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Increase in Old Age Pension Under NSAP Improves Average Payouts in States

Written by: Team Angel OneUpdated on: 6 Aug 2025, 6:02 pm IST
NSAP beneficiaries above 80 now get ₹500/month, while state contributions raise the average monthly pension to ₹1,000 across most states.
Increase in Old Age Pension Under NSAP Improves Average Payouts in States
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The Government of India has revised the pension structure under the National Social Assistance Programme (NSAP), enhancing the monthly pension for elderly citizens. With state-level top-ups now supplementing central support, the average monthly pension across many regions has reached approximately ₹1,000, greatly benefiting millions of senior citizens.

Revised Pension Structure Enhances Elderly Support

Under NSAP, the central government provides ₹200 per month for beneficiaries aged between 60 and 79 and ₹500 per month for individuals above 80. States and union territories are encouraged to match or exceed this contribution. Currently, the top-up contributions range from ₹50 to ₹3,800, significantly raising the overall pension amount provided to the elderly in several states.

Average Monthly Pension Rises Across States

With state support added, the average monthly pension has improved to around ₹1,000 in many regions. For instance, in states like Rajasthan and Madhya Pradesh, the total disbursal over the last 5 years has consistently climbed. Rajasthan alone received ₹39,985.88 lakh in 2024-25, up from ₹6,586.06 lakh in 2021-22, showing stronger funding efforts for senior citizens.

Read More: Govt Extends Deadline to Switch to UPS (Unified Pension Scheme) till September 30!

Focused Allocation for SC and ST Beneficiaries

Before 2021–22, there was no separate fund allocation for Scheduled Castes (SC) and Scheduled Tribes (ST) under NSAP. However, since then, distinct allocations have been made, identifying SC and ST categories among existing beneficiaries and directing funds accordingly. In 2024–25, Rajasthan received ₹8,178.27 lakh for SC and ₹4,162.24 lakh for ST categories under the scheme.

State-Wise Commitment Remains Strong

Large states like Uttar Pradesh and Bihar continue to receive substantial allocations. Uttar Pradesh was granted ₹1,42,552.11 lakh in 2024–25, reflecting the scheme’s continued relevance and widespread adoption. Smaller states like Tripura and Mizoram also witnessed consistent funding growth, promoting inclusive support across diverse regions.

Conclusion

The increased contributions under NSAP and proactive state participation have significantly boosted pension support for India’s elderly. The revised structure aims not only to ensure financial security but also to recognise and support the dignity of senior citizens nationwide.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 6, 2025, 12:32 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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