What is EPS-95 Pension Scheme under EPFO? Check eligibility, benefits and math behind the scheme


EPS-95 – Employee Pension Scheme-1995 is a social security scheme provided by the Employees’ Provident Fund Organisation (EPFO). Under this scheme, employees working in the organised sector can get a pension after their retirement at the age of 58 years.

To avail benefits of the scheme, an employee should have completed a service for at least 10 years, which does not have to be continuous service. This scheme was launched in 1995.

In this scheme, a fixed minimum pension of between Rs 1000 – Rs 2000 can be availed every month. Besides, it has many other facilities that can be availed. In this regard, EPFO – a retirement fund body – explains the EPS-95 benefits, eligibility that are available to both existing and new members.

Who Can Avail This Scheme?

Members will get pension on retirement at the age of 58

Premature member pension before the age of 50 years in case of unemployment

Disability pension in case of permanent and total disablement of the member during service

Widow/widower pension on death of member (including first proviso to para 12(8)) or pensioner

Child pension for 2 children at a time up to the age of 25 years on death of the member/pensioner

Orphan pension to 2 orphans at a time up to the age of 25 years on death of a member or pensioner or death of a spouse

Disabled Child / Orphan Pension for whole life of disabled child / orphan child

Nominee pension on death of the member and in case of no family as defined under the Employees’ Pension Scheme 1995 is paid by the member to a person duly nominated for life

Pension to dependent father or mother on death of a member, provided the member has no family or nominee

How to Calculate Your Pension Under EPS

The pension amount in EPF depends on the pensionable salary of the member and the pensionable service. The member’s monthly pension amount is calculated as per the following formula:

Member’s Monthly Pension = Pensionable salary X Pensionable service / 100

For e.g. If an employee in organised sector draws a salary of Rs 15,000 per month. Since the employer contributes 8.33 per cent of this salary to the employee’s EPS account, the amount deposited in the EPS account of the employee every month shall be

Rs 15000 x 8.33/100 = Rs 1250 – this means an employee can get around Rs 1250 per month under the employee pension scheme.





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