The Central Government’s Employees’ Pension Scheme (EPS) is the retirement pension for employees of the organised sector. It is run by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment. From 17 September 2026 the wage ceiling rose from ₹15,000 to ₹25,000 a month — bringing about 51 lakh more employees under EPFO cover. The minimum pension is ₹1,000 a month; the formula is pensionable salary × pensionable service ÷ 70.
How the wage ceiling became ₹25,000 in 2026
The Central Government raised the EPFO mandatory coverage wage ceiling from ₹15,000 to ₹25,000 a month with effect from 17 September 2026 — through Gazette Notification S.O. 5109(E). The earlier ceiling had been in force since September 2014. Now employees earning ₹15,000–₹25,000 also come compulsorily under EPF, EPS and EDLI. The employee’s and employer’s 12% contributions now apply on wages up to ₹25,000 — of the employer’s share, 8.33% goes to EPS and 3.67% to EPF. The EDLI life insurance cover is up to ₹7 lakh.
How the pension is calculated
The EPS pension formula is: pensionable salary × pensionable service (years) ÷ 70. The pensionable salary is the average monthly pay of the last 60 months. At least 10 years of service is needed for a monthly pension — less service gives a withdrawal benefit. The pension age is 58 years; early pension from 50 years carries a 4% cut for every year before 58. The minimum pension is ₹1,000 a month (since 1 September 2014), and there is a provision for family pension.
Higher pension and the ₹7,500 demand — what is true
The Supreme Court, in its judgment of 4 November 2022 (EPFO v Sunil Kumar B), upheld the 2014 amendment and allowed employees who were members on 1 September 2014 to opt for a higher pension on actual salary through a joint option — the window to opt has now closed. The ₹7,500 minimum pension is a demand of trade unions (such as BMS) — it has not been approved. In June 2026, the EPS 2026 notification replaced the old EPS-95 — the new rules run under the Code on Social Security 2020. The higher ceiling does not automatically raise the pension of existing pensioners.
How to check your pension
Check your EPS details on the EPFO portal (epfindia.gov.in) with your UAN — the passbook shows the EPF and EPS contributions. Keep your UAN, Aadhaar and bank account ready for a pension claim; check the latest forms on the EPFO website — never pay anyone for a pension claim. Also ask your employer whether your EPS contribution is being deposited correctly. If you have newly come under cover from 17 September 2026, confirm your enrolment with your employer.
Frequently Asked Questions
Q1: What is the minimum pension under EPS? A: ₹1,000 a month — in force since 1 September 2014.
Q2: What is the pension formula? A: Pensionable salary × pensionable service (years) ÷ 70.
Q3: What changed in the wage ceiling in 2026? A: From 17 September 2026, the ceiling rose from ₹15,000 to ₹25,000 a month.
Q4: Has the ₹7,500 minimum pension been approved? A: No — it is a demand of trade unions and has not been approved yet.
Useful links
- EPFO Portal: https://www.epfindia.gov.in/
- Employees’ Pension Scheme on MyScheme: https://www.myscheme.gov.in/schemes/eps
- Next Action: see all 726 Central Government schemes — https://www.viksitharyana.com/english/kendra-sarkar-ki-yojnayen-2/
