EPS-95 Scheme : The Employees’ Pension Scheme (EPS-95), introduced in 1995 under the Employees’ Provident Fund Organization (EPFO), provides a monthly pension to retired employees in India. As lakhs of pensioners across the country await clarity on how much they will receive, this article breaks down the entire calculation method in detail — making it easier for you to understand your entitled pension.
What Is EPS-95? An Overview
EPS-95 is a social security scheme managed by the EPFO. It is designed to provide a guaranteed monthly pension to employees in the organized sector after retirement, disability, or to the family in case of the member’s death.
Key Features:
- Applicable to employees earning basic salary + DA up to ₹15,000/month (can opt-in above this limit voluntarily)
- Minimum service period required: 10 years
- Pension starts at age 58
- Lifelong pension guaranteed
- Widow/widower and children also eligible for family pension
Who Is Eligible for EPS-95 Pension?
Eligibility for EPS-95 depends on several criteria. Here’s who qualifies:
- Employees who have completed at least 10 years of service
- Those who have reached the age of 58 years
- Employees who contributed towards EPS-95 during their service
- Members who opted for higher pension contribution based on actual salary (post recent Supreme Court ruling)
EPS-95 Pension Calculation Formula
The pension amount under EPS-95 is calculated using a standard formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
- Pensionable Salary: Average of last 60 months’ basic + DA
- Pensionable Service: Total number of years contributed to EPS (max 35 years)
Example:
If your average salary is ₹15,000 and you have worked for 30 years: Pension = (15,000 × 30) ÷ 70 = ₹6,428/month
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EPS-95 Pension Amount Table (Standard ₹15,000 Salary)
| Years of Service | Monthly Pension |
|---|---|
| 10 Years | ₹2,143 |
| 15 Years | ₹3,214 |
| 20 Years | ₹4,286 |
| 25 Years | ₹5,357 |
| 30 Years | ₹6,428 |
| 33 Years | ₹7,071 |
| 35 Years | ₹7,500 |
Higher Pension on Actual Salary – Supreme Court Verdict
The Supreme Court verdict (Nov 2022) has allowed eligible employees to opt for pension based on actual salary, not just capped at ₹15,000/month. This can significantly increase your pension amount.
Higher Pension Calculation (Based on ₹30,000 Salary):
| Years of Service | Monthly Pension (New Rule) |
|---|---|
| 10 Years | ₹4,286 |
| 15 Years | ₹6,429 |
| 20 Years | ₹8,571 |
| 25 Years | ₹10,714 |
| 30 Years | ₹12,857 |
| 33 Years | ₹14,214 |
| 35 Years | ₹15,000+ (Capped) |
Important Note: Those who retired before Sept 1, 2014, may need to follow a separate application process for higher pension.
How to Apply for EPS-95 Pension
If you’re nearing retirement or planning to claim your EPS-95 pension, here’s how to proceed:
- Visit the official EPFO website
- Submit Form 10D for monthly pension
- Upload supporting documents: Aadhaar, bank details, service certificate
- For higher pension, use the joint option form with employer verification
- Track status via EPFO’s pension claim portal
Required Documents:
- UAN (Universal Account Number)
- Aadhaar card
- Bank passbook copy
- Employment/service certificate
- Passport-size photograph
Family Pension Under EPS-95
In case of the death of the pensioner, the following benefits are extended:
- Widow/Widower Pension: 50% of the pension amount
- Children Pension: 25% of the pension amount per child (max 2 children)
- Orphan Pension: Higher share in absence of spouse
Key Benefits of EPS-95 Pension Scheme
- Lifetime monthly income
- Nominal contribution (8.33% of employer’s PF contribution)
- Inflation-resistant option with possibility of higher payout
- Family protection through survivor pension
- Legal backing from Supreme Court for higher pension claims
FAQs – Your EPS-95 Pension Questions Answered
Q. What is the minimum pension under EPS-95?
A. Currently, the minimum pension is ₹1,000/month, though proposals are in place to increase it to ₹3,000/month.
Q. Can I get both EPF and EPS benefits?
A. Yes. EPF is a lump sum retirement fund, while EPS offers monthly pension.
Q. What if I work for less than 10 years?
A. You’ll get a withdrawal benefit, not a monthly pension.
Q. Is pension taxable?
A. Yes, EPS-95 pension is taxable under income tax laws.
The EPS-95 scheme ensures a safety net for employees post-retirement with guaranteed monthly income. Whether you receive ₹2,000 or ₹15,000 depends entirely on your salary history and service duration. With the latest Supreme Court judgment allowing higher contributions for a bigger pension, lakhs of pensioners now stand to benefit more than ever.
This article is for informational purposes only. Pension amounts may vary based on EPFO rules, updates, and individual eligibility. Always verify calculations and options directly with the EPFO or consult a financial advisor for guidance.
