PF Pension (EPS): Definition, Meaning & Guide for Indian Businesses

EPS (Employees' Pension Scheme) is the pension component of EPF. Of employer's 12%, 8.33% goes to EPS (max ₹1,250 on ₹15K ceiling). Members get pension after 58.

What is PF Pension (EPS)?

Employees' Pension Scheme (EPS) is a defined benefit pension. Of the employer's 12% EPF contribution, 8.33% (up to ₹1,250 on ₹15,000 ceiling) routes to EPS. Members get monthly pension from age 58, calculated as (pensionable salary × pensionable service)/70. Minimum 10 years of service required for pension; less means lump-sum withdrawal. Members can opt for higher pension on actual salary (vs ceiling) under the 2022 Supreme Court ruling — but requires backdated contribution adjustments.