How much monthly contribution is needed for ₹5,000 pension at age 30?

At age 30, the monthly contribution for a ₹5,000/month pension is ₹577. This is fixed by PFRDA and does not change with market conditions. You will pay ₹577 every month until age 60 (30 years), for a total contribution of approximately ₹2,07,720. After 60, you receive ₹5,000 per month for life.

What are APY penalty charges for late payment?

APY charges fixed monthly penalties for missed contributions: ₹1/month for contributions up to ₹100, ₹2/month for ₹101–₹500, ₹5/month for ₹501–₹1,000, and ₹10/month for contributions above ₹1,000. These penalties accumulate until all dues are cleared.

What happens if I stop paying APY contributions?

If you miss payments: after 6 months, your account is frozen (no new transactions). After 12 months, it is deactivated. After 24 months, it is closed and the accumulated corpus is returned to you (with interest). You can reactivate a frozen account by paying all missed contributions plus penalties.

What are APY tax benefits?

APY contributions qualify for two tax deductions: Section 80CCD(1) up to ₹1.5 lakh (within the overall 80C basket), and Section 80CCD(1B) up to ₹50,000 exclusively for APY/NPS, over and above the 80C limit. At the 30% tax bracket, the extra ₹50,000 deduction saves ₹15,000 in tax annually.

Can I change my APY pension amount?

Yes, you can upgrade or downgrade your pension choice once per year, effective in April. You must visit your bank branch, fill a modification form, and pay a ₹25 fee. Your new contribution is calculated based on your current age at the time of change.

What is NPS Sanchay and how does it compare to APY?

NPS Sanchay is a simplified NPS variant launched on May 6, 2026. Unlike APY's fixed pension, Sanchay is market-linked with a default allocation. It allows entry up to age 85 (vs APY's 40). Sanchay has no pension cap but no guarantee either. APY is better for those who want certainty; Sanchay is for those comfortable with market risk and want to join later in life.

Can I exit APY before 60?

Normal exit is at 60. Early exit is permitted only in two cases: (1) terminal illness — you receive the accumulated corpus as a lump sum; (2) death — spouse gets pension, nominee gets corpus if both die. Voluntary exit before 60 is not allowed except for these reasons.

How do I open an APY account?

Visit your bank branch or use internet banking. Fill the APY registration form with your Aadhaar, bank account, nominee details, and pension choice. Submit KYC documents and set up auto-debit. PFRDA issues a 12-digit PRAN card within 2–4 weeks. All major banks offer APY enrolment.

What is the APY helpline number?

APY helpline: 1800 110 069 (toll-free, PFRDA). You can also contact NPS Trust at 1800 889 1030 or email apy@pfrda.org.in. For grievances, use the PFRDA grievance portal at cgms.pfrda.org.in.

Government Scheme · India

Atal Pension Yojana (APY) Calculator & Guide 2026

Q: What is Atal Pension Yojana (APY)?

Atal Pension Yojana (APY) is a government-backed pension scheme for unorganised sector workers in India, launched in May 2015. It guarantees a fixed monthly pension of ₹1,000 to ₹5,000 from age 60, in exchange for monthly contributions during your working years (ages 18–40). It is regulated by PFRDA and replaced the earlier Swavalamban scheme.

Q: Who is eligible for APY?

Any Indian citizen aged 18–40 with a bank account can join APY. However, from October 2022, income-tax payers are excluded. You must also not already be a member of any statutory social security scheme (like EPF, NPS government employee model, or ESIC) unless you are joining voluntarily without government co-contribution.

Q: What pension amounts does APY offer?

APY offers five fixed monthly pension levels: ₹1,000, ₹2,000, ₹3,000, ₹4,000, and ₹5,000. You choose one at enrolment. You can change your pension choice once per year in April by paying a ₹25 fee. The pension is guaranteed by the government and paid for life.

Q: What happens to APY on subscriber death before 60?

If the subscriber dies before 60, the spouse receives the same monthly pension for life. If both subscriber and spouse die, the nominee receives the accumulated corpus (total contributions plus investment returns) as a lump sum. This is a key advantage over many private pension products.

Guaranteed pension for India's unorganised sector. Enter your age, pick your pension (₹1,000–₹5,000/month), and see exactly how much to contribute — with the full official PFRDA chart, tax benefits, penalties, and how APY compares to NPS and the new NPS Sanchay (May 2026).

5.25 Cr+ Subscribers (Oct 2025)

₹1K–₹5K Monthly pension guaranteed

18–40 Age to join

₹50K Extra 80CCD(1B) deduction

May 2015 Launched (replaced Swavalamban)

Calculator

APY contribution lookup

Select your age and desired pension. The contribution is fixed by PFRDA — there is no market risk. You pay the same amount every month until age 60.

Your current age

years

Desired monthly pension after 60

Monthly contribution

₹577

Quarterly contribution

₹1,705

Half-yearly contribution

₹3,358

Years to pay

30 years

Total you contribute

₹2,07,720

Corpus to nominee*

₹3,11,580

*Corpus to nominee: if both subscriber and spouse die, the nominee receives the accumulated corpus (contributions + investment returns) minus pension already paid. This is an approximate figure based on PFRDA's indicative returns.

Full APY contribution chart (monthly)

Age	₹1,000	₹2,000	₹3,000	₹4,000	₹5,000
18	₹42	₹84	₹126	₹168	₹210
19	₹46	₹92	₹138	₹183	₹228
20	₹50	₹100	₹150	₹198	₹248
21	₹54	₹108	₹162	₹215	₹269
22	₹59	₹117	₹177	₹234	₹292
23	₹64	₹127	₹192	₹254	₹318
24	₹70	₹139	₹208	₹277	₹346
25	₹76	₹151	₹226	₹301	₹376
26	₹82	₹164	₹246	₹327	₹409
27	₹90	₹178	₹268	₹356	₹446
28	₹97	₹194	₹292	₹388	₹485
29	₹106	₹212	₹318	₹423	₹529
30	₹116	₹231	₹347	₹462	₹577
31	₹126	₹252	₹379	₹504	₹630
32	₹138	₹276	₹414	₹551	₹689
33	₹151	₹302	₹453	₹602	₹752
34	₹165	₹330	₹495	₹659	₹824
35	₹181	₹362	₹543	₹722	₹902
36	₹198	₹396	₹594	₹792	₹990
37	₹218	₹436	₹654	₹870	₹1087
38	₹240	₹480	₹720	₹957	₹1196
39	₹264	₹528	₹792	₹1054	₹1318

Source: jansuraksha.gov.in (PFRDA APY contribution chart, 2026)

Reverse: "I can afford ₹___/month"

Monthly budget

₹

Age 28 → ₹5,000/mo pension (₹485/mo)

Age 31 → ₹4,000/mo pension (₹504/mo)

Age 34 → ₹3,000/mo pension (₹495/mo)

How APY works

APY is a defined-benefit pension scheme. Unlike NPS, where your final pension depends on market returns, APY promises a fixed monthly amount — guaranteed by the government — in exchange for fixed contributions during your working years.

You contribute (ages 18–60)

₹42 – ₹1,318/month

→ PFRDA-managed pension fund

Fixed amount based on age + pension choice. No changes for 20–42 years.

Government guarantees

₹1,000 – ₹5,000/month

→ Monthly pension from age 60

For life. Spouse continues after subscriber's death.

The earlier you join, the less you pay. At 18, a ₹5,000 pension costs only ₹210/month. At 39, the same pension costs ₹1,318/month. The difference is ₹1,108/month × 21 years = ₹2.78 lakh extra for joining just one year before the cutoff.

Who can join — and who is excluded

APY is designed for unorganised sector workers. Three conditions must be met. The income-tax payer exclusion (October 2022) is the most commonly missed rule.

APY eligibility checklist

✓ Indian citizen
✓ Age 18–40 years
✓ Has a bank account with active debit card / net banking
✗ Must NOT be an income-tax payer (from Oct 2022)
✗ Must NOT already be a member of EPF, NPS (govt), or ESIC (for co-contribution)

Income-tax payers are excluded From October 2022, any person who is an income-tax payer (files ITR or has TDS above the basic exemption limit) cannot join APY. If you joined before this rule and later became a tax payer, you may continue but will not receive government co-contribution. This is the #1 reason for APY rejection at banks.

Eligible

Auto-rickshaw driver, age 28, no ITR

Domestic worker, age 35, bank account only

Small shop owner, age 22, income below taxable limit

Farmer's child working in city, age 25, no EPF

Not eligible

Software engineer, age 30, salary ₹8 LPA (ITR filed)

Government teacher with NPS, age 35

Private sector employee with EPF, age 28 (for co-contribution)

NRI without Indian bank account

How to open an APY account

APY is available at all major banks. You can apply in person or through internet banking. Auto-debit setup is strongly recommended to avoid penalties.

Visit your bank branch or internet banking

All major banks (SBI, HDFC, ICICI, Axis, PNB, BoB) offer APY. Look for "Government Schemes" or "Social Security" in your net banking menu.

Fill the APY registration form

Provide name, Aadhaar, bank account details, nominee name + relationship, and select your pension (₹1K/₹2K/₹3K/₹4K/₹5K).

Submit KYC documents

Aadhaar card + cancelled cheque or bank passbook copy. Some banks allow paperless e-KYC via Aadhaar OTP.

Set up auto-debit

Sign an auto-debit mandate. Your contribution is deducted automatically every month. This prevents missed payments and late fees.

Receive your PRAN card

PFRDA issues a 12-digit PRAN (Permanent Retirement Account Number). Physical card arrives by post in 2–4 weeks. You can also download e-PRAN.

Tax benefits

APY contributions qualify for the same tax deductions as NPS. The extra ₹50,000 under 80CCD(1B) is the most valuable benefit — it is over and above the ₹1.5 lakh 80C limit.

Section	Limit	Within 80C?	Tax saved (30% slab)
80CCD(1)	Up to ₹1.5 lakh	Yes (shared with 80C)	₹45,000 max
80CCD(1B)	Up to ₹50,000	No — extra!	₹15,000
80CCD(2)	Employer contribution up to 14%	No cap (for govt employees)	Varies by salary

The 80CCD(1B) edge If you are in the 30% tax bracket, contributing ₹50,000 to APY saves you ₹15,000 in tax every year — over and above your 80C investments (PPF, ELSS, LIC, etc.). This is the primary financial reason to open APY even if you have other retirement savings.

Penalties & defaults

Missing a payment triggers late fees. Continued default leads to account freeze, deactivation, and eventual closure. The penalty is small but compounds.

Monthly contribution	Late fee / month	Example
Up to ₹100	₹1	Age 18, ₹1,000 pension
₹101 – ₹500	₹2	Age 25, ₹2,000 pension
₹501 – ₹1,000	₹5	Age 30, ₹3,000 pension
Above ₹1,000	₹10	Age 35, ₹5,000 pension

Default timeline

1 missed payment

Late fee added to next auto-debit

6 months missed

Account frozen — no new contributions accepted until dues cleared

12 months missed

Account deactivated — pension entitlement suspended

24 months missed

Account closed — accumulated corpus returned to subscriber

Reactivation costs To reactivate a frozen account, pay all missed contributions + accumulated penalties + a ₹100 reactivation fee. Example: 3 months missed at ₹577/month = ₹1,731 contributions + ₹30 penalties + ₹100 fee = ₹1,861 total.

Withdrawal & exit rules

APY is designed to be a lifelong pension. Early exit is restricted. Understand the three exit scenarios before you enrol.

At age 60 (normal exit)

Subscriber turns 60

Receives fixed monthly pension for life (₹1K–₹5K as chosen)

Subscriber dies after 60

Spouse receives same pension for life

Both subscriber + spouse die

Nominee receives accumulated corpus as lump sum

Before 60 (early exit)

Terminal illness

Subscriber receives accumulated corpus as lump sum. Account closed.

Death before 60

Spouse gets same pension for life. If no spouse / spouse dies, nominee gets corpus.

Voluntary exit

Not permitted. You cannot withdraw voluntarily before 60 except for terminal illness or death.

Worked example: death cascade

Ramesh joins APY at 30 for ₹5,000 pension. Contributes ₹577/month for 20 years, then dies at 50. Total contributed: ₹577 × 12 × 20 = ₹1,38,480.

Outcome: His wife Sunita receives ₹5,000/month for life from age 50. If Sunita dies at 70, their nominee (son) receives the accumulated corpus (approximately ₹2.5–3 lakh after accounting for pension already paid) as a lump sum.

APY vs NPS vs NPS Sanchay

Three pension products, three risk profiles. Choose based on your age, income stability, and risk tolerance.

Feature	APY	NPS Tier I	NPS Sanchay
Pension type	Fixed, guaranteed	Market-linked	Market-linked
Age to join	18–40	18–70	18–85
Investment choice	None (govt managed)	Auto or Active (E/C/G)	Default allocation only
Max pension	₹5,000/month	No cap (depends on corpus)	No cap (depends on corpus)
Contribution cap	₹1,318/month max	No cap	No cap
Tax benefit	80CCD(1) + 80CCD(1B)	80CCD(1) + 80CCD(1B) + 80CCD(2)	Same as NPS Tier I
Risk	Zero (govt guaranteed)	Market risk	Market risk
Best for	Informal workers, certainty seekers	Salaried, long-term investors	Late joiners, first-time investors

Not sure which pension product fits you?

Use our NPS calculator to project your market-linked corpus, or read the complete NPS guide for fund manager selection, D-Remit setup, and all 7 NPS variants.

NPS Calculator → NPS Complete Guide →

Frequently asked questions

Quick answers to the most common APY questions. For detailed rules, refer to jansuraksha.gov.in.

What is Atal Pension Yojana (APY)?

APY is a government-backed pension scheme for unorganised sector workers, launched in May 2015. It guarantees a fixed monthly pension of ₹1,000 to ₹5,000 from age 60 in exchange for monthly contributions during ages 18–40. It replaced the earlier Swavalamban scheme and is regulated by PFRDA.

Who is eligible for APY?

Any Indian citizen aged 18–40 with a bank account. From October 2022, income-tax payers are excluded. You must also not be a member of EPF, NPS (government model), or ESIC if seeking government co-contribution.

Can income tax payers join APY?

No. From October 2022, income-tax payers are explicitly excluded. If you joined before this rule and later started paying tax, you may continue but will not receive government co-contribution.

What pension amounts does APY offer?

Five fixed levels: ₹1,000, ₹2,000, ₹3,000, ₹4,000, and ₹5,000 per month. You choose at enrolment and can change once per year in April (₹25 fee).

How much monthly contribution for ₹5,000 pension at age 30?

₹577/month. Fixed by PFRDA. Over 30 years, you contribute ₹2,07,720 and receive ₹5,000/month for life from age 60.

What are APY penalty charges?

₹1/month (up to ₹100 contribution), ₹2/month (₹101–₹500), ₹5/month (₹501–₹1,000), ₹10/month (above ₹1,000). Accumulates until cleared.

What happens if I stop paying?

6 months = frozen; 12 months = deactivated; 24 months = closed with corpus returned. Reactivate by paying missed contributions + penalties + ₹100 fee.

What happens on death before 60?

Spouse receives the same pension for life. If both die, nominee gets the accumulated corpus (contributions + returns) as a lump sum.

What are the tax benefits?

80CCD(1) up to ₹1.5 lakh (within 80C) and 80CCD(1B) up to ₹50,000 exclusively for APY/NPS, over and above 80C. At 30% bracket, the extra ₹50,000 saves ₹15,000 tax annually.

Can I change my pension amount?

Yes, once per year in April. Visit your bank, fill a modification form, pay ₹25 fee. New contribution is based on your current age.

How is APY different from NPS?

APY = fixed guaranteed pension, no market risk, ages 18–40, capped at ₹5K. NPS = market-linked, no cap, ages 18–70, 40% mandatory annuity.

What is NPS Sanchay and how does it compare?

NPS Sanchay launched May 6, 2026. Simplified NPS with default allocation, ages 18–85, no pension cap but no guarantee. APY is better for certainty; Sanchay for late joiners comfortable with market risk.

Can I exit before 60?

Only for terminal illness (corpus returned) or death (spouse pension / nominee corpus). Voluntary exit before 60 is not permitted.

How do I open an account?

Visit your bank branch or use internet banking. Fill APY form with Aadhaar, bank details, nominee, and pension choice. Set up auto-debit. PRAN card arrives in 2–4 weeks.

What is the APY helpline?

1800 110 069 (PFRDA, toll-free). NPS Trust: 1800 889 1030. Email: [email protected]. Grievances: cgms.pfrda.org.in

Quick reference

Helpline

1800 110 069

PFRDA (toll-free)

NPS Trust

1800 889 1030

Account queries

Website

jansuraksha.gov.in

Official PFRDA portal

Grievance portal

cgms.pfrda.org.in

Online complaint filing

Min age to join

18 years

Must have bank account

Max age to join

40 years

Exit at 60, so min 20 years of contribution

Min pension

₹1,000/month

Guaranteed for life

Max pension

₹5,000/month

Highest contribution: ₹1,318/mo at age 39

Tax deduction (extra)

₹50,000

80CCD(1B), over and above 80C

Change pension choice

Once/year in April

₹25 modification fee

Related calculators & guides

Last updated 27 May 2026 · site changelog