The government plans to offer relief to laborers and workers in the upcoming Budget 2025.
One key proposal in the first budget of the third term under the Modi government is an increase in the pension amount under the Atal Pension Scheme.
The Atal Pension Scheme was designed with the unorganized sector in mind, and currently, the maximum pension one can receive under this scheme is Rs 5,000.
For some time, there has been a demand from the unorganized sector to raise this pension amount.
Sources suggest that the government is considering an increase to Rs 10,000, and this proposal is nearing approval.
Details of the Atal Pension Scheme and Upcoming Changes
The Budget will be presented on Saturday, February 1. A government official confirmed to Moneycontrol that the proposal to raise the minimum pension to Rs 10,000 is in its final
stages, with the government almost ready to approve it. If approved, this change will likely be announced in the upcoming Budget.
The Atal Pension Yojana, launched by Prime Minister Narendra Modi on May 9, 2015, is a social security scheme aimed at providing financial security to workers, laborers, and the elderly, particularly those from lower-income groups.
It was named after former Prime Minister Atal Bihari Vajpayee. Currently, individuals who invest in this scheme can receive pensions ranging from Rs 1,000 to Rs 5,000 after reaching the age of 60, depending on their contributions. The scheme is open to those up to 40 years old.
How Atal Pension Yojana Works
As of October 2024, over 7 crore people had joined the Atal Pension Yojana during the 2024-25 financial year.
This scheme, managed by the Pension Fund Regulatory and Development Authority (PFRDA), guarantees a minimum pension based on the amount invested.
After turning 60, the pension amounts can range from Rs 1,000 to Rs 5,000 per month, depending on the contribution.
The amount you need to invest depends on your age when joining the scheme.
For example, to receive a monthly pension of Rs 1,000 starting at age 18, a person would need to contribute Rs 42 every month. For a pension of Rs 5,000, the monthly contribution could be as high as Rs 1,454.
Eligibility and Registration Process
To join the Atal Pension Yojana, you must be between the ages of 18 and 40 and have a bank account.
Taxpayers are not eligible for this scheme. The required contribution varies based on the desired pension amount.
You can apply for the scheme either offline or online. To apply offline, visit your bank, fill out the registration form, submit your Aadhaar card,
and provide other necessary documents. Once the application is processed, you will receive confirmation via SMS.
For online registration, visit your bank’s website or use their mobile app. Log in, search for “Atal Pension Yojana,” complete the application,
and set up auto-debit for your monthly contribution. After verifying your details, submit the form to complete the registration.
