The Employees’ Pension Scheme 2026 (EPS‑2026) has officially replaced the earlier Employees’ Pension Scheme 1995 and the Employees’ Family Pension Scheme 1971. This marks a significant legal and administrative change under the Social Security Code 2020. For millions of EPF subscribers, understanding what has changed and what remains the same is crucial.
Continuity for Existing Pensioners
All pensions already sanctioned under EPS‑95 or EPS‑71 will continue without interruption. Existing pensioners will keep receiving their benefits as before.
Pension Formula
There is no change in the formula used to calculate monthly pension. It remains:
Pensionable salary continues to be the average monthly salary drawn during the last 60 months before exiting the pension fund.
Contribution Structure
Employers will continue to contribute 8.33% of wages, subject to the wage ceiling. The government will contribute 1.16% of wages.
For employees opting for a higher pension, the employer’s contribution rises to 9.49% on salary exceeding ₹15,000, as per the Supreme Court judgment now formally incorporated into EPS‑2026.
Eligibility for Pension
- Superannuation pension after 10 years of service and retirement age.
- Early pension available from age 50 with at least 10 years of service, reduced by 4% per year before retirement age.
- Members with less than 10 years of service can either withdraw benefits or obtain a scheme certificate to carry service forward.
Minimum Pension
The minimum pension remains ₹1,000 per month. No increase has been announced.
Pension Claims Settlement
EPS‑2026 introduces a strict timeline:
- Claims must be settled within 20 days.
- If delayed without sufficient reason, 12% annual interest will be payable, recovered from the salary of the responsible EPF commissioner.
Family and Disability Pension
Family pension continues for eligible dependents including spouse, children, orphans, disabled children, nominees, and dependent parents.
- Orphan pension equals 75% of the widow pension if no widow survives.
- Disability pension remains available even without completing qualifying service, provided at least one month’s contribution is credited.
Investment of Pension Fund
Future government contributions from April 1, 2026 onwards will be invested in the public account of the central government. A minimum return of 8.5% is guaranteed.
Key Changes in EPS‑2026
- Pension claims to be settled within 20 days.
- 12% interest for delayed claims.
- Higher pension provisions formally incorporated.
- Minimum 8.5% return on government contribution.
- Digital compliance for employers.
- Scheme renamed to Employees’ Pension Scheme 2026.
Comparison Between EPS‑95 and EPS‑2026
| Topic | EPS‑95 | EPS‑2026 | What Changed |
|---|---|---|---|
| Legal framework | EPF & MP Act, 1952 | Social Security Code, 2020 | Major legal change |
| Scheme name | Employees’ Pension Scheme, 1995 | Employees’ Pension Scheme, 2026 | Renamed |
| Pension formula | Salary × Service ÷ 70 | Same formula | No change |
| Employer contribution | 8.33% | 8.33% | No change |
| Government contribution | 1.16% | 1.16% | No change |
| Higher pension | Added after SC judgment | Incorporated | Clarified |
| Pension processing | No fixed timeline | 20 days | New service standard |
| Delay penalty | None | 12% interest | New safeguard |
| Investment | Existing provisions | Minimum 8.5% return guaranteed | New provision |
FAQ
Q1. Who is eligible to join EPS‑2026? Any employee who was a member or eligible for EPS‑95 or EPS‑71 before EPS‑2026 started.
Q2. Has the pension formula changed? No, it remains the same.
Q3. What is the minimum pension under EPS‑2026? ₹1,000 per month.
Q4. How soon must pension claims be settled? Within 20 days.
Q5. What happens if claims are delayed? 12% annual interest is payable, recovered from the responsible commissioner.
Q6. Is higher pension formally included? Yes, it is now part of EPS‑2026.
Official Link
For complete details and registration, visit the EPFO Official Portal.