 "EPF Scheme 2026: How much monthly EPS pension will you get after 10, 15 and 20 years of service? Calculation explained")
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New Delhi: The government has rolled out the Employees' Provident Funds Scheme, 2026, under the Code on Social Security, 2020. The new scheme replaces two significant schemes, EPS-1995 and Employees’ Family Pension Scheme, 1971. The new scheme works to provide a monthly pension to the employees on completion of at least 10 years of service.
Due to the launch of the Employees' Provident Funds Scheme, 2026, several employees are now wondering if the process used to calculate the monthly EPS pension has changed or if they would receive a higher pension after completing 10-25 years of service under the new scheme.
The Employees' Pension Scheme provides pensionary benefits to eligible employees of establishments. It ensures monthly pension on superannuation, early retirement, permanent disability and offers family pension in case of the death of the member. Employers contribute 8.33 percent of wages and the central government contributes 1.16 percent, subject to wage ceiling, towards the Pension Fund. Members with minimum 10 years of eligible service are entitled to pension.
Membership is compulsory for eligible employees and continues until 58 years, death or pension settlement.
Pensions will be continued to be disbursed monthly to eligible members or beneficiaries. The pension will continue to include superannuation pension, early pension, family pension, orphan/widow pension and disablement pension.
The EPS pension will be calculated at a wage ceiling of Rs 15,000. According to the Employees' Pension Scheme, for employees earning up to Rs 15,000 per month and contributing under EPF for a minimum period, the pensionable salary for EPS pension calculation will be considered as Rs 15,000.
Every EPS subscriber receives a minimum monthly pension of Rs 1,000 even if their calculated pension as per their basic pay and service years is less than Rs 1,000. These conditions apply to the EPS 2026 scheme as well.
According to the EPS 2026 scheme notification, the pension calculation formula remains the same.
The EPS pension calculation formula is: Pension= (Pensionable Salary (average of last 60 months) X Pensionable Service)/70.
How much monthly EPS pension will members get on completion of 10-25 years of service?
Here's a calculation of the estimated monthly EPS pension a member will get at basic salaries of Rs 10,000-15,000 and with 10-25 service years.
At an average basic pay of Rs 10,000, the estimated monthly EPS pension will be Rs 1,429
At an average basic pay of Rs 15,000, the estimated monthly EPS pension will be Rs 2,143
At an average basic pay of Rs 10,000, the estimated monthly EPS pension will be Rs 2,143
At an average basic pay of Rs 15,000, the estimated monthly EPS pension will be Rs 3,214
With a 2 year bonus, the service years are counted as 22 years.
At an average basic pay of Rs 10,000, the estimated monthly EPS pension will be Rs 3,143
At an average basic pay of Rs 15,000, the estimated monthly EPS pension will be Rs 4,714
With a 2 year bonus, the service years are counted as 27 years.
At an average basic pay of Rs 10,000, the estimated monthly EPS pension will be Rs 3,857
At an average basic pay of Rs 15,000, the estimated monthly EPS pension will be Rs 5,786
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