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EPS Pension Calculation: Here's how you can get maximum of Rs 7,500 monthly pension in EPS after retirement
- Written by Bhawna Gupta
Published: 12:08 PM, Sep 18, 2025
|Updated: 12:18 PM, Sep 18, 2025
EPS or Employees’ Pension Scheme was launched in 1995. The scheme is available for members of the Employees Provident Fund Organisation (EPFO). Under this scheme, employees who are working in the organised sector get pension. Both existing and new members can take advantage of EPS.
This article will talk about the maximum pension you can get in EPS. You will also know the procedure to get the pension under EPS. Take a look:
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How much does an employee pay towards EPF?
An employee and his employer pay 12 per cent of the basic salary towards EPF.
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How much goes to EPS?
Out of the 12 per cent of EPF contribution, 8.33 per cent goes towards EPS, and the remaining 3.67 per cent of their amount goes to the employee's EPF account.
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What is the eligibility to avail EPS benefits?
- Member of EPFO - Completed 10 years of service - Reached the minimum age of 58
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Can an employee withdraw EPS earlier?
Yes, they can withdraw their EPS at a reduced rate from the age of 50 years.
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Can an employee defer EPFO pension after 58?
Yes, members can defer their pension for two years, till 60. After this, they will get a pension at an additional rate of 4% for each year.
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What is the minimum pension amount under EPS?
The minimum pension amount is Rs 1,000.
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What is the maximum pension amount under EPS?
As the maximum EPS contribution allowed in a month is Rs 1,250, which is equal to Rs 15,000 a year. It means the maximum pensionable salary to calculate the pension is Rs 15,000.
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Understand with an example
If 8.33 per cent of a person's basic salary and DA is Rs 6,000, only Rs 1,250 will go to the employee's EPS account; the remaining Rs 4,750 goes to the employee's EPF account, on which they get the interest as per prevailing rates. Employees don't get any interest on the EPS amount.
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EPS pension calculation formula
(Pensionable Salary x Pensionable Service)/70 Pensionable salary: Rs 15,000 (fixed) No of service years: 25 Estimated monthly EPS pension will be: Rs 5,357.14
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What is the maximum pension amount under EPS?
Pensionable salary: Rs 15,000 (fixed) Service years: 35 or above Pension amount: Rs 7,500 monthly
Pls note, the maximum pensionable salary is fixed at Rs 15,000, and the maximum pensionable service years are also fixed at 35.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning.)
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