All You Need to Know About Employees’ Pension Scheme (EPS)

The Employees’ Provident Fund Organisation (EPFO) provides a social security benefit known as the Employees’ Pension Scheme (EPS). This scheme is available to all employees who qualify for the Employees’ Provident Fund (EPF). Individuals working in the organised sector can receive pension benefits once they reach the age of 58, provided they have completed a minimum of 10 years of service, which does not have to be continuous.

Under EPF, the employee contributes 12% of their salary every month. From the employer’s contribution, 8.33% is deposited into EPS, while the remaining 3.67% goes toward the employee’s EPF account.

Eligibility Criteria for EPS

To receive EPS benefits, an individual must:

• Be a registered EPFO member

• Be 50 years old for early pension or 58 years old for regular pension

• Have completed at least 10 years of service

Types of Pension Benefits Under EPS

1. Widow Pension (Vridha Pension)

The widow of the member receives a pension until her death or remarriage. The minimum pension amount is ₹1,000 per month. If multiple widows exist, the pension is paid to the eldest widow.

2. Child Pension

Along with the widow’s pension, up to two surviving children can receive a monthly child pension. Each child is eligible until the age of 25 and receives 25% of the widow’s pension.

3. Orphan Pension

If the member passes away without a surviving widow, up to two children can receive an orphan pension. This amount equals 75% of the widow’s pension, given first to the eldest child.

4. Reduced Pension

Members aged 50 to 58 years who have completed at least 10 years of service can opt for an early pension. In this case, the pension amount is reduced by 4% for every year before the age of 58.

How to Check Your EPS Balance

Follow these steps after activating your UAN:

Step 1: Visit the EPFO official website.
Step 2: Under Our Services, click ‘For Employees’.
Step 3: Select ‘Member Passbook’.
Step 4: Log in using your UAN, password, and captcha.
Step 5: Choose the relevant Member ID from the list.
Step 6: Your EPS balance will appear under the ‘Pension Contribution’ column.
Step 7: You can download or print the passbook for your records.

FAQs on EPS

1. Can an EPS member change their nomination?

Yes. EPS members can update their nomination, but the nominee must be a family member. Employees without a family cannot nominate someone outside.

2. What is the annuity commitment under EPS?

The employer contributes approximately ₹1,250 per month to the employee’s EPS account.

3. How can I transfer EPS online?

EPS can be transferred online via the Composite Claim Form after logging into the EPFO portal. When changing jobs, select EPF transfer, and both EPF and EPS balances will move to the new account.

4. How do I check my EPS amount?

The EPS contribution is visible in the EPF Passbook, where the last column shows the employer’s monthly pension deposit. The passbook can be downloaded using your UAN and password.

5. Is EPS taxable?

Yes. Both the pension and lump-sum withdrawal are taxable. EPF interest remains tax-free only if annual contributions do not exceed ₹2.5 lakh; beyond that, tax is applied as per your income tax slab.