Budget 2025: Central Government To Double Minimum Pension Under Atal Pension Yojana, Says Report

The central government is expected to double the minimum guaranteed pension under the Atal Pension Yojana (APY) to Rs 10,000, as per a report by Moneycontrol. The report suggested the proposal at the moment is in its final stages of approval, the policy change is anticipated to be announced in the upcoming Union Budget 2025 on February 1.

“The proposal to double the minimum guaranteed amount to Rs 10,000 is in the final stages. It’s almost agreed upon. It is likely to be announced in the Budget,” Moneycontrol quoted the government official as saying.

The anticipated increase in the Atal Pension Yojana scheme is expected to offer financial stability and security to India’s vulnerable sections, as per the report.

What is Atal Pension Yojana?

Atal Pension Yojana was launched on May 9, 2015, by Prime Minister Narendra Modi. The APY is a monumental social security scheme created in an effort to give senior citizens, poor underprivileged, unorganised sector labourers with income security. The APY scheme is named after former Prime Minister Atal Bihari Vajpayee. The goal of this scheme was to give formal retirement benefits.

What is the current scenario?

The APY scheme offers a monthly pension between the range of Rs 1000 and Rs 5000 after an individual who is registered under the policy hits the age of 60. The sum varies based on individuals’ contributions.

Till October 2024, APY had reported over 7 crore total enrolments, including over 56 lakh new subscribers during the financial year 2024-25. The Pension Fund Regulatory and Development Authority (PFRDA) has played a pivotal role in pushing the scheme through various initiatives, including outreach programmes at the state and district levels.

It also devised awareness as well as training programmes which were published in Hindi, English and 21 other regional languages.As of now, the scheme allows subscribers to contribute moderate amounts. The minimum investment amount required per month is Rs 42 for an 18-year-old going for a Rs 1000 monthly pension. The maximum cap on contribution is Rs 1,454 per month for a 40-year-old individual expecting a Rs 5000 monthly pay in pension.