The Employee Pension Scheme 1995 (EPS-95) is a social security scheme run by the Employees’ Provident Fund Organisation (EPFO) that provides monthly pension to over 78 lakh pensioners across India. Recently, the Supreme Court’s landmark verdict on higher pension has brought EPS-95 into the spotlight, with millions of employees applying for enhanced pension based on actual salary. Here’s everything you need to know about EPS-95 in 2026.
What Is EPS-95 (Employee Pension Scheme)?
EPS-95 is a pension scheme established under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. When an employer contributes 12% of an employee’s basic salary to EPF, 8.33% of that goes to EPS (subject to a salary ceiling) and the remaining 3.67% goes to the EPF account. The government also contributes 1.16% of the employee’s basic salary to the scheme. After completing 10 years of eligible service and reaching age 58, employees receive a monthly pension for life.
EPS-95 Eligibility Criteria
To be eligible for EPS-95 pension, you must meet these conditions: you must be an EPF member (salaried employee with basic salary up to ₹15,000/month for mandatory membership), you need a minimum of 10 years of eligible service, and you must have reached 58 years of age for full pension (or 50 for early pension with a 4% reduction per year). Employees who leave service before completing 10 years can withdraw their EPS accumulation as a lump sum.
EPS-95 Pension Calculation Formula
The basic EPS pension formula is: Monthly Pension = (Pensionable Salary × Pensionable Service) / 70
Where Pensionable Salary is the average monthly salary of the last 60 months of service (previously 12 months, changed in 2014), and Pensionable Service is the total years of EPS membership (maximum 35 years, with 2 bonus years added if service exceeds 20 years).
Example Calculation (Standard Pension)
If your average salary for the last 5 years is ₹15,000 (the wage ceiling) and you have 30 years of service (plus 2 bonus years = 32): Monthly Pension = (15,000 × 32) / 70 = ₹6,857/month. This is the maximum pension under the capped salary of ₹15,000.
Higher Pension Under EPS-95 – Supreme Court Verdict
In November 2022, the Supreme Court upheld the right of employees to opt for higher pension based on actual salary (exceeding the ₹15,000 ceiling). Following this verdict, EPFO launched an online portal for employees and pensioners to apply for higher pension. The deadline for applications has been extended multiple times, with the latest window closing in 2025.
Who Is Eligible for Higher Pension?
You may be eligible for higher pension if you were an EPF member as of September 1, 2014 (when the wage ceiling was raised to ₹15,000), and your actual basic salary exceeded the prevailing wage ceiling. Both existing pensioners and current employees who jointly opted (with employer) for higher EPS contribution can apply.
How Much Higher Pension Can You Get?
Under higher pension, the pensionable salary is based on your actual last 60 months’ average salary instead of the capped ₹15,000. For example, if your actual average salary was ₹50,000 with 30 years of service (plus 2 bonus): Monthly Pension = (50,000 × 32) / 70 = ₹22,857/month — significantly higher than the standard ₹6,857.
However, you’ll need to transfer the difference in EPF contributions to EPS, which reduces your EPF lump sum at retirement. The EPFO calculates a cost-benefit analysis for each applicant.
Types of EPS-95 Pension
| Pension Type | Eligibility | Amount |
|---|---|---|
| Superannuation Pension | Age 58, min 10 years service | Formula-based |
| Early Pension | Age 50-57, min 10 years | Reduced by 4%/year before 58 |
| Widow/Widower Pension | Spouse of deceased member | 50% of member’s pension |
| Children Pension | Children of deceased member | 25% each (max 2 children) |
| Orphan Pension | Orphaned children | 75% each (max 2 children) |
| Disability Pension | Permanent disability during service | Full pension regardless of service |
| Nominee Pension | If no family exists | As per nomination |
Minimum Pension Under EPS-95
The government set a minimum pension of ₹1,000/month under EPS-95 in 2014. There have been persistent demands from pensioners’ unions to raise it to ₹7,500/month, and various parliamentary committees have recommended an increase. As of 2026, the minimum pension remains at ₹1,000, though the government has indicated it is reviewing the matter.
How to Check Your EPS Pension Status
You can check your EPS pension details through the EPFO member portal at unifiedportal-mem.epfindia.gov.in. Log in with your UAN and password, navigate to the “Passbook” section to see your EPS contributions, or use the “Pension on Higher Wages” section to check the status of higher pension applications. You can also track pension credit through your bank’s passbook or statement.
Frequently Asked Questions
What is the maximum EPS-95 pension possible?
Under the standard ₹15,000 wage ceiling, the maximum pension is approximately ₹7,500/month (with 35 years of service plus 2 bonus years). Under the higher pension option based on actual salary, there is no upper limit — it depends on your actual average salary and years of service.
Can I get both EPF and EPS benefits?
Yes. EPF gives you a lump sum at retirement (your 3.67% contribution + interest), while EPS provides a monthly pension. They serve different purposes — EPF is a retirement corpus and EPS is a regular income stream.
What if I have less than 10 years of service?
If you have less than 10 years of EPS service, you’re not eligible for pension. Instead, you can withdraw the EPS accumulation as a lump sum when leaving employment, or you can get a “scheme certificate” to carry forward your EPS service to a new employer.
Is EPS-95 pension taxable?
Yes, EPS pension is fully taxable as income from salary under the Income Tax Act. However, standard deduction of ₹75,000 (from FY 2024-25 onwards) is available for pensioners under the new tax regime.