The Employees’ Pension Scheme (EPS-95), introduced in 1995 by the Employees’ Provident Fund Organization (EPFO), offers a dependable source of monthly income to retired employees in India. As numerous pensioners across the country await detailed insights into their pension entitlements, this article presents a comprehensive guide to understanding eligibility, calculation, application process, and the impact of recent Supreme Court rulings.
Summary of EPS-95 Scheme
| Feature | Details |
|---|---|
| Scheme Name | Employees’ Pension Scheme (EPS-95) |
| Launched By | Employees’ Provident Fund Organization (EPFO) |
| Year of Introduction | 1995 |
| Eligible Employees | Those with a basic + DA up to ₹15,000/month (voluntary above that) |
| Minimum Service Required | 10 years |
| Minimum Age for Pension | 58 years |
| Mode of Payment | Monthly pension after retirement |
| Official Website | https://www.epfindia.gov.in |
What is EPS-95?
EPS-95 is a government-backed social security scheme aimed at ensuring financial stability for employees post-retirement. It provides a fixed monthly income to eligible individuals and their families in cases of retirement, disability, or death.
Key Features:
- Pension begins at age 58
- 10 years of minimum service required
- Lifelong pension after retirement
- Family pension to spouse and dependent children in case of death
Who is Eligible for EPS-95 Pension?
To be eligible for pension under the EPS-95 scheme, you must:
- Have completed at least 10 years of contributory service
- Have reached the age of 58 years
- Have contributed to EPS-95 during your working years
- Be a member of EPFO and have an active UAN
- Opted for higher pension contribution, if eligible (especially after Supreme Court judgment)
How is EPS-95 Pension Calculated?
The pension under EPS-95 is calculated using the following formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Where:
- Pensionable Salary = Average salary (basic + DA) for the last 60 months of service
- Pensionable Service = Number of years of EPS contribution (maximum 35 years)
Example:
If an individual has an average pensionable salary of ₹15,000 and has served 30 years:
Pension = (₹15,000 × 30) ÷ 70 = ₹6,428/month
Standard EPS-95 Pension Table (for ₹15,000 Salary)
| Years of Service | Monthly Pension |
| 10 Years | ₹2,143 |
| 15 Years | ₹3,214 |
| 20 Years | ₹4,286 |
| 25 Years | ₹5,357 |
| 30 Years | ₹6,428 |
| 33 Years | ₹7,071 |
| 35 Years | ₹7,500 |
Higher Pension Under Supreme Court Ruling
In November 2022, the Supreme Court allowed eligible employees to opt for a higher pension based on their actual salary, even if it exceeded the earlier cap of ₹15,000. This can significantly increase pension benefits.
Higher Pension Calculation (Based on ₹30,000 Salary)
| Years of Service | Monthly Pension (New Rule) |
| 10 Years | ₹4,286 |
| 15 Years | ₹6,429 |
| 20 Years | ₹8,571 |
| 25 Years | ₹10,714 |
| 30 Years | ₹12,857 |
| 33 Years | ₹14,214 |
| 35 Years | ₹15,000+ (subject to cap) |
Note: Those who retired before 1st September 2014 may need to apply separately under special provisions.
How to Apply for EPS-95 Pension
Follow these steps to apply for your pension:
- Visit the official EPFO website: https://www.epfindia.gov.in
- Fill and submit Form 10D (for monthly pension)
- Upload required documents
- For higher pension, submit joint option form with employer verification
- Track your claim status through the EPFO portal
Documents Required:
- UAN (Universal Account Number)
- Aadhaar Card
- Bank passbook (copy)
- Employer-issued service certificate
- Passport-size photo
Family Pension Benefits under EPS-95
In the unfortunate event of the pensioner’s death, the family is eligible for the following benefits:
- Widow/Widower Pension: 50% of the pension amount
- Children Pension: 25% per child (maximum for 2 children)
- Orphan Pension: Higher share if no surviving spouse
Key Benefits of EPS-95 Scheme
- Lifetime income after retirement
- Nominal contribution (8.33% of employer share)
- Family security through survivor pension
- Legal protection with latest Supreme Court ruling
- Inflation-resistant with potential for higher pension
FAQs on EPS-95 Pension Scheme
Q1. What is the minimum pension under EPS-95?
A: The minimum pension is currently ₹1,000/month. Government has proposed to increase this to ₹3,000/month.
Q2. Can I receive both EPF and EPS benefits?
A: Yes. EPF is a lump sum at retirement; EPS provides monthly pension.
Q3. What happens if I work less than 10 years?
A: You will receive a one-time withdrawal benefit instead of a monthly pension.
Q4. Is the EPS-95 pension taxable?
A: Yes. It is taxable under the Indian Income Tax Act.
Q5. Can I claim a higher pension after retirement?
A: Yes, subject to eligibility and submission of the joint option form with employer approval.
Q6. How do I track my EPS-95 application status?
A: You can track it on the EPFO pension claim portal using your UAN credentials.
Final Thoughts
EPS-95 remains a crucial pillar of retirement planning for millions of Indian workers in the organized sector. With recent legal advancements allowing for higher pensions based on actual salary, many pensioners stand to benefit substantially. Understanding the formula, eligibility, and correct application process is essential to maximizing your entitled pension.
Always consult with your employer or a financial advisor for personalized guidance. Ensure your documents and records are accurate and updated on the EPFO portal before applying.
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