The Ministry of Finance on Thursday announced that the government has modified Atal Pension Yojana (APY) to increase the acceptability of the scheme amongst informal sector workers and make the scheme more viable.
The Atal Pension Yojana (APY), launched by the Prime Minister Narendra Modi, provides a minimum guaranteed pension of Rs.1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, at the age group of 18-40 years.
"Certain suggestions have been received, including from the state governments, regarding providing certain relaxations for informal sector workers, having intermittent incomes, from the provision of mandatory monthly contributions under the scheme of APY and also removing the penal provisions for non-contribution under apy to make the scheme more viable," Ministry of Finance said in a statement.
The modified provisions carried out in the scheme provide the individual subscribers with an option to make the contribution on a monthly, quarterly, half yearly basis instead of on a monthly basis earlier.
Discontinuation of payment of contribution provision has been substantially modified in favour of the subscriber. Also the penalty on delayed payment has been simplified to Rs. 1 per month for contribution of Rs. 100, or part thereof, for each delayed monthly payment instead of different slabs given earlier.