EPS 2026 vs EPS-95: Key changes in minimum pension, eligibility and contributions explained

The government has notified the Employees' Pension Scheme (EPS), 2026 under the Code on Social Security, 2020, replacing the EPS, 1995 and Employees' Family Pension Scheme, 1971. However, the minimum monthly EPS pension remains unchanged at Rs 1,000, the same amount that has been in force since September 1, 2014.

No. The pension calculation formula remains unchanged under EPS-2026. Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Pensionable salary will continue to be the average monthly salary drawn during the last 60 months before exiting the pension fund.

The new EPS scheme covers employees who become members of the EPF Scheme, 2026, whose wages are within the notified wage ceiling, as well as existing members of EPS, 1995 and the Employees' Family Pension Scheme, 1971. A member continues to remain covered until reaching the age of superannuation, withdrawing benefits, receiving pension or in the event of death.

The contribution pattern remains largely unchanged. The employer continues to contribute 8.33% of wages (up to the notified wage ceiling) to the pension fund, while the central government contributes 1.16% of pay, subject to the notified wage ceiling.
For members who exercised the higher pension joint option under the earlier EPS-1995 scheme, the employer's contribution on wages above Rs 15,000 will continue as provided under the scheme.

The Employees' Pension Scheme, 2026, replaces the Employees' Pension Scheme, 1995 and the Employees' Family Pension Scheme, 1971. However, the government has clarified that pensions already sanctioned under the earlier schemes will continue without interruption, and existing pensioners will continue to receive their benefits.

Members with less than 10 years of eligible service will continue to have two options. They can either receive a withdrawal benefit or obtain a Scheme Certificate, which allows their past service to be added if they later join another establishment covered under the EPF.

While many provisions remain unchanged, the new scheme introduces several changes, including:
-Pension claims to be settled within 20 days
-12% interest on delayed pension claims
-Higher pension provisions incorporated into the scheme
-Digital compliance requirements for employers
-Scheme renamed from Employees' Pension Scheme, 1995 to Employees' Pension Scheme, 2026