Atal Pension Yojana (APY) is a government-sponsored pension scheme for the unorganized sector. It was launched in 2015 to provide a guaranteed pension to people in the unorganized sector, such as farmers, construction workers, and domestic workers.
Eligibility
To be eligible for APY, you must be between the ages of 18 and 40 years and must have a savings bank account in any bank or post office in India. You must also not be covered by any other government pension scheme.
Contribution
The contribution to APY depends on your age and the desired pension amount. The minimum contribution is Rs. 42 per month and the maximum contribution is Rs. 1450 per month. The table below shows the different contribution amounts and the corresponding pension amounts:
| Age | Contribution (Rs. per month) | Pension amount (Rs. per month) |
|---|---|---|
| 18-23 | 42 | 1000 |
| 24-29 | 55 | 2000 |
| 30-35 | 70 | 3000 |
| 36-40 | 88 | 4000 |
| 41-45 | 113 | 5000 |
Benefits
The benefits of APY include:
- Guaranteed pension: APY provides a guaranteed pension to subscribers from the age of 60 years. The pension amount is based on the subscriber’s age and contribution amount.
- Tax benefits: The contributions to APY are eligible for tax deduction under Section 80CCD of the Income Tax Act. The maximum deduction is Rs. 1.5 lakhs per annum.
- Government subsidy: The government provides a subsidy of 50% of the contribution amount to subscribers of APY who are below the age of 40 years and belong to the economically weaker section (EWS) or below poverty line (BPL) categories.
How to apply
To apply for APY, you can visit any bank or post office branch. You will need to fill out an application form and provide your KYC documents. You will also need to open a savings bank account in the bank or post office where you are applying for APY.
APY calculator
You can use an APY calculator to calculate your monthly contribution and pension amount. The APY calculator is available on the website of the Pension Fund Regulatory and Development Authority of India (PFRDA).
APY for women
The government has launched a special scheme for women under APY called the Swavalamban Yojana. Under this scheme, women subscribers of APY can get a pension of Rs. 5000 per month at the age of 60 years, even if they contribute only Rs. 60 per month.
APY for the differently-abled
The government has also launched a special scheme for differently-abled people under APY called the Sarva Shiksha Abhiyan (SSA) Yojana. Under this scheme, differently-abled subscribers of APY can get a pension of Rs. 5000 per month at the age of 60 years, even if they contribute only Rs. 40 per month.
APY for the unorganized sector workers
The government has launched a special scheme for unorganized sector workers under APY called the Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) Yojana. Under this scheme, unorganized sector workers can get a pension of Rs. 3000 per month at the age of 60 years, even if they contribute only Rs. 55 per month.
Conclusion
APY is a good pension scheme for people in the unorganized sector. It provides a guaranteed pension from the age of 60 years and is eligible for tax benefits. The government also provides a subsidy to subscribers of APY who are below the age of 40 years and belong to the EWS or BPL categories.
Here are some additional benefits of APY:
- APY is a portable scheme, which means that you can continue to contribute to APY even if you change jobs or shift to a different city.
- APY is a low-cost scheme, with the minimum contribution being just Rs. 42 per month.
- APY is a simple scheme, with easy-to-understand rules and regulations.
- APY is a safe scheme, with the contributions being invested in government securities.
If you are working in the unorganized sector and do not have any other pension scheme, then you should consider joining APY. It is a good way to save for your