EPS pension: Check how much monthly pension you can get after 10–25 years of service under EPS 2026

The central government has rolled out the Employees’ Pension Scheme (EPS), 2026. The new scheme comes under the Code on Social Security, 2020, and replaces two important schemes- EPS-1995 and Employees’ Family Pension Scheme, 1971. While the key purpose of the new scheme is to provide a monthly pension to its subscribers on completion of at least 10 years of service, the big question is- has it changed the way monthly EPS pension will be calculated? Will employees get a higher pension under the new scheme if they have completed 10-25 years of service?

Will EPS pension be calculated at a different wage ceiling in the EPS 2026 scheme?

No! The EPS pension will be calculated at a wage ceiling of Rs 15,000 if you have not taken approval and contributed to the EPS on a higher basic salary. Most of the EPF members go for an EPS contribution only up to the wage ceiling despite a higher basic salary. It means even if your basic salary and dearness allowance (DA) is Rs 25,000, your pensionable salary for EPS pension calculation will be considered as Rs 15,000.


Also Read: EPF vs VPF under new EPF Scheme 2026: Here's how employee and employer contributions will work

Every EPS subscriber is assured of a minimum monthly pension Rs 1,000 even if their calculated pension as per their basic pay and service years is less than Rs 1,000.

These conditions remain the same under the EPS 2026 scheme as well.

The EPS pension amount is calculated as per a formula.

Has EPS pension calculation formula changed under the EPS 2026 scheme?

No! According to the EPS 2026 scheme notification, the pension calculation formula remains the same.

The EPS pension formula is-

Monthly EPS 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.

Also Read: Waiver of recovery of excess amount paid to central government employees: Finance Ministry to examine proposal to simplify the process


What can be your estimated monthly EPS pension on completion of 10-25 years of service?

Let’s calculate the estimated monthly EPS pension at basic salaries of Rs 10,000-15,000 and 10-25 service years.

Monthly EPS pension at 10 years of service (Rs 10,000-Rs 15,000 pensionable salary)

Average basic pay	Service years	Estimated monthly EPS pension
₹ 10,000	10	₹ 1,429
₹ 11,000	10	₹ 1,571
₹ 12,000	10	₹ 1,714
₹ 13,000	10	₹ 1,857
₹ 14,000	10	₹ 2,000
₹ 15,000	10	₹ 2,143

Monthly EPS pension at 15 years of service (Rs 10,000-Rs 15,000 pensionable salary)

Average basic pay	Service years	Estimated monthly EPS pension
₹ 10,000	15	₹ 2,143
₹ 11,000	15	₹ 2,357
₹ 12,000	15	₹ 2,571
₹ 13,000	15	₹ 2,786
₹ 14,000	15	₹ 3,000
₹ 15,000	15	₹ 3,214

Monthly EPS pension at 20 years of service (Rs 10,000-Rs 15,000 pensionable salary)

At this stage, another important EPFO rule about service years will apply. According to this rule, if the service years of an employee are 20 or more, they get a 2-year bonus. It means, if someone has completed 20 years of service, their service years for EPS pension calculation will be counted as 22 years. Similarly, if service years are 25, they will be counted as 27.

Average basic pay	Service years	Estimated monthly EPS pension
₹ 10,000	22	₹ 3,143
₹ 11,000	22	₹ 3,457
₹ 12,000	22	₹ 3,771
₹ 13,000	22	₹ 4,086
₹ 14,000	22	₹ 4,400
₹ 15,000	22	₹ 4,714

Monthly EPS pension at 25 years of service (Rs 10,000-Rs 15,000 pensionable salary)

If service years are 25, they will be counted as 27 as 2 bonus years will be added.

Average basic pay	Service years	Estimated monthly EPS pension
₹ 10,000	27	₹ 3,857
₹ 11,000	27	₹ 4,243
₹ 12,000	27	₹ 4,629
₹ 13,000	27	₹ 5,014
₹ 14,000	27	₹ 5,400
₹ 15,000	27	₹ 5,786