The Pension Fund Regulatory and Development Authority (PFRDA) is examining proposals to enhance the monthly pension payout limit under the government-backed Atal Pension Yojana (APY), according to a PTI report. Currently, the scheme offers a maximum guaranteed pension of Rs 5,000 per month after the age of 60. Speaking at the APY annual felicitation programme held in New Delhi on May 20, PFRDA chairman Deepak Mohanty Ramann indicated that the matter is under active consideration, though no immediate decision is expected.
“It will take time because these are long-term schemes, and long-term liabilities of the government are intertwined,” he said at the APY annual felicitation programme in New Delhi on 20 May.
The pension regulator stated that it is continuing to study requests seeking an increase in the pension ceiling under the Atal Pension Yojana. Ramann noted that the authority will consult the Department of Financial Services (DFS) and prepare a detailed assessment before taking any further steps.
“The authority is “continuing to evaluate and work on the demand”,” Ramann said, according to the report.
He also cautioned that the matter involves financial commitments from the government, making the review process more complex. “It is too premature to arrive at any conclusion at this stage,” according to the executive.
The development comes amid rising discussions around retirement planning and social security benefits for workers in the unorganised sector.
What Is the Atal Pension Yojana?
Introduced in 2015, the Atal Yojana was launched to create a broad-based social security framework for citizens, especially low-income and unorganised sector workers. The scheme is managed by PFRDA under the National Pension System (NPS) framework.
The programme is open to Aadhaar-linked bank account holders aged between 18 and 40 years who are not income-tax payers. Subscribers are required to contribute regularly for at least 20 years to become eligible for pension benefits after turning 60.
Depending on the amount contributed, subscribers receive a guaranteed pension ranging from Rs 1,000 to Rs 5,000 per month. After the subscriber’s death, the pension is transferred to the spouse, while the accumulated corpus is returned to the nominee.
The scheme also offers tax benefits under Section 80CCD of the Income Tax Act, 1961. Individuals can claim deductions of up to Rs 1.5 lakh, along with an additional exemption of Rs 50,000 under Section 80CCD(1B).
APY Subscriber Base Nears 10 Crore Mark
At the same event, Ramann highlighted the rapid growth of the APY subscriber base. According to him, the total number of subscribers is likely to cross 10 crore during the current financial year. Data showed that the subscriber count rose to 8.96 crore by the end of FY26, compared to 7.61 crore in the previous fiscal year. The scheme added a record 1.35 crore subscribers during the period.
“With the annual growth of 18 per cent, we hope to cross 10 crore subscribers base in FY27,” Ramann said. He further pointed to a sharp rise in participation among individuals aged 18 to 25 years, signalling stronger awareness about retirement planning among younger Indians.
According to PFRDA figures, the National Pension System (NPS) also witnessed steady expansion. Total NPS subscribers stood at 2.17 crore at the end of FY26, while the total pension corpus reached Rs 15.95 lakh crore.