EPFO (Employees ‘Provident Fund Organization) is an important social security scheme under Employees’ Pension Scheme (EPS). The scheme provides pension to employees who have worked in the organized sector and have completed at least 10 years of service. After retirement, the scheme gives economic stability. If you have worked in a company for 10 years, then you become eligible for this pension. In this article, we will discuss in detail the calculation, eligibility, and other aspects related to EPS pension.
What is EPFO Pension Scheme?
EPFO Pension Scheme, called Employees’ Pension Scheme (EPS), began in 1995. Its objective is to provide financial security to the employees of the organized sector after retirement. To take advantage of pension under EPS, the employee should be a member of EPFO and should work for at least 10 years.
Overview of EPS Scheme
| Speciality | Description |
| Name of the scheme | Staff pension scheme (EPS) |
| Launch year | 1995 |
| Minimum service | 10 years |
| Age to start pension | 58 years |
| Minimum monthly pension | ₹ 1,000 per month |
| Maximum monthly pension | ₹ 7,500 per month |
| Contribution | 8.33% by employer |
EPS Pension Calculation Sources
EPS pension is calculated based on a certain formula:
Monthly Pension = Pensible Salary × Pensitive Service 70
Monthly Pension =
70
Painful Salary × Pensitive Service
- Painful Salary: Your last 60 months average salary.
- Painful service: Number of total years of job.
Example calculation
Suppose your last 60 months average salary is ₹ 15,000 and you have worked for 10 years:
Monthly Pension = 15,000 × 1070 = ₹ 2,143
Monthly Pension =
70
15,000 × 10
= ₹ 2,143
Thus, you will get a pension of ₹ 2,143 per month after retirement.
EPS Pension Eligibility Criteria
To avail the EPS pension, it is necessary to meet the following conditions:
- EPFO Membership: Employee should be a member of EPFO.
- Service period: The employee has done a job for at least 10 years.
- Age: Retirement age should be 58 years.
- Early Pension: If the employee is 50 years old but is under 58 years of age, he can take pension at a reduced rate.
Types of pension under EPS
Various types of pension are available under the EPS scheme:
- retirement pension:
This pension is given after retirement (58 years). - Early pension:
If the employee has completed the age of 50 years and has completed the service period, he can take pension at a reduced rate. Every year there is a 4% reduction in pension amount on age reduction. - Widow Pension:
On the death of the EPS member, his widow is given a monthly pension. - Baby Pension:
Along with widow pension, children are also given additional monthly pension (25%of widow pension). - Orphan Pension:
If the widow is not left, children are given monthly orphan pension (75%of widow pension).
Contribution to EPS
The contribution to EPS funds is as follows:
- The employee deposits 12% of his salary in the EPF account.
- The employer also deposits the same amount out of which 8.33% goes to the EPS account and the rest is deposited in the EPF.
How to check your EPS pension amount?
You can check your EPS amount in the following way:
- Go to the official website of EPFO.
- Login with your UAN and password.
- Download EPF Passbook and see EPS contribution to the final column.
Recent change in minimum pension amount
In 2025, the government has increased the minimum monthly pension from ₹ 1,000 to ₹ 3,000 to take into account inflation and increasing life expenses.
Revised minimum pension details
| Current minimum pension | Revised minimum pension | Beneficiaries |
| ₹ 1,000 per month | ₹ 3,000 per month | About 6 million EPFO members |
Important points to remember about EPS pension
- All contributions to the EPS account are made by the employer.
- The minimum service period should be 10 years.
- Early pension is cut by 4% on age decrease every year.
- 58 years have been set under the Retirement Age EPS scheme.
Disclaimer:
The EPS scheme is a fully real and government -recognized scheme. It provides financial security to the employees of the organized sector after retirement. However, the demand to increase the minimum monthly pension is still going on so that it can be made more effective.
EPS Scheme is an excellent option for those who have worked in the organized sector for a long time and want economic stability after retirement.
