EPS-95 Pension Scheme 2025: Retirement planning can feel complex, with a dizzying array of terms like EPF, PPF, NPS, and more. But one of the most important, yet often misunderstood, components of a salaried person’s financial future is the EPS-95 Pension Scheme.
If you’ve ever looked at your salary slip and seen a deduction for “Provident Fund (PF),” you are already part of this system. But what exactly is it? How does it work? And most importantly, will it provide you with a stable income after you retire?
What is the EPS-95 Pension Scheme?
Launched in November 1995, the EPS 95 Pension Scheme aims to offer a regular monthly income to employees after they retire, ensuring a secure and dignified life in their golden years. Both employees and employers contribute to the scheme, with 8.33% of the employer’s share of the employee’s salary (up to ₹15,000/month) going directly into the pension fund.
The EPS-95 Pension Scheme is a social security scheme managed by the Employees’ Provident Fund Organisation (EPFO). Its main goal is to provide a regular monthly pension to employees after they retire from the organized sector. It’s essentially a promise of a steady income stream in your golden years.
Types of Pensions under EPS-95 Pension
The EPS 95 Pension Scheme offers various types of pensions to address different life situations:
- Member Pension (Superannuation): For members retiring at 58 after at least 10 years of service.
- Early Pension: Available from age 50, with a 4% reduction per year before 58.
- Disability Pension: For members who become permanently disabled during service.
- Widow/Widower Pension: For the spouse after the member’s death.
- Children Pension: For up to two children until they turn 25.
- Orphan Pension: For orphans if both parents are deceased.
- Nominee/Dependent Parent Pension: If the member has no family, the nominee or dependent parents receive the pension.
EPS-95 Pension Scheme Eligibility Criteria
To benefit from the EPS 95 Pension Scheme in 2025, you must meet the following conditions:
- EPFO Membership: You must be a member of the Employees’ Provident Fund Organization.
- Minimum Service: You must have completed at least 10 years of service in an EPF-registered organization.
- Retirement Age: The standard retirement age is 58, but you can opt for an early pension from age 50 at a reduced rate.
- Disability: If you become permanently disabled during service, you are eligible for a pension regardless of service years.
- Family Pension: In case of the member’s death, the family (spouse, children, or nominee) is eligible for pension benefits.
Key Benefits of EPS 95 Pension Scheme
- Lifelong pension for retired employees
- Financial security for families in case of the member’s death or disability
- Multiple pension types to suit different scenarios
- Digital services for easy application and tracking
EPFO Minimum Pension Amount and Recent Updates
- The current minimum monthly pension under EPS 95 is ₹1,000, but there are recommendations to increase it up to ₹7,500 per month with Dearness Allowance (DA).
- Pension calculation is based on the average pensionable salary (last 60 months) and the number of years of eligible service.
- The government is digitizing pension services for faster approvals and easier access for retirees.
Documents Required for EPS-95 Pension
- Aadhaar card
- Bank passbook (with printed name)
- Birth certificates of family members
- Passport-sized photographs
- EPF details and relevant forms
How to Apply for EPS-95 Pension (Form 10D Process)
Applying for the EPS 95 pension is straightforward and can be done online7:
- Log in to the EPFO Unified Member Portal using your UAN and password.
- Go to ‘Online Services’ and select Form 10D.
- Fill in the required details, including the type of pension you are claiming.
- Upload necessary documents (Aadhaar, bank passbook, photos, etc.).
- Submit the application and verify via OTP on your Aadhaar-linked mobile number.
How Does Money Flow into Your EPS Account?
Let’s demystify the contributions.
- Your Contribution: 12% of your basic salary + Dearness Allowance (DA) goes entirely into your EPF account.
- Your Employer’s Contribution: Your employer also contributes 12%. This is where it gets split:
- 8.33% goes into your EPS account.
- The remaining 3.67% goes into your EPF account.
Important Note: The employer’s 8.33% contribution to EPS is calculated on a wage ceiling. Currently, this ceiling is ₹15,000 per month. This means the maximum amount that goes into your EPS account is 8.33% of ₹15,000, which is ₹1,250 per month, even if your actual salary is higher.
How is Your EPS-95 Pension Calculated? The Magic Formula
This is the part everyone wants to know. The pension amount is calculated using a simple formula:
Monthly Pension = (Pensionable Salary x Pensionable Service) / 70
Let’s break down these terms:
- Pensionable Salary: This is the average of your monthly salary for the last 60 months (5 years) before you retire. Since the salary for EPS is capped at ₹15,000, for most people, this will be ₹15,000.
- Pensionable Service: This is the total number of years you have worked and contributed to the EPS scheme. If you have worked for 9 years and 6 months, it will be rounded up to 10 years. If it’s less than 6 months, it’s rounded down.
Example Calculation:
Let’s say Mr. Sharma is retiring after 30 years of service. His average salary for the last 5 years was above the ₹15,000 ceiling.
- Pensionable Salary = ₹15,000
- Pensionable Service = 30 years
- Monthly Pension = (15,000 x 30) / 70 = 450,000 / 70 = ₹6,428 per month
Conclusion
The EPS 95 Pension Scheme 2025 is a cornerstone of retirement planning for India’s organized workforce. By ensuring a steady income post-retirement and offering comprehensive benefits to families, it provides much-needed peace of mind. If you are an EPFO member with at least 10 years of service, make sure to check your eligibility and apply for your EPS 95 pension through the official EPFO portal.