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EPS Pension Calculation: What will the monthly pension be for 10 to 25 years of service? Find out the full calculation here..

Shikha Saxena July 22, 2026 08:15 PM

Employees' Pension Scheme Rules 2026: Most salaried individuals focus solely on their EPF fund when planning for retirement, often overlooking the monthly pension available under the EPS (Employees' Pension Scheme). However, even with the implementation of EPS 2026 under the Code on Social Security, the method for calculating the pension remains largely unchanged.

If you have completed—or are about to complete—10, 15, 20, or 25 years of service, let us understand how much monthly pension you could receive after retirement.

What are the essential rules for receiving the EPS pension?

To avail of the monthly pension benefit under EPS, an employee must meet certain basic conditions:

Minimum Service Period: Completing at least 10 years of eligible service is mandatory to qualify for the pension. For service of less than 10 years, one can only withdraw the pension fund amount or obtain a Scheme Certificate.

Pension Age: The standard retirement age for the pension is 58 years. However, employees may opt for an early pension starting at age 50, though this entails a reduction based on the number of years.

Minimum Pension: The minimum monthly pension under EPS is fixed at ₹1,000 (as of July 2026).

EPS Pension Formula and Calculation

The monthly pension under EPS is calculated using this simple formula:

Monthly Pension = Pensionable Salary × Period of Service / 70

Pensionable Salary: For regular EPS members, the wage ceiling under the scheme is currently fixed at ₹15,000, unless one has opted for a higher pension.

How much pension will accrue for 10 to 25 years of service?

Based on the pensionable salary ceiling of ₹15,000, the calculation for your estimated monthly pension is as follows:

Please note that this figure is an estimated example. Your actual pension will depend on your total tenure, service weightage, and the options for a higher pension following the Supreme Court's 2022 verdict.

**Understand the difference between the EPF fund and EPS pension**

Employees often conflate EPF and EPS, but they are distinct entities:

**EPF (Provident Fund):** This accumulates contributions from both you and your employer, earning annual interest. It can be withdrawn as a lump sum upon retirement.

**EPS (Pension Fund):** This is used to provide a lifelong monthly pension after retirement, rather than a lump-sum payment. This is why, despite a potentially large PF balance, the EPS pension remains within a fixed limit.

**The role of EPS in retirement planning**

EPS pension should never be considered the sole source of post-retirement income. Given current inflation levels, this pension may constitute only a small portion of your total income. To ensure a secure old age, it is crucial to invest in other long-term instruments—such as NPS, mutual funds (SIP), and PPF—alongside EPS.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.