- 8.33%Paid by your employer
- 10 yearsService for a pension
- From 58Or from 50, reduced
- ₹1,000Minimum pension a month
What is the Employees' Pension Scheme (EPS-95)?
The Employees' Pension Scheme (EPS) gives a monthly pension to people who worked in jobs covered by PF. It started on 16 November 1995, so it is often called EPS-95. Since 29 June 2026, its rules are in the Employees' Pension Scheme, 2026, which kept all existing pension rights. EPFO runs it.
You do not pay anything into EPS. A part of your employer's PF share goes into it. EPS does not build a balance with interest like EPF. Instead, it pays a pension based on your salary and your years of service.
- Step 1Employer pays8.33% of basic + DA, up to ₹25,000 a month.
- Step 2Work 10+ yearsIn PF-covered jobs, under one UAN.
- Step 3Pension for lifeFrom 58, or a reduced pension from 50.
- Step 4Then your familySpouse gets 50%, plus children's pension.
Example: Suresh, 45. He joined his first PF job at 25 and will work until 58. His basic + DA is ₹40,000 a month today and rises about 5% a year. That is 33 years of service. His pension depends on how EPFO values his service before 17 September 2026 (see below).
- Pension at 58
- ₹8,708/month
- If all at ₹25,000
- ₹12,500/month
- Wife after him
- ₹4,354/month
Who is an EPS member?
- Yes: PF members whose basic + DA was within the ceiling when they joined
- Yes: PF members who joined before 1 September 2014, at any salary
- Yes: Since 17 September 2026, PF members earning up to ₹25,000 who were left out before
- No: New PF members from 1 September 2014 whose basic + DA was above the ceiling then in force when they joined
- No: Members aged 58 and above: EPS contributions stop
Your EPFO passbook shows a separate "pension contribution" column if you are an EPS member. If it shows zero, your whole employer share goes to EPF.
EPS pension formula with an example
Monthly pension = pensionable salary × pensionable service ÷ 70
- Pensionable salary: your average basic + DA over the last 60 months before you leave, capped at the ceiling.
- Pensionable service: your years in PF-covered jobs. If it is 20 years or more, 2 extra years are added.
Example: 30 years of service, with salary at or above ₹25,000 for the last 60 months: ₹25,000 × (30 + 2) ÷ 70 = ₹11,429 a month.
Monthly pension at 58, by years of service, when salary is at or above the ceiling:
| Service | ₹15,000 ceiling | ₹25,000 ceiling |
|---|---|---|
| 10 years | ₹2,143 | ₹3,571 |
| 15 years | ₹3,214 | ₹5,357 |
| 20 years (+2) | ₹4,714 | ₹7,857 |
| 25 years (+2) | ₹5,786 | ₹9,643 |
| 30 years (+2) | ₹6,857 | ₹11,429 |
| 35 years (+2) | ₹7,929 | ₹13,214 |
EPS wage ceiling over the years, and the open question
| Period | Ceiling a month | Most employer pays to EPS | Salary averaged over |
|---|---|---|---|
| November 1995 to May 2001 | ₹5,000 | ₹417 | 12 months |
| June 2001 to August 2014 | ₹6,500 | ₹541 | 12 months |
| September 2014 to September 2026 | ₹15,000 | ₹1,250 | 60 months |
| From September 2026 | ₹25,000 | ₹2,083 | 60 months |
When the ceiling went up in 2014, EPFO split each member's service. Years before 1 September 2014 were valued at the old ₹6,500 ceiling, and later years at ₹15,000. This is called pro-rata (part by part) pension.
EPFO has not yet said whether service before 17 September 2026 will be valued at ₹15,000 or at ₹25,000. For Suresh, the two answers are:
| Period | Ceiling | Service | Pensionable salary | Pension |
|---|---|---|---|---|
| October 2006 to September 2014 | ₹6,500 | 7.8 years | ₹6,500 | ₹728 |
| September 2014 to September 2026 | ₹15,000 | 12 years | ₹15,000 | ₹2,581 |
| September 2026 to October 2039 | ₹25,000 | 13.1 years | ₹25,000 | ₹5,400 |
Valued part by part, his pension at 58 is ₹8,708 a month. If all his service is valued at ₹25,000, it is ₹12,500. The EPS pension calculator shows both for your own figures.
EPS 10-year rule: withdrawal benefit and scheme certificate
A monthly pension needs at least 10 years of service. Service in all your PF jobs adds up, as long as it stays under one UAN and you do not withdraw the EPS amount in between.
- Step 1Withdrawal benefitService under 10 years: a lump sum based on your salary and years of service, after 36 months without a PF job.
- Step 2Scheme certificateKeeps your service on record, so it adds to your next PF job. Useful if you may work again.
- Step 3Apply with Form 10CFor either one, online on the EPFO member portal.
Before the 2026 rules, the EPS amount could be withdrawn after 2 months without work. Now the wait is 36 months. Once you have 10 years of service, you cannot withdraw EPS as cash; you get a pension or a scheme certificate.
EPS early pension from 50 and deferred pension to 60
The full pension starts at 58. You can start it earlier, from 50, if you have left PF-covered work. It is cut by 4% for each year before 58, for life. You can also delay it to 60 and get 4% more for each year. For 30 years of service at the ₹25,000 ceiling:
Starting at 54 instead gives ₹9,600 a month, which is 16% less than the full pension.
EPS minimum pension
The minimum EPS pension is ₹1,000 a month, for members with at least 10 years of service. If the formula gives less, the pension is raised to ₹1,000. The spouse's pension is also at least ₹1,000. The pension does not go up with prices; it stays the same for life.
EPS family pension: spouse, children and orphans
If the member dies, in service or after the pension has started, the family gets a monthly pension. For Suresh:
- Step 1Spouse50% of the member's pension, at least ₹1,000, until death or remarriage. For Suresh's wife: ₹4,354.
- Step 2Children25% of the spouse's pension each, for up to 2 children at a time, until 25. For each: ₹1,089.
- Step 3OrphansIf there is no spouse, 75% of the spouse's pension each, for up to 2 children. For each: ₹3,266.
- Step 4Disabled childA child with a permanent disability gets the children's pension for life.
- If there is no spouse or child, the nominee gets the pension. If there is no nominee, a dependent parent can get it.
- A member who dies in service gets a family pension even with less than 10 years of service.
- The family claims with Form 10D. The PF balance and the EDLI insurance are claimed separately (see the EPF page).
EPS higher pension (Supreme Court 2022)
Some members and their employers paid into EPS on the full salary, above the ceiling. On 4 November 2022, the Supreme Court allowed eligible members to choose pension on their actual salary. These members get pension on their real average pay, with no ceiling.
- It was open mainly to members who were in service on 1 September 2014 or later, and to some who retired earlier and had already chosen it.
- Members had to apply jointly with their employer, and EPFO had to approve it. The window to apply has closed.
- Most members are not in the higher pension. Those who are have an approval from EPFO.
How to claim EPS pension: Form 10D
- Step 1Check your UAN and KYCAadhaar, PAN and bank account linked and verified.
- Step 2Fill in Form 10DOn the EPFO member portal, under Online Services, then Claim.
- Step 3Verify with Aadhaar OTPAdd details of your spouse and children for family pension.
- Step 4Get your PPOThe Pension Payment Order gives your pension number and amount.
- Step 5Pension every monthPaid into your bank account.
Apply when you reach 58, or from 50 for an early pension, after you leave PF-covered work. You can also apply on paper at the EPFO regional office, through your last employer.
Life certificate for EPS pensioners (Jeevan Pramaan)
Every EPS pensioner must give a life certificate once a year, or the pension stops. A digital life certificate is called Jeevan Pramaan. It stays valid for 12 months from the day you give it.
- Step 1From your phoneFace authentication with the Jeevan Pramaan or UMANG app and the Aadhaar Face RD app.
- Step 2At your bankThe bank branch where your pension comes.
- Step 3At a CSC or EPFO officeCommon Service Centres and EPFO offices take it too.
- Step 4At your doorThe India Post Payments Bank postman can do it at home.
EPS pension tax
- Not taxedEmployer's EPS shareWhile you work
- TaxableMonthly pensionAt your slab rate
- TaxableFamily pensionWith a small deduction
EPS: strengths and limits
- Yes: Pension for life, with no cost to you
- Yes: Pension for spouse and children after you
- Yes: Minimum pension of ₹1,000
- Yes: Early pension possible from 50
- No: Pension is small, as salary is capped at ₹25K
- No: Fixed amount, no increase for prices
- No: Needs 10 years of service
- No: No balance or interest you can see
EPS vs EPF
| EPS | EPF | |
|---|---|---|
| Who pays | Employer, 8.33% of wages up to ₹25,000 | You 12%, employer the rest of its 12% |
| What you get | Monthly pension for life | Lump sum with interest |
| Interest | None; pension by formula | 8.25% for FY 2025-26 |
| When | From 58 (reduced from 50) | At 58, partial withdrawals before |
| Withdraw early | Only if service is under 10 years | Yes, within the 2026 withdrawal rules |
| For the family | Spouse 50%, plus children's pension | Full balance to the nominee, plus EDLI cover |
See your EPF corpus on the EPF calculator, and read the PF withdrawal rules 2026.
Frequently asked questions
What is the Employees' Pension Scheme (EPS)?
EPS is the pension part of your PF. Your employer puts 8.33% of your basic pay + DA (up to ₹25,000 a month) into it. After 10 years of service, you get a monthly pension for life from 58, and your family gets a pension after you.
How is EPS pension calculated?
Monthly pension = pensionable salary × pensionable service ÷ 70. Pensionable salary is your average basic + DA over the last 60 months, capped at the ceiling. With 30 years at the ₹25,000 ceiling, the pension is ₹25,000 × 32 ÷ 70 = ₹11,429 a month, including the 2-year bonus.
What is the 10-year rule in EPS?
You need at least 10 years of service for a monthly pension. With less, you can take a lump-sum withdrawal benefit, or get a scheme certificate so the service adds to your next PF job.
Can I get EPS pension at 50?
Yes, if you have 10 years of service and have left PF-covered work. The pension is cut by 4% for each year before 58, so at 50 you get 68% of the full amount, for life.
What is the minimum EPS pension?
₹1,000 a month for a member with at least 10 years of service. The spouse's pension is also at least ₹1,000.
Does the ₹25,000 ceiling increase my EPS pension?
For service from 17 September 2026, yes: pension can be worked out on up to ₹25,000. EPFO has not yet said how it will value service before that date. When the ceiling last rose in 2014, earlier service was valued at the old ceiling.
Can I withdraw my EPS money?
Only if your service is under 10 years and you have not joined another PF job for 36 months. After 10 years, you cannot withdraw it; you get a pension instead.
What happens to EPS pension after the member's death?
The spouse gets a family pension of 50% of the member's pension, at least ₹1,000, for life or until remarriage. Up to 2 children also get 25% of the spouse's pension each, until 25.
Which form is used to claim EPS pension?
Form 10D, online on the EPFO member portal or at the EPFO office. Form 10C is used for the withdrawal benefit or a scheme certificate when service is under 10 years.
Does EPS pension increase every year?
No. EPS pays a fixed amount every month for life. There is no yearly increase for prices.
Do I have to give a life certificate for EPS pension?
Yes, once a year. You can give a digital life certificate (Jeevan Pramaan) through face authentication on your phone, at a bank, at a Common Service Centre or through the India Post Payments Bank postman. It stays valid for 12 months.
Is EPS pension taxable?
Yes. The monthly pension is added to your income and taxed at your slab rate. The employer's contribution to EPS is not taxed in your hands while you work.