Swavalamban Pension Yojana

6 mins read
by Angel One
Swavalamban Pension Yojana is a government-backed pension scheme for workers in the unorganised sector in India. Read on to know everything about this pension scheme.

Launched in 2010 as a part of the government’s effort to encourage individuals from the unorganised sector to save for their retirement, the Swavalamban Pension Yojana, also known as the National Pension System Swavalamban Scheme, is a government-backed pension scheme in India. For the unorganised sector’s pension benefits to be streamlined and improved, it amalgamated with the Atal Pension Yojana in 2015.

What is Swavalamban Pension Yojana? 

The Swavalamban Pension Yojana, also known as the National Pension System Swavalamban Scheme, was a pioneering initiative by the Indian government aimed at addressing the retirement planning needs of individuals in the unorganised sector of the country. 

At its core, Swavalamban, which translates to “self-reliance,” embodied the government’s commitment to empowering the workforce in the unorganised sector by offering them a structured and accessible means to save for their post-retirement years. This innovative scheme encouraged individuals from various walks of life, including labourers, daily wage earners, and self-employed workers, to participate actively in building their financial security for the future.

Under the Swavalamban Pension Yojana, eligible subscribers were required to make regular contributions to their NPS accounts, with varying contribution levels based on their income and age. The government, recognising the importance of incentivising retirement savings, offered a co-contribution to boost the pension corpus of eligible subscribers.

Swavalamban Pension Yojana

Features of the Swavalamban Scheme

These are the key features of the Swavalamban Pension Yojana:

Eligibility: The scheme was primarily aimed at the unorganised sector, which constitutes a significant portion of India’s workforce. It included labourers, domestic workers, street vendors, and self-employed individuals who did not have access to formal pension plans provided by their employers.

Age Range: The scheme was inclusive in terms of age eligibility, allowing individuals as young as 18 to join and contribute. It extended the opportunity to start saving for retirement to people at various stages of their working lives, promoting long-term financial security.

Voluntary Participation: Participation in the Swavalamban Pension Yojana was entirely voluntary. This voluntary nature ensured that individuals could choose to enrol based on their financial capacity and understanding of the scheme’s benefits.

Contributions: Subscribers were required to make regular contributions to their National Pension System accounts. These contributions were designed to be affordable for individuals in the unorganised sector, with varying contribution levels based on their age and income.

Government Co-contribution: One of the scheme’s notable features was the government’s co-contribution. To encourage regular contributions, the government provided a co-contribution to the accounts of eligible subscribers. This financial boost served as an incentive for subscribers to save consistently.

Income-based Contribution Levels: The contribution amounts were structured to be proportional to the income of the subscriber. This approach ensured that individuals with varying income levels could participate and save for retirement, regardless of their financial situation.

Withdrawal Options: Upon reaching the age of 60, subscribers had the flexibility to withdraw a portion of their accumulated pension corpus as a lump sum. This lump sum withdrawal option allowed retirees to address immediate financial needs or aspirations.

Annuity Options: Subscribers were given the choice to select from various annuity options available under the scheme. These annuity plans provided regular pension income to subscribers, allowing them to receive financial support throughout their retirement years.

Portability: NPS accounts under the Swavalamban Pension Yojana were portable. This means that subscribers could continue contributing to the same account even if they changed jobs or locations, ensuring continuity in their retirement savings.

Merging with Atal Pension Yojana: In 2015, the Swavalamban Pension Yojana was merged with the Atal Pension Yojana (APY), a move aimed at simplifying the pension landscape for individuals in the unorganised sector. This merger streamlined the administration of the scheme and made it more comprehensive.

Financial Inclusion: The scheme was aligned with the government’s financial inclusion agenda, extending pension benefits to a previously underserved population segment. It brought people into the formal financial system and promoted economic security in retirement.

Government Support: The government played a crucial role in supporting the scheme by providing co-contributions, raising awareness, and facilitating the enrolment process. This support was vital in encouraging participation and ensuring the scheme’s success.

Swavalamban Pension Yojana Eligibility 

The Swavalamban Pension Yojana had specific eligibility criteria that individuals needed to meet in order to participate in the scheme-

Age Eligibility:

The minimum age to join the Swavalamban Pension Yojana was 18 years.

The maximum age to enrol in the scheme was 40 years. Individuals aged 40 or above were not eligible to join.

Income Criteria:

Eligibility was extended to individuals in the unorganised sector, which includes workers in various informal occupations.

There were no strict income limits or requirements. The scheme aimed to be inclusive, allowing individuals with diverse income levels to participate.

Bank Account:

To enrol in the scheme, individuals were required to have a savings bank account. The pension contributions and government co-contributions would be credited to this account.

Aadhaar Card:

Having an Aadhaar card was often a requirement for enrolment in the scheme. Aadhaar, India’s unique identification system, was used for identification and verification purposes.

Compliance with KYC Norms:

Subscribers were typically required to complete the KYC process, which involved providing necessary identity and address proof documents, to ensure their authenticity and eligibility.

It’s important to note that the Swavalamban Pension Yojana aimed to be as inclusive as possible, allowing a wide range of individuals in the unorganised sector to participate and benefit from the scheme.

Application Process for Swavalamban Pension Yojana 

To apply for the Swavalamban pension yojana perform the following steps: 

  1. All candidates were required to complete the NPS-Swavalamban enrolment form. Individuals may register for the Swavalamban Scheme online. You may also do it offline.
  2. Following the Swavalamban scheme log-in, users were required to provide multiple KYC papers for identification and domicile proof. 
  3. Individuals were required to send in a payment online or a manual deposit of a minimum of Rs 100 during registration. 

Benefits of the Swavalamban Pension Scheme

  • The Swavalamban Pension Scheme offered significant benefits to individuals in India’s unorganised sector. It provided financial security during retirement by allowing affordable, flexible contributions based on income and age. 
  • The government’s co-contribution incentivised savings and tax benefits further encouraging participation.
  • Portability ensured uninterrupted savings, while the choice of annuity options allowed subscribers to align their pension plans with their needs. 
  • Additionally, the scheme promoted financial inclusion, making formal pension systems accessible to those previously excluded. With a straightforward application process, this initiative empowered millions to secure their financial future and merge seamlessly into the broader pension landscape.


The Swavalamban Pension Yojana served as a pivotal tool for promoting retirement savings in India’s unorganised sector. By offering affordability, government co-contributions, and flexible contributions, it aimed to ensure financial security in retirement while fostering financial inclusion and tax benefits.


Who was eligible for the Swavalamban Pension Yojana?

Eligibility included individuals aged 18-40 in India’s unorganised sector, such as labourers and self-employed workers, without access to formal pension schemes.

What were the contribution levels under the scheme?

Contribution amounts varied based on age and income, providing flexibility to subscribers. The government also co-contributed, boosting retirement savings.

What happened to the Swavalamban Pension Yojana?

In 2015, it merged with the Atal Pension Yojana to streamline and enhance pension benefits for the unorganised sector.

What were the tax benefits associated with the scheme?

Contributions made to the National Pension System under the scheme were eligible for tax benefits under Section 80CCD of the Income Tax Act, providing tax advantages to participants.