EPS-95 or Employees’ Pension Scheme 1995 is a government-backed pension scheme managed by the Employees’ Provident Fund Organisation (EPFO). It is aimed at providing monthly financial support to retired employees who have worked in the organized sector. The pension under this scheme begins at the age of 58 and is a helpful source of income during retirement.
Eligibility for EPS-95 Pension
To get benefits under the EPS-95 scheme, you must meet certain conditions:
You must have worked for at least 10 years under the EPF scheme.
You should retire at the age of 58 or older.
You can also start receiving a reduced pension from age 50 onwards, with a 4% reduction per year before turning 58.
You must be a regular EPF contributor with pension contributions in your account.
Who is Not Eligible?
If you have less than 10 years of service, you are not eligible.
If you withdrew pension funds before completing service, you will not qualify.
Employees who joined after 2004 with salaries over ₹15,000/month are not covered, unless they opted in voluntarily.
How EPS-95 Pension is Calculated
The pension you receive under EPS-95 depends on your salary and how many years you have worked.
The formula is:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Where:
Pensionable Salary = Average of the last 60 months’ salary (capped at ₹15,000 unless you opted for higher pension)
Pensionable Service = Total years you contributed to EPS
Here are some examples:
| Salary (₹) | Years of Service | Pensionable Salary | Monthly Pension (₹) |
|---|---|---|---|
| 12,000 | 10 | 12,000 | 1,714 |
| 15,000 | 20 | 15,000 | 4,285 |
| 25,000 | 30 | 15,000 (capped) | 6,428 |
| 10,000 | 15 | 10,000 | 2,142 |
| 15,000 | 35 | 15,000 | 7,500 (Max possible) |
If your salary is higher but you didn’t opt for higher pension, it will still be capped at ₹15,000 for calculation purposes.
Recent Update: Higher Pension Option Allowed
In 2022, the Supreme Court allowed certain EPS subscribers to opt for higher pension based on their actual salary, not just the ₹15,000 cap. EPFO then gave an option to apply for this benefit.
Who Can Opt for Higher Pension?
You must have been an EPF member before September 1, 2014.
You should have been contributing to EPF and EPS based on your actual salary.
A joint application with your employer must have been filed before the deadline.
Impact of Higher Pension
Here is how the pension can increase under this option:
| Actual Monthly Salary | Years of Service | Revised Monthly Pension (₹) |
|---|---|---|
| 25,000 | 25 | 8,928 |
| 30,000 | 30 | 12,857 |
| 35,000 | 30 | 15,000 (Max allowed) |
| 40,000 | 35 | 20,000 (needs EPFO approval) |
This higher pension amount depends on EPFO verification and employer contribution matching.
How to Check Your EPS Pension Online
EPFO has made it easy to check your pension status online. Here’s how:
Visit the EPFO Pensioner’s Portal
Log in using your PPO number and bank details
Use the Pension Calculator to estimate your monthly pension
Download the e-PPO to see your full pension history
Steps to Claim EPS-95 Pension After Retirement
If you’re retiring and want to start receiving your EPS pension, follow these steps:
Submit Form 10D either at your workplace or EPFO office.
Make sure your KYC documents (Aadhaar, PAN, bank account) are updated.
Keep your salary slips and EPF passbook ready.
Track your pension status on the UAN portal or EPFO app.
Timeline for Pension Processing:
| Step | Approximate Time |
|---|---|
| Document Submission | 1–2 Weeks |
| EPFO Processing & Verification | 2–4 Weeks |
| PPO Generation & Pension Start | 4–6 Weeks |
Frequently Asked Questions (FAQs)
Is EPS-95 pension taxable?
Yes, it is taxable under “Income from Other Sources.”Can I get pension before age 58?
Yes, but at a 4% reduced rate per year before 58.What happens if I die before starting pension?
A family pension is given to your spouse or dependents.What if pension is not credited?
You can file a complaint on the EPFiGMS (EPFO grievance portal).How to get duplicate PPO?
Apply via EPFO office or grievance portal.
Conclusion
The EPS-95 scheme is a vital support system for millions of retired workers in India. With new options for higher pension based on actual salary, many retirees can now get better financial security. To ensure you receive the right amount, always keep your EPF records, salary slips, and KYC documents updated. Use EPFO’s digital tools to check your status, and apply for benefits well in advance of retirement.