EPS pension on Rs 15,000 pensionable salary and 10 years of service works out to about Rs 2,143 a month

The Employees' Pension Scheme (EPS) matters greatly to private-sector employees who have PF deducted from their salary every month. Many wonder how much pension they will get each month after retirement. If pensionable salary is taken as Rs 15,000 and eligible service as 10 years, the monthly pension works out to about Rs 2,143 under the formula given.

However, the claim that EPS 2026 has come into force, and the information about a change in the wage ceiling, should first be checked against the official notification.

To receive a monthly pension under EPS, one must complete at least 10 years of eligible service. The regular monthly pension generally starts after the age of 58 is completed.

When changing jobs, employees should make sure the EPF and EPS service entries from the previous job have been properly linked. Eligible service need not be with a single company. Even so, the service and contribution entries that will be counted for pension should be checked regularly.

The pension is calculated using this formula: monthly pension = (pensionable salary x pensionable service) / 70. Pensionable salary is generally worked out on the average salary of the last 60 months before retirement. In the actual calculation, the applicable wage ceiling and the scheme's rules are important.

Taking pensionable salary as Rs 15,000, the approximate monthly pension comes to Rs 2,143 for 10 years of service, Rs 3,214 for 15 years, Rs 4,286 for 20 years and Rs 6,429 for 30 years. These figures are examples derived from the formula. The actual pension may differ depending on eligible service, admissible salary and the rules in force.

The Centre has announced a decision to raise the wage ceiling for mandatory coverage under the EPFO from Rs 15,000 to Rs 25,000 a month from September 17, 2026. The aim is to bring about 51 lakh more employees under the umbrella of social security.

But a coverage ceiling of Rs 25,000 does not mean that the ceiling for calculating EPS pension has automatically become Rs 25,000 too. According to the official information available, there are separate rules on the Rs 15,000 ceiling in the EPS pension calculation. Eligibility and the actual pension should therefore be checked against the official notification.

To check their own pension, people can visit the official EPFO website, EPFO India, and look at the official calculator or the relevant service available for pension calculation. Eligibility should be verified on the basis of the UAN, the period of employment and the contribution entries. Those with any doubt should contact an EPFO office.

Looking only at the current salary is not enough when estimating a pension. Pensionable salary, years of eligible service and the applicable rules all matter. It is said that EPS 2026 has replaced the older EPS 1995 scheme, but this claim should not be treated as firm information without checking it against the official notification.