About
- Launched: 1 June 2015 by the Government of India to create a universal social-security system, especially for the poor, underprivileged and workers in the unorganised sector.
- Nodal/Regulatory Body: Pension Fund Regulatory and Development Authority (PFRDA).
- Ministry: Ministry of Finance.
- Nature: Voluntary, contribution-based pension scheme.
- Eligibility: Indian citizens aged 18–40 years having a savings bank/post-office savings account.
- Important exclusion: From 1 October 2022, a person who is or has been an income-tax payer cannot open a new APY account. Existing subscribers who subsequently become income-tax payers can continue their APY account.
Key Features
Guaranteed Pension: After attaining 60 years, the subscriber receives a government-guaranteed minimum monthly pension of ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000.
The pension amount depends on the subscriber’s age at joining and the contribution selected.
Contribution
- Contributions are determined based on the subscriber’s age at joining and the chosen pension amount.
- Contributions can be made monthly, quarterly or half-yearly.
- An individual can have only one APY account.
Administration
APY operates under the institutional architecture of the National Pension System (NPS) and is administered by PFRDA through banks and the Department of Posts.
Important Amendments
- 2016: Spouse was given the option to continue contributing to the APY account if the subscriber dies before attaining 60 years of age.
- 2017: Aadhaar was enabled for APY enrolment, facilitating identification and account-related processes.
- 2022: Income-tax payers were excluded from opening new APY accounts with effect from 1 October 2022.
- 2025: PFRDA issued an APY notification on 18 August 2025, updating the regulatory framework for the scheme.
