Is EPS-95 Pension Set For A Hike in 2026? Know How Much You Could Get And How It’s Calculated

The Employees’ Pension Scheme (EPS) is part of the EPFO benefits designed to give employees a monthly pension after retirement. It also provides family and disability pensions if the member dies or becomes permanently disabled. The scheme mainly covers employees in India’s organised sector.

Both employee and employer contribute 12 percent of basic salary plus DA to EPF. Out of the employer’s share, 8.33 percent (up to Rs 1,250) goes to EPS. The Government adds 1.16 percent (up to Rs 174) for employees earning up to Rs 15,000 a month.

To receive a pension under EPS, you must:

Be an EPFO member

Contribute to EPS for at least 10 years

Reach 58 years of age (full pension) Early pension can start at 50 years, but it reduces by 4 percent per year before 58.

Formula: Pension = (Average Salary × Pensionable Service) ÷ 70

Average Salary: Basic pay + DA of the last 60 months (max Rs 15,000)

Pensionable Service: Total years worked under EPS (maximum 35 years) If your service is more than 20 years, you get an extra 2 years added to your service.

Minimum pension: Rs 1,000 per month

Maximum pension: Rs 15,000 × 35 ÷ 70 = Rs 7,500 per month Even if you have multiple jobs, all your EPS accounts are merged for a single pension.

EPS covers different situations:

Superannuation pension: After age 58

Early pension: From age 50 (reduced rate)

Disability pension: For permanent disability

Family pension: To spouse or dependents after the member’s death

EPS is mainly funded by employers, not employees.

Pension depends on service years and average salary.

Salary cap for pension calculation is Rs 15,000.

Check EPS details via your EPF passbook on the EPFO portal.

Delaying withdrawal till 60 increases your pension by 4 person per year.