EPS pension eligibility: Is EPS membership mandatory for you if your wages are Rs 25,000+? Check status

The government has increased the Employees’ Provident Fund (EPF) wage ceiling from Rs 15,000 to Rs 25,000 per month. This means that employees earning wages (basic pay plus dearness allowance) up to Rs 25,000 per month will now be mandatorily required to become members of the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance (EDLI) scheme. For those who will become part of the EPS scheme, their employers will contribute to their EPS fund.

When is EPS membership mandatory?

For employees whose monthly wages are Rs 25,000 or less, EPS membership is mandatory, subject to the applicable eligibility conditions. In such cases, the employer has to make the prescribed pension contribution to the employee’s EPS fund.

What if your monthly wages are more than Rs 25,000?

However, employees earning more than Rs 25,000 a month need to look at their existing EPS membership status. If an employee is earning more than Rs 25,000 in monthly wages and they are already an EPS member, their EPS membership will be continued. However, if someone is earning Rs 25,000 and was not an EPS member earlier, they don’t need to join the EPS scheme.

If you are already an EPS member, you should also check your salary slips and EPF passbook to make sure that your employer is making EPS contributions to your EPS account.

Also read: EPS pension benefit: Basic salary up to Rs 25,000 but no employer EPS contribution? Here’s where to complain

What should you do if your employer’s EPS contribution is missing?

If you are an eligible EPS member and your employer’s EPS contribution is missing, you should first contact the employer and inform them about the missing contribution. If the issue is not resolved, you can raise a grievance through the EPFiGMS portal.

What if EPS money was deducted when it should not have been?

If you are not eligible for EPS and see that an EPS contribution is being made, then contact your employer. If the issue is not resolved, you can raise a grievance through the EPFiGMS portal.

If there is a mismatch in EPS contribution, employees should first approach their employer and raise a grievance through the EPFiGMS portal.

How is the EPS pension amount calculated?

EPS pension= (Pensionable salary (average of last 60 months) X Pensionable Service)/70.

Will the revised ceiling increase PF accumulation for members?

Yes, for employees in the bracket of Rs 15,000- Rs 25,000, or where the employee was earning more than Rs 25,000 but contributing at the Rs 15,000 wage ceiling. This can result in higher EPF accumulation. The actual amount depends on the wage on which EPF contributions are being made.

Will employees earning between Rs 15,000 and Rs 25,000 become eligible for EPFO coverage?

Yes. The principal effect of the revision is to extend the mandatory coverage threshold from Rs 15,000 to Rs 25,000 per month, bringing eligible employees in this wage range within the expanded statutory coverage. For example, an employee joining today at a monthly wage of Rs 20,000 is currently outside the EPF and EPS systems; under the revised ceiling, such an employee would be required to be enrolled in both, creating a more robust social security safety net for the employee and their family.