EPS

EPS is the pension arm of India's Employees' Provident Fund system, providing a monthly pension after retirement to employees who complete at least 10 years of eligible service. Unlike your EPF balance, which you can withdraw as a lump sum, EPS pays out as a fixed monthly pension for life.

The employer's 12% EPF contribution is split: 8.33% of pensionable salary (subject to a wage ceiling) goes into the EPS pool, and the remainder goes to your EPF account. Your own 12% contribution goes entirely to EPF, none of it touches EPS. The EPF Calculator shows how the employer contribution divides between the two.

Monthly Pension = (Pensionable Salary × Pensionable Service) / 70

Pensionable salary is the average monthly salary over the last several years of service, capped at a government-set ceiling regardless of your actual pay.

An employee retires with a pensionable salary of ₹15,000 (the ceiling) and 25 years of pensionable service.

• Monthly pension: (₹15,000 × 25) / 70 = ₹5,357 per month

Because pensionable salary is capped, an employee earning ₹80,000 a month gets the same EPS pension calculation as one earning ₹15,000, assuming equal years of service, the cap limits the pension regardless of actual income.

• 10 years of service is the eligibility threshold. Fall short of that and you can withdraw your EPS contribution as a lump sum instead of receiving a pension, subject to specific withdrawal rules.
• Pensionable salary is capped, unlike your actual salary. High earners don't get a proportionally higher EPS pension, the ceiling limits the calculation regardless of real income.
• Early pension is available from age 50, at a discount. Opting in before 58 reduces your monthly pension amount by roughly 4% for each year short of 58.
• EPS is entirely employer-funded. Your own EPF contribution never touches the pension pool, only the employer's share does.
• UAN carries your EPS service record across employers. Job changes don't reset your years of eligible service as long as accounts are properly linked.