The Government of India is preparing to increase the scope of social security coverage for workers in the unorganized sector. In view of rising inflation—and rising expenses during retirement—the government is considering increasing the upper limit of the minimum pension offered under the Atal Pension Yojana to ₹10,000 per month.
In India, “informal workers”—that is, workers in the unorganized sector—include:
Street vendors
domestic workers
daily wage laborer
and self-employed people
All these groups together constitute about 90 percent of the total workers.
Since they generally do not have fixed salaries, job security, or facilities like provident fund (PF) and pension schemes, initiatives like Atal Pension Yojana are very important for their welfare.
Why is this change necessary?
Atal Pension Yojana was launched in May 2015 with the main objective of providing economic security during old age.
Under this scheme, subscribers receive a guaranteed monthly pension ranging from ₹1,000 to ₹5,000 after they complete 60 years of age.
However, due to rising inflation, these amounts are no longer considered sufficient.
What is the current situation now?
Till now, 90 million (9 crore) people have enrolled their names in this scheme.
Moreover, almost half of the customers have stopped depositing money regularly.
In the financial year 2025-26, a record 13.5 million (1.35 crore) new customers joined the scheme.
What is the new proposal?
Pension Fund Regulatory and Development Authority (PFRDA) and the Finance Ministry are working together on this proposal. It is now expected that the maximum pension limit will be increased from ₹5,000 to ₹10,000 per month, to ensure that the amount people receive remains sufficient for them despite rising inflation.
How will this scheme be expanded?
The government is planning to expand the reach of the scheme to every village in the country through a network of *Pension Sakhis* (pension facility providers) and Business Correspondents (BCs). On January 26, 2026, the Cabinet approved the continuation of the scheme till 2031.
Will this increase the financial burden on the government?
According to experts, this step is not likely to impose any significant additional financial burden on the government. This scheme is mainly based on people’s own contribution.
