Will Atal Pension Yojana payouts be increased in Union Budget 2026?

The scheme has crossed 8.66 crore subscribers as of January 19, 2026

Will the government raise pension payouts under the Atal Pension Yojana (APY) in the upcoming Union Budget 2026–27? With monthly pensions currently capped between Rs 1,000 and Rs 5,000, subscribers have been seeking higher payouts amid rising inflation. While the scheme has been extended till 2030–31, expectations are mounting over a possible pension hike.

Atal Pension Yojana: All you need to know

The Atal Pension Yojana (APY) was launched on May 9, 2015, with the objective of providing old-age income security to workers in the unorganised sector. It offers a guaranteed minimum pension of Rs 1,000 to Rs 5,000 per month starting at age 60, based on contributions – which varies from Rs 42 to Rs 1454 based on age of joining and pension amount chosen.

On January 21, the union cabinet approved the continuation of APY up to FY 2030-31 along with extension of funding support for promotional and developmental activities and gap funding.

The scheme has crossed 8.66 crore subscribers as of January 19, 2026.

The scheme will continue up to 2030-31 with government support for promotional and developmental activities to expand outreach among unorganised workers including awareness, capacity building, said an official release after the meeting of the cabinet chaired by Prime Minister Narendra Modi.

Last year in December, the government had said it isn’t planning to increase the pension amount anytime soon given that it will increase the subscription amount as well, burdening the subscriber further.

“Presently, it has been decided to continue the scheme with the same terms and conditions and not to further increase the pension and consequential subscription amount,” Minister of State for Finance Pankaj Chaudhary said in a written reply to a query in the Lok Sabha.