1. What is EPS – Employee Pension Scheme?
The Employee Pension Scheme (EPS-95) is a defined benefit pension scheme administered by EPFO. It was introduced on 16 November 1995 and provides a monthly pension to EPF members after retirement, as well as benefits to family members in case of the member's death or disability.
EPS runs parallel to your EPF account. While you, the employee, contribute 12% of your basic salary to EPF, a portion of your employer's 12% contribution — specifically 8.33% of your basic salary, capped at ₹1,250 per month — goes into your EPS account. The government also contributes 1.16% of salaries up to ₹15,000.
2. EPS Eligibility Criteria
| Eligibility Condition | Detail |
|---|---|
| Minimum service period | 10 years of contributory service (can be in multiple organisations) |
| Standard pension age | 58 years (full pension) |
| Early pension (reduced) | 50 years (with 4% reduction per year before 58) |
| Membership | Must be a registered EPF member with UAN |
| Contribution period | EPS contributions must have been made during service |
If you withdrew your EPS amount when leaving a job (using Form 10C), that service period is not counted towards your total pensionable service. This is a common and costly mistake many employees make.
3. EPS Pension Calculation Formula
Understanding the Formula Components
| Component | Definition | Current Limit |
|---|---|---|
| Pensionable Salary | Average basic salary + DA in the last 60 months before exit | Capped at ₹15,000/month |
| Pensionable Service | Total years of contributory EPS membership (across all employers) | Maximum 35 years |
| Divisor (70) | Fixed divisor under EPS-95 scheme | Fixed at 70 |
Service Weightage Bonus
If your pensionable service is 20 years or more, EPFO adds a bonus of 2 years to your total service for the purpose of pension calculation. So a member with 25 years of actual service gets calculated as 27 years.
Minimum Pension Guarantee
The Government of India provides a minimum pension guarantee of ₹1,000 per month. If the formula-derived pension is below ₹1,000, you still receive ₹1,000 per month.
4. Types of EPS Pension
Superannuation Pension
Standard monthly pension on retirement at age 58, with at least 10 years of service. Most common pension type.
Early Pension
Available from age 50 with 10+ years service. Reduced by 4% for each year below age 58. For age 55: 12% reduction.
Deferred Pension
If you delay pension start beyond 58, pension increases by 4% per year deferred (up to age 60).
Disablement Pension
Payable if a member becomes permanently disabled during service, regardless of years of service completed.
Widow / Widower Pension
Paid to the surviving spouse on the member's death. Equivalent to 50% of the member's pension (minimum ₹1,000).
Children Pension
Paid to dependent children up to age 25 on the member's death. 25% of widow pension, for up to 2 children.
Orphan Pension
Payable if both parents (member and spouse) are deceased, at 75% of widow pension rate, for up to 2 children.
Nominee Pension
Payable to nominated beneficiary if member has no family. Equivalent to widow pension rate.
5. How to Claim EPS Pension – Form 10D
When you reach age 58 (or 50 for early pension), you need to submit Form 10D to EPFO through your last employer to start receiving your monthly pension. This can also be done online through the member portal if your KYC is complete.
Online Claim Process (Recommended)
Log In to UAN Portal
Sign in at the EPFO member portal with your UAN and password.
Verify KYC
Ensure Aadhaar, PAN, and bank account KYC are approved under 'Manage → KYC'.
Go to Online Services → Claim
Click 'Online Services' and select 'Claim (Form-31, 19, 10C & 10D)'.
Verify Bank Account
Enter the last 4 digits of your bank account and verify.
Select 'Pension Withdrawal (Form 10D)'
Choose Form 10D from the claim dropdown for monthly pension.
Fill Details and Authenticate
Enter required details and authenticate using Aadhaar OTP to submit.
Documents Required for Pension Claim
- Form 10D (pension claim form) — auto-generated online or physically submitted
- Two passport-size photographs
- Bank account details (IFSC, account number)
- Age proof (Aadhaar, birth certificate)
- Service certificate from last employer
- Aadhaar card copy
- For early pension: declaration of non-employment
6. PPO Number & Status Check
A Pension Payment Order (PPO) is a unique reference number issued by EPFO when your pension claim is processed. It contains all pension details and is required for any pension-related correspondence with EPFO.
Your PPO number is a 12-digit number typically provided in the pension sanction letter sent by EPFO to your registered address.
How to Check PPO Status Online
Visit EPFO Pensioner Portal
Go to the EPFO pensioner portal and click 'Know Your PPO No.'
Enter Bank or PF Details
Enter your bank account number or PF member ID to retrieve your PPO number.
View Pension Details
Once your PPO is found, you can view your pension amount, start date, and payment history.
7. Annual Life Certificate (Jeevan Pramaan Patra)
Every EPS pensioner must submit an annual Life Certificate (Jeevan Pramaan Patra) to continue receiving their monthly pension without interruption. The certificate proves that you are alive and eligible to receive pension.
The deadline for submitting the life certificate is typically November 30 each year (with special windows extended for senior pensioners). Failure to submit within the deadline results in pension being stopped until the certificate is received.
How to Submit Life Certificate
| Method | How to Do It | Requirements |
|---|---|---|
| Jeevan Pramaan App | Use the mobile app with fingerprint/face authentication | Aadhaar-linked biometric phone |
| CSC / Common Service Centre | Visit nearest CSC with biometric device | Aadhaar card |
| Bank branch | Visit pension-disbursing bank branch | Passbook, PPO, Aadhaar |
| EPFO regional office | Submit physically with supporting documents | Passbook, PPO, Aadhaar |
| Doorstep banking | Bank representative visits home (for age 70+) | Request via bank |
Complete Guide: How to Submit Life Certificate for EPS Pensioners →
8. Family Pension Rules
On the death of an EPS member (whether during service or after retirement), surviving family members are entitled to a monthly family pension from EPFO.
Who is Eligible for Family Pension?
- Widow / Widower: Surviving spouse receives pension for life (or until remarriage, in the case of widow/widower under certain age conditions).
- Children: Up to 2 dependent children, up to age 25 (or until marriage for daughters). 25% of the widow pension rate each.
- Dependent parents: If no surviving spouse or children, dependent parents may be eligible.
- Nominees: If no eligible family members, the nominated beneficiary receives pension.
Family Pension Amount
The widow/widower pension is typically 50% of the member's pension, subject to a minimum of ₹1,000/month. The family pension continues as long as the eligible family member lives (or up to age 25 for children).
To claim family pension, the surviving family member must submit Form 10D along with the death certificate, relationship proof, and PPO number to the last employer or EPFO regional office.
9. What If Your Service is Less Than 10 Years?
If you have contributed to EPS but have less than 10 years of total pensionable service, you are not eligible for a monthly pension. Instead, you have two options:
| Option | What You Get | Form to Use | Best When |
|---|---|---|---|
| Withdrawal Benefit | Lump sum based on salary and years of service (as per EPS table) | Form 10C | You need money now and have less than 10 years service |
| Scheme Certificate | Certificate preserving your service record for future use | Form 10C (select scheme certificate) | You plan to re-join employment and want to accumulate service towards 10 years |
10. EPS Pension – Frequently Asked Questions
Can I withdraw my entire EPS amount as a lump sum?
No. EPS does not allow full lump sum withdrawal like EPF. If you have 10+ years of service, you can only receive a monthly pension (Form 10D). If you have less than 10 years, you can claim a withdrawal benefit (Form 10C) — but this is a partial amount based on a fixed table, not the full accumulated corpus.
What happens to EPS if I die before reaching retirement age?
Your family members (spouse, children, dependent parents) become eligible for family pension under EPS, regardless of how many years of service you had completed at the time of death.
Is EPS pension taxable?
Yes. EPS pension received monthly is taxable as income under "Income from Other Sources" or "Salaries" depending on the nature of employment. It is added to your total income and taxed according to your applicable income tax slab.
Can I nominate someone for EPS pension benefits?
Yes. You should update your nomination on the EPFO member portal under 'Manage → e-Nomination'. Having an updated nomination ensures your family members receive pension benefits smoothly without legal complications.
What is the difference between EPF and EPS?
EPF (Employees' Provident Fund) is a savings account that accumulates a lump sum for retirement — withdrawable as a full amount. EPS (Employee Pension Scheme) is a pension fund that provides a monthly income after retirement — it cannot be withdrawn as a lump sum (for 10+ years of service).