The Union Cabinet on Wednesday approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030-31, extending government support for promotional, developmental and gap funding activities aimed at strengthening old-age income security for unorganised sector workers.
The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, ensures sustained financial and institutional backing for the pension scheme, which is a key component of India’s social security framework. According to a statement issued by the Finance Ministry, the approval includes continued funding for awareness generation, capacity building and outreach initiatives, along with gap funding to meet the scheme’s long-term viability requirements.
The Atal Pension Yojana provides a guaranteed minimum monthly pension ranging from â‚ą1,000 to â‚ą5,000 to subscribers after the age of 60, depending on their contribution levels. Launched on May 9, 2015, the scheme is designed primarily for workers in the unorganised sector, many of whom lack access to formal retirement benefits.
The Finance Ministry stated that the continuation of APY supports India’s broader objective of expanding financial inclusion and transitioning towards a pensioned society. It added that sustained government involvement is critical to maintaining enrolment momentum and ensuring the scheme remains financially sustainable over the coming years.
As of January 19, 2026, the APY has enrolled over 8.66 crore subscribers, reflecting its growing acceptance among low-income earners and informal workers across the country. Officials described the scheme as a cornerstone of India’s inclusive social security system, particularly for individuals without access to employer-sponsored pensions.
Data released under the scheme shows that public sector banks account for the majority of enrolments, contributing 70.44 per cent of total subscriptions. Regional rural banks follow with 19.80 per cent, while private sector banks account for 6.18 per cent. Smaller shares come from payment banks at 0.37 per cent, small finance banks at 0.62 per cent, and cooperative banks at 2.39 per cent.
The government noted that the APY recorded a 24 per cent growth in gross enrolments by the end of the 2023–24 financial year, indicating rising awareness and participation among eligible populations. Continued funding support is expected to further boost enrolment, particularly in rural and semi-urban areas.
The Finance Ministry emphasised that promotional and developmental funding would be used to enhance outreach among unorganised workers through awareness campaigns and institutional capacity building. Gap funding, it added, would help bridge financial shortfalls and ensure the scheme’s long-term sustainability.
The extension of the Atal Pension Yojana aligns with the government’s broader vision of strengthening social security systems and advancing the goals of Viksit Bharat @2047 by providing reliable and sustainable income support to vulnerable sections of the population in old age.
