthly contribution from the official APY chart. Corpus to nominee: ₹1.7 lakh (₹1,000) to ₹8.5 lakh (₹5,000).
APY calculator
How to open / invest in APY
- Log in to net banking → APY.
- Select pension and nominee.
- Confirm auto-debit.
Documents required
- Aadhaar
- Savings account
- Mobile number
Important forms
| Form | Purpose |
|---|---|
| APY registration form | Enrolment |
| Voluntary exit form | Exit |
Advantages & limitations
- Guaranteed pension
- Very low contribution
- Spouse continuity
- Pension capped at ₹5,000 (inflation erodes value)
- Tax payers excluded
- Long commitment
Mistakes to avoid
- Low balance causing missed auto-debit and penalty
- Joining late at 39–40 and paying high contribution
APY vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| APY | Guaranteed pension | Till 60 | ₹42/month (age 18, ₹1,000 pension) | Contribution under 80CCD(1) |
| NPS | Market-linked | Till 60 (can stay invested up to 85) | ₹1,000 per year (Tier I) | EET — partly tax-free at exit |
| PMJDY | Savings-bank rate of the bank | No fixed tenure | Zero balance | As savings-account interest |
| POSA | 4.0% p.a. | No fixed tenure | ₹500 opening & minimum balance | Interest exempt up to ₹3,500 (₹7,000 joint) |
| EPF | 8.25% p.a. (FY 2025-26) | Till retirement (58) | 12% of basic + DA | EEE (conditions apply) |
Frequently asked questions
Who cannot join APY?
Income-tax payers from 1 October 2022.
Can I change pension amount?
Yes, once a year.
What happens after death?
Spouse gets the same pension; after both, nominee gets the corpus.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.