A Major Gift from the Modi Government! Under This Scheme, You Could Now Receive ₹10,000 Per Month Instead of ₹5,000

Atal Pension Yojana: The government is considering raising the maximum pension limit under the Atal Pension Yojana from ₹5,000 to ₹10,000 per month, aiming to provide better support to workers in the unorganized sector amidst rising inflation.

Atal Pension Yojana: The Government of India is preparing to expand the scope of social security coverage for workers in the unorganized sector. In light of rising inflation—and the increasing expenses faced after retirement—the government is considering raising the upper limit of the pension provided under the Atal Pension Yojana to ₹10,000 per month.

In India, "informal workers"—that is, laborers in the unorganized sector—include:

Street vendors
Domestic workers
Daily wage laborers
And self-employed individuals

Together, they constitute approximately 90 percent of the total workforce.

These workers typically lack benefits such as a fixed salary, job security, or provident fund (PF) and pension facilities; therefore, schemes like this are crucial for their well-being.

Why is this change necessary?

The Atal Pension Yojana was launched in May 2015 with the objective of providing financial security during old age.

Under this scheme, a guaranteed pension ranging from ₹1,000 to ₹5,000 is provided after the age of 60.

However, due to rising inflation, this amount is no longer considered sufficient.

What is the current situation?

To date, 90 million (9 crore) people have enrolled in this scheme.
Additionally, nearly half of the subscribers have stopped making regular contributions.
In the financial year 2025-26, a record 13.5 million (1.35 crore) new subscribers joined the scheme.

What is the new proposal?

The Pension Fund Regulatory and Development Authority (PFRDA) and the Ministry of Finance are working jointly on this proposal. It is now anticipated that the maximum pension limit will be raised from ₹5,000 to ₹10,000 per month, ensuring that the pension remains adequate for beneficiaries in the face of rising inflation.

How will the scheme be expanded?

The government plans to extend this scheme to every village through 'Pension Sakhis' and Business Correspondents (BCs). On January 26, 2026, the Cabinet approved the continuation of this scheme until 2031.

Will this increase the burden on the government?

According to experts, this will not place a significant burden on the government.
The scheme is primarily based on the individuals' own contributions.