3 weeks ago
EPFO Employee Pension Scheme: EPS 1995 Benefits, Payout Formula Explained
A pension is money you get every month after you stop working.
In India, a government agency called the EPFO runs a pension plan called EPS 1995 for workers.
A worker usually needs to be part of the plan for about 10 years to get a pension.
While you work, your employer puts some money into the pension fund, and the government adds a little too.
When you turn 58, you can start receiving your monthly pension.
How much you get depends on your salary and how many years you worked.
For example, someone who worked 35 years could get around ₹7,500 every month.
You can also start getting a smaller pension as early as age 50.
Each year you must show you are still alive, which you can now do digitally with your Aadhaar card.
EPFO's Employees' Pension Scheme 1995 provides monthly pension to eligible subscribers who have contributed for a minimum period, generally 10 years of service.
Employers contribute 8.33% of wages and the Centre contributes 1.16% towards the pension fund, subject to the wage ceiling.
Pension is calculated using the formula: (Pensionable Salary, the average of the last 60 months, x Pensionable Service) / 70.
Members can draw a reduced pension from age 50, or delay settlement to age 60 by pausing or continuing contributions.
Pensioners must submit a life/non-remarriage certificate after 12 months, and a Digital Life Certificate can be filed using Aadhaar since FY16.
- Who
- Employees covered under EPFO's Employees' Pension Scheme 1995, with employers responsible for enrolling members and depositing contributions.
- What
- An explanation of EPS 1995 benefits, pension payout calculation formula, rules, and frequently asked questions.
- Where
- India, where the EPFO administers the scheme through banks, post offices, Common Service Centers, and PF offices.
- When
- Under the Employees' Pension Scheme 1995, with pension generally payable at age 58 and Digital Life Certificates available since FY 2016.
- Why
- To help eligible members understand how their pension is calculated and how benefits such as family, disability, and survivor pensions work.
Key facts
- Scheme
- Employees' Pension Scheme 1995 (EPS 1995)
- Administering body
- Employees' Provident Fund Organisation (EPFO)
- Employer contribution
- 8.33% of wages
- Centre contribution
- 1.16% of wages
- Pension formula
- (Pensionable Salary x Pensionable Service) / 70
- Wage ceiling
- ₹15,000 per month
- Pension age
- 58 years; reduced pension from age 50
- Minimum service
- 10 years (disability pension exempt)










