Key takeaways:

The EPFO launched the Employees Pension Scheme(EPS), 1995. It is one of the most trusted pillars in the journey of retirement planning.
The EPS helps employees receive a monthly pension after they retire. It helps you to receive a monthly pension, once you turn 58 you can claim your pension through EPFO.
Both employees and employers contribute 12% of the salary plus dearness allowance towards this pension scheme.

Bonus tip: Do you know? If you delay withdrawing your pension from 58 to 60 years, you get an extra 4% pension annually.

To have a secured future, retirement planning is very important. The employees pension scheme, 1995 is one of the most trusted pillars in the journey of retirement planning.

Think of EPS as your retirement savings plan where your monthly salary handles your present and the EPS scheme takes care of your future.

What is the Employee Pension Scheme(EPS)?

The government of India started the Employee Pension Scheme in 1995, which is currently managed by the Employee Provident Fund Organisation (EPFO). It is a scheme that ensures that you get a monthly pension after your retirement. It helps you to receive a monthly pension, once you turn 58 you can claim your pension through EPFO.

The employee and employer both contribute 12% of the basic salary. The entire contribution goes to the EPF while 8.33% of the employer's contribution goes to EPS.

Below list of people are covered under the Employee Pension Scheme:

All employees in factories and establishments.
Past members of the Family Pension Scheme, 1971.
Employees between 1 April 1993- 15 November 1995.
Membership continues until the age of 58 years.

All the above mentioned categories are covered under the scheme.

What are the benefits of the Employee Pension Scheme?

Below are some of the benefits of Employee Pension Scheme:

Benefits	Details
Superannuation Pension	It is provided to members who retire at the age of 58 with a minimum of 10 years of service.
Early Pension	This is available to members retiring between the age of 50 - 58 with at least 10 years of service.
Minimum Pension	In this a guaranteed minimum amount of ₹1,000 per month is provided.
Widow Pension	The widow is entitled to receive 50% of employees' pension of ₹450 per month, whichever is higher.
Children Pension	Each eligible child receives 25% of the widows pension.
Orphan Pension	Each orphan will receive 75% of the widows pension, for up to 2 children.
Permanent Disability	A monthly of ₹250 is provided to members who suffer permanent disability during their services.
Withdrawal Pension	This is applicable to employees who exit the scheme before completing 10 years of service.

Apart from the above benefits, it is important to have additional investments to ensure a secured retirement.

How to calculate your pension under EPS?

Your pension amount depends on your pensionable salary and the duration of employment. The pensionable service is calculated on the basis of 6 months. For example, if your service period is 6 years 2 months, the considered pensionable service is 6 years. However, if the service duration is 7 years 11 months, the pensionable service period is considered as 8 years. Below is the formula to calculate your pension under EPS:

Member’s monthly pension = (Pensionable salary x Pensionable service)/ 70

For example, I joined a company on 3 January 2026 with a salary of ₹ 15,000 per month. My actual salary for 28 working days might be ₹14,000. But for EPS, the full ₹15000 will be considered as the pensionable salary for January.

The maximum pensionable salary is capped at ₹ 15,000 per month. In this, the employer contributes 8.33% of the basic salary to the employees EPS account, the monthly deposit will be:

₹ 15000 x 8.33/100 = ₹ 1250.

So, ₹1250 will be the monthly deposit.

What are the types of pension forms under EPS in India?

Refer the below table to know the different types of pension forms under EPS :

Form	Purpose
Form 10C	This form is used to withdraw EPS funds before completing 10 years of service.
Form 10 D	This form is used to claim monthly pension after the age of 50 including widow pension, child pension etc.
Non remarriage certificate	This form declares that the widow has not remarried and is used for continuing the pension benefits.

Before applying for the EPS, make sure you have correct knowledge about the forms.

How to withdraw pension contributions online?

Below is the detailed guide on the steps on how to withdraw PF pension amount online:

Visit the official EPFO portal.
Click on the “for employees” option under the “services” tab.
Click on the “member UAN/online service” option.
Login using the UAN and password.
Click on the “online services” and then on the claim.
Select the appropriate form and proceed to fill it correctly.
Check the details and status of your employment.
Verify your bank details and click “yes” to sign the certificate.
Select the pension withdrawal mode.

Your pension withdrawal request will be placed once verification is done.

Conclusion:

The Employee Pension Scheme (EPS) introduced by the government helps you to build a secured retirement. Proactive financial planning helps you to have some funds available during emergencies and supports long term goals. The pension amount depends on the years of your service and contribution.

FAQs:

What is the eligibility to claim EPS?

Employee should be a member of EPFO. He should have completed 10 years of service and he has reached the age of 58.

How do we know employers' contribution to EPS?

You can check the employer’s contribution by checking the EPF member passbook.

What is an EPS scheme certificate?

EPS scheme certificate is a document that the employer receives after making a contribution to EPS for 10 years.

How could I know that my company is contributing towards the EPS and EPF scheme or not?

You can check the employer’s contribution by checking the EPF member passbook.

How can I apply for the Employee Pension Scheme?

If you fall into the eligibility category, you can apply for the EPS by filling out and submitting form 10D from the EPFP portal.