How Much Pension Will You Get Under EPS 95 Scheme 2025? Calculate Your EPS Pension, Eligibility, Contributions

The Employees' Pension Scheme (EPS) is a retirement benefit program designed to provide organised sector employees with a regular monthly pension after they retire. Primarily funded by employers, the scheme ensures financial security for workers post-retirement and also extends benefits in cases of disability or the death of a member, offering family pensions or disability pensions as applicable.

EPS is part of the broader Employees' Provident Fund Organisation (EPFO) framework, which aims to support employees in India's organised sector.

Understand EPS Contributions: Employee, Employer and Government Share

Both employees and employers contribute 12 percent of the basic salary plus dearness allowance (DA) to the Employees' Provident Fund (EPF). Out of the employer's share, 8.33 percent-capped at Rs 1,250 per month-goes into the EPS account.

Who is Eligible for EPS Pension?

Additionally, the government contributes 1.16 percent, up to Rs 174, for employees earning a monthly salary of up to Rs 15,000. To qualify for a pension under EPS, an individual must be a registered EPFO member, have contributed to EPS for a minimum of 10 years and reach the age of 58 to receive the full pension. Early pension can be availed from the age of 50, but the pension amount is reduced by 4 percent for each year prior to 58.

How To Calculate EPS 95 Pension After Hike; Know Formula

The EPS pension amount is calculated using a specific formula: Pension = (Average Salary × Pensionable Service) ÷ 70. The average salary is calculated based on the basic pay plus DA of the last 60 months of service, with a maximum salary cap of Rs 15,000 per month. Pensionable service accounts for the total number of years worked under EPS, with a maximum of 35 years considered.

Employees with more than 20 years of service are given an additional two years added to their service for pension calculation purposes. The scheme provides a minimum monthly pension of Rs 1,000 and a maximum of Rs 7,500, ensuring a stable source of income for retired workers.