The Atal Pension Yojana (APY), an ambitious initiative by the Union Government launched in 2015 to provide universal social security to India’s unorganised workforce, has seen a significant rise in enrolments. Notably, five states account for nearly half of all subscribers.
As per the latest data presented in the Lok Sabha, Uttar Pradesh tops the list with 16.11 per cent of total enrolments, followed by Bihar (9.59%), Maharashtra (7.96%), West Bengal (7.68%), and Tamil Nadu (6.69%). Collectively, these states contribute nearly 48 per cent of the total enrolments, revealing substantial regional disparities in pension coverage.
The APY currently offers a flexible minimum guaranteed pension ranging from ₹1,000 to ₹5,000 per month, contingent on the subscriber’s contributions. Monthly subscription amounts vary from ₹42 to ₹1,454, influenced by the enrolment age and the chosen pension slab.
Enrolments in the APY have surged dramatically, from 1.54 crore in March 2019 to 7.33 crore by January 2025, reflecting a compound annual growth rate (CAGR) of 29 per cent. The financial year 2024-25 alone witnessed over 89.95 lakh new enrolments, highlighting the growing awareness and reliance on the scheme among India’s informal workforce.
Significantly, the scheme has attracted substantial female participation, with women comprising around 47 per cent of the total subscribers. This underscores the scheme’s effectiveness in promoting financial security among women in the unorganised sector.
Factors Driving State-wise Enrolments
States with larger populations and higher rural demographics, such as Uttar Pradesh, Bihar, and Maharashtra, dominate APY enrolments. Experts attribute this to the extensive presence of informal workers who lack access to formal pension schemes and rely heavily on government-backed social security programs. Additionally, robust government outreach initiatives in these regions have played a crucial role in driving enrolments.
Generally, northern and eastern states show stronger enrolment figures compared to their southern and northeastern counterparts, with exceptions like Tamil Nadu and Karnataka, where enrolments are relatively higher.
Government’s Stance on Pension Benefits
Despite the scheme’s rapid growth, the government has decided against increasing the pension benefits or altering the subscription structure. The Ministry informed the Lok Sabha this week that APY will continue under the existing terms and conditions, with no plans to raise the pension amount or the corresponding subscription rates.
This decision comes amid concerns that increasing the pension would significantly hike subscription costs, placing an additional financial burden on subscribers.
Policy Changes and Future Focus
In a significant policy shift in 2022, the scheme was amended to exclude income taxpayers from eligibility, aiming to better target the economically vulnerable population. As APY continues to expand, the focus remains on deepening its reach among India’s vast unorganised sector, ensuring financial security for millions in their retirement years.
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