The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to extend the Atal Pension Yojana until the financial year 2030–31, providing continued government backing to one of India’s most important social security schemes for workers in the unorganised sector. The decision ensures that central government support will carry on not only for running the scheme, but also for awareness campaigns, outreach activities and related development work. It also includes gap funding, which is necessary to keep the scheme financially stable and able to meet its obligations over time. This step underlines the government’s focus on strengthening income security for low-income and informal workers, particularly when a large part of the workforce is still employed outside the formal sector. For daily wage earners, self-employed individuals and small traders, the scheme offers much-needed assurance about their post-retirement years, an area where informal jobs usually provide little or no protection. Under the approved plan, the Atal Pension Yojana will continue for another six years with direct government backing. The priority will be to bring more eligible people into the scheme, increase awareness about the importance of pension planning, and strengthen the institutions responsible for its implementation. Rural and semi-urban regions, where pension coverage is still uneven and awareness is limited, will receive particular attention. Continuing gap funding will help address any financial gaps and ensure that the guaranteed pension promise is met. The Finance Ministry has said that sustained public support is vital to maintain confidence in the scheme and encourage more workers without access to formal retirement benefits to enrol.

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Focus on unorganised workers, financial inclusion The Atal Pension Yojana is meant to give workers in the unorganised sector such as daily wage earners, self-employed people and small traders - a reliable source of income in old age. With a fixed and predictable pension, the scheme helps reduce financial insecurity after retirement and strengthens the safety net for households that have little or no long-term savings. Officials said extending the scheme fits into the government’s larger goal of widening financial inclusion and gradually moving India towards a society where more people are covered by pensions. Guaranteed pension structure explained Launched on May 9, 2015, the scheme offers a guaranteed minimum monthly pension ranging from Rs 1,000 to Rs 5,000, starting at the age of 60. Read More: Major banking reform on the cards? Union Budget 2026 may flag a new Governance Bill for PSU banks Regional rural banks have contributed 19.80 per cent, followed by private sector banks at 6.18 per cent. Payment banks, small finance banks and cooperative banks together account for the remaining share. The government has emphasised that promotional and developmental funding is critical to sustain enrolment growth and ensure last-mile delivery. Read More: Buying gold or silver? Motilal Oswal recommends what to buy, how much to hold as gold hits Rs 1.57 lakh, silver above Rs 3.30 lakh