THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 21, 2026

In a significant move to strengthen India’s social security architecture, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030-31, along with the extension of government funding support for promotional, developmental and gap funding activities. The decision underscores the government’s commitment to ensuring old-age income security for millions of low-income and unorganised sector workers while deepening financial inclusion across the country.

Under the approved framework, the scheme will continue to receive government support for expanding outreach among unorganised workers through sustained awareness campaigns and capacity-building initiatives, ensuring that the benefits of APY reach the last mile. In addition, gap funding support will be provided to meet viability requirements and maintain the long-term sustainability of the scheme, reinforcing confidence among subscribers.

The extension of APY is expected to have a far-reaching impact by securing a steady pension for workers who remain outside formal social security systems, thereby enhancing financial resilience in old age. It also marks a crucial step towards India’s transition into a pensioned society and aligns with the broader vision of Viksit Bharat @2047 by building a robust and sustainable social security framework.

Launched on May 9, 2015, the Atal Pension Yojana was designed to provide assured old-age income to workers in the unorganised sector. The scheme offers a guaranteed minimum monthly pension ranging from Rs.1,000 to Rs.5,000, commencing at the age of 60, based on the subscriber’s contribution during the working years. Over the past decade, APY has emerged as a cornerstone of inclusive growth, with more than 8.66 crore subscribers enrolled as of January 19, 2026.

The government noted that continued support is essential to maintain momentum, enhance awareness and bridge viability gaps, ensuring that APY remains financially sound and accessible. With this extension, the Centre has reaffirmed its resolve to protect the future of unorganised workers and strengthen the foundations of social security in the years leading up to 2031.