The Union Government’s ambitious Atal Pension Yojana (APY), launched in 2015 to provide universal social security to India’s unorganised workforce, has witnessed a remarkable surge in enrolments, with five states alone accounting for nearly half of the total subscribers.
According to the latest data presented in the Lok Sabha, Uttar Pradesh leads 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%). Combined, these states contribute almost 48 per cent of the total enrolments under the scheme, highlighting significant regional disparities in pension coverage.
APY currently offers a flexible minimum guaranteed pension ranging from ₹1,000 to ₹5,000 per month, depending on the subscriber’s contributions. Monthly subscription amounts vary from ₹42 to ₹1,454; influenced by the enrolment age and the chosen pension slab.
APY enrolments have skyrocketed from 1.54 crore in March 2019 to a staggering 7.33 crore by January 2025, recording a CAGR of 29 per cent. The financial year 2024-25 alone saw over 89.95 lakh new enrolments, reflecting growing awareness and reliance on the scheme among India’s informal workforce.
Interestingly, the scheme has seen substantial female participation, with women making up around 47 per cent of the total subscribers. This trend underscores the scheme’s reach in promoting financial security among women in the unorganised sector.
Why are some states leading?
States with larger populations and higher rural demographics, like 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.
Northern and Eastern states generally show stronger enrolment figures compared to their Southern and Northeastern counterparts, with exceptions like Tamil Nadu and Karnataka, where enrolments are relatively higher.
No change in pension benefits, says Government
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.
The government’s decision comes amid concerns that increasing the pension would significantly hike subscription costs, placing an additional financial burden on subscribers.
In a significant policy shift in 2022, the scheme was amended to exclude income taxpayers from eligibility, aiming to target the economically vulnerable population better. 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.