EPS Calculator
Calculate your monthly pension under the Employees' Pension Scheme (EPS) based on your service years and salary.
Pension Details
Note: EPS salary is capped at ₹15,000 for most employees.
Min 10 years required for pension eligibility.
Bonus Years
If you complete 20 years of service, you get a bonus of 2 years added to your pensionable service calculation!
How it's Calculated
The EPS Formula
Salary Cap
The salary used for calculation is the average of the last 60 months, capped at ₹15,000 per month.
Service Cap
The maximum service period considered is 35 years (including the 2-year bonus for 20+ years service).
Understanding Employees' Pension Scheme (EPS)
The Employees' Pension Scheme (EPS) is a social security scheme provided by the EPFO. It aims to provide a monthly pension to employees in the organized sector after they retire at the age of 58.
Key Features of EPS
- Employer Contribution: Out of the 12% employer contribution to EPF, 8.33% is diverted to the EPS account.
- Pension Age: Regular pension starts at age 58. Early pension can be opted for after age 50 (at a reduced rate).
- Family Pension: In case of the employee's death, the pension is paid to the spouse and children.
Minimum Pension
The Government of India provides a minimum monthly pension of ₹1,000 to members of the EPS scheme, even if the calculated amount is lower.
Frequently Asked Questions
Can I withdraw my EPS amount?
Yes, if your total service is less than 10 years, you can withdraw the EPS amount as a lump sum. After 10 years, you are only eligible for a monthly pension.
What is the maximum pension I can get?
Based on the ₹15,000 salary cap and 35 years max service, the maximum monthly pension is (15,000 * 35) / 70 = ₹7,500.
What happens if I have multiple EPF accounts?
You should merge your previous EPF accounts into your current one using your UAN. The total service across all organizations is counted for EPS eligibility.
Is EPS taxable?
Yes, unlike EPF maturity which is tax-free, the monthly pension received under EPS is taxable as 'Income from Salaries' in the hands of the retiree.