The Govt. of India announced a new scheme in 2015-16 budget called Atal Pension Yojana (APY) with an objective to ensure old age income security for the citizens in the unorganized sector. Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.
In APY, Government will co-contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015 and are not covered by any Statutory Social Security Schemes and is not an income tax payer. The Government co-contribution will be given for 5 years from FY 2015-16 to 2019-20.