APY Calculator: Atal Pension Yojana Contribution Chart

What is Atal Pension Yojana: Eligibility, Pension Slabs and How APY Works

The Atal Pension Yojana (APY) is a government-backed pension scheme launched by the Government of India on 9 May 2015 and administered by the Pension Fund Regulatory and Development Authority (PFRDA). Its primary aim is to bring unorganised sector workers, such as domestic help, construction workers, auto drivers and street vendors, under a formal pension net. The Cabinet has approved continuation of APY with funding support till 2030-31. As of December 2025, the scheme has grown to over 8.4 crore subscribers with a total pension corpus of over ₹48,000 crore. Women comprise 55% of new enrolments in FY 2024-25, and 46% of new subscribers are aged 18-25.

Under APY, subscribers contribute a fixed amount every month (or quarter, or half-year) from age 18 to 40, and receive a guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 from age 60 for life. The pension is guaranteed by the Government of India, meaning even if the invested corpus earns below the assumed 8% return, the government makes up the shortfall.

APY Eligibility: Who Can and Cannot Join

Contribution Period and Minimum Tenure

The minimum contribution period under APY is 20 years, which is why the maximum entry age is 40 (since pension starts at 60). Joining at 18 gives you a 42-year contribution window, which dramatically lowers your monthly contribution compared to joining at 40. For example, a ₹5,000 pension requires just ₹210 per month if you join at 18, but ₹1,454 per month if you join at 40 — nearly 7 times more.

APY Auto-Debit, PRAN Number and How to Check Your APY Account

Once you enrol, your bank assigns you a Permanent Retirement Account Number (PRAN), which is your unique APY identifier. Contributions are auto-debited from your linked savings account on a fixed date each month (or quarter or half-year). You must maintain sufficient balance on that date — insufficient balance triggers a penalty of ₹1 per ₹100 of contribution.

You can check your APY account balance and statement through your bank's net banking portal, the NPS Trust website, or by calling the APY toll-free number 1800 110 069. Your annual account statement is sent to your registered mobile number and email each year.

PFRDA Official APY Contribution Chart by Age and Pension Slab

The following contribution amounts are from the official PFRDA APY scheme document. These are the exact monthly amounts your bank will auto-debit from your linked savings account. For quarterly contributions, multiply by 3; for half-yearly, multiply by 6.

The nominee corpus for all slabs is fixed by PFRDA: ₹1.7L for ₹1,000 pension, ₹3.4L for ₹2,000, ₹5.1L for ₹3,000, ₹6.8L for ₹4,000 and ₹8.5L for ₹5,000. This is paid as a lump sum to the nominee after both the subscriber and spouse pass away.

Key insight: If you compare the total investment for a ₹5,000 pension at age 18 (₹210 × 12 × 42 = ₹1,05,840) vs age 40 (₹1,454 × 12 × 20 = ₹3,48,960), joining at 18 costs you ₹2.43 lakhs less to get the exact same lifetime pension. This is the single most powerful argument for joining APY early.

APY Tax Benefits under Section 80CCD for FY 2025-26

Contributions to APY qualify for two separate tax deductions under the Income Tax Act. Understanding both allows you to maximise your tax savings, especially if you also contribute to NPS.

Section 80CCD(1): Basic Contribution Deduction

Your APY contribution is deductible under Section 80CCD(1), which falls within the overall ₹1.5 lakh limit under Section 80C. The deduction is the lower of your actual contribution or 10% of your gross income. For most APY subscribers contributing ₹200–₹1,500 per month, the annual contribution (₹2,400 to ₹18,000) comfortably fits within the ₹1.5 lakh ceiling and is fully deductible. Use our Income Tax Calculator to see the exact saving based on your slab.

Section 80CCD(1B): Extra ₹50,000 Deduction

APY contributions are also eligible for an additional deduction of up to ₹50,000 per year under Section 80CCD(1B). This is over and above the ₹1.5 lakh 80C limit, meaning it can reduce your taxable income by an extra ₹50,000 on top of all other 80C investments. However, practically speaking, most APY contributors are low-income workers whose annual APY contribution is well below ₹50,000, so the effective deduction is limited to their actual contribution amount.

Both deductions are available only under the old tax regime. New regime taxpayers do not get any deduction on APY contributions. If you are considering switching to the new regime, compare both options using our Income Tax Calculator before deciding.

Government Co-Contribution: Is It Still Available?

The government co-contribution is no longer available to new subscribers. It was available only for those who enrolled between June 1, 2015 and March 31, 2016, who were not income tax payers and not covered by any social security scheme. For eligible subscribers, the government contributed 50% of the annual contribution or ₹1,000, whichever was lower, for the first five years. No new subscriber today is eligible for this benefit.

APY vs NPS vs PPF: Which Government Pension Scheme Is Right for You?

Each of these three schemes targets a different type of investor. Here is a clear comparison to help you choose the right one or the right combination.

Which Should You Choose?

If you are a low-income worker in the unorganised sector who is not an income tax payer, APY is the right starting point. It costs very little, the pension is guaranteed by the government, and the nominee corpus provides family protection. For higher income professionals who are income tax payers, NPS offers far more flexibility and a potentially larger retirement corpus since there is no pension cap.

The ideal combination for a young salaried professional in the 5% tax bracket: start APY early for a guaranteed ₹5,000/month base pension, build the bulk of your retirement corpus through SIP in equity mutual funds or PPF, and supplement with SCSS after retirement for regular quarterly income. Use our Retirement Planning Calculator to model your complete retirement corpus.

APY Exit Rules, Nominee Corpus and Premature Withdrawal Guidelines

APY is a long-term commitment and does not allow routine premature withdrawal like an FD or mutual fund. Understanding the exit rules before joining is important.

Normal Exit at Age 60

On reaching 60, the subscriber starts receiving the chosen monthly pension for life. On the death of the subscriber, the spouse receives the same monthly pension for their lifetime. After both the subscriber and the spouse pass away, the nominated beneficiary receives the entire accumulated pension corpus as a lump sum. The nominee corpus amounts range from ₹1.7 lakhs (for ₹1,000 pension slab) to ₹8.5 lakhs (for ₹5,000 pension slab).

Premature Exit Before Age 60

Voluntary exit before 60 is permitted only in exceptional circumstances such as terminal illness or death of the subscriber. On voluntary exit, the subscriber receives the accumulated corpus plus net earned interest (minus administrative charges). The government co-contribution and interest on it are not returned on premature exit. Routine voluntary withdrawal simply to access funds is not allowed under the scheme rules.

Death Before Age 60

If the subscriber dies before 60, the spouse has two options. They can continue contributing to the account until the subscriber would have turned 60, and then receive the pension for life. Alternatively, they can withdraw the entire accumulated corpus at once. This flexibility makes APY a useful family protection tool even for contributors who may not live to see the pension age. For comprehensive retirement income planning, explore our Retirement Withdrawal Calculator.

Penalty for Late Contribution

If your bank account does not have sufficient balance on the auto-debit date, your contribution defaults. APY charges a penalty of ₹1 per month for every ₹100 of contribution. So if your monthly contribution is ₹500 and you miss one month, you pay ₹5 as penalty on top of the next month's contribution. Consecutive defaults for 6 months result in account freezing, and 24 months of default leads to account closure. The penalty amount stays in your corpus and is not deducted from it.

APY Calculator: Frequently Asked Questions