EPS Pension 2026: How Much Monthly Pension Can You Get After 10 Years of Service?

The Ministry of Labour and Employment has notified the Employees' Pension Scheme (EPS) 2026, replacing the EPS-1995 and the 1971 Family Pension Scheme under the Code on Social Security, 2020.

While the new scheme replaces the earlier pension framework, the basic pension formula and eligibility rules remain unchanged. Around 6 crore EPFO subscribers will continue to follow the same rules for receiving a monthly pension.

Who Is Eligible ForA Monthly EPS Pension?

To receive a lifelong monthly pension under EPS 2026, an employee must:

Complete at least 10 years of pensionable service 

Reach the retirement age of 58 years 

Employees can also choose to start receiving a reduced pension from the age of 50, subject to the applicable rules.

If an employee leaves service before completing 10 years, they will not receive a monthly pension. Instead, they can either withdraw the EPS amount or obtain a Scheme Certificate to carry forward their pensionable service for future employment.

How Is The EPS Pension Calculated?

The monthly pension under EPS is calculated using the following formula:

Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70

Here:

Pensionable salary is the average basic salary plus dearness allowance received during the last 60 months before retirement. 

For most employees, the pensionable salary is capped at ₹15,000 per month. 

Estimated Monthly Pension Based On Years Of Service

Assuming the maximum pensionable salary of ₹15,000, the estimated monthly pension is as follows:

Based on the current formula, an employee completing 10 years of service can expect an estimated monthly pension of around ₹2,143 after retirement.

What Is The Minimum EPS Pension?

The minimum pension under the scheme continues to be ₹1,000 per month.

There have been proposals to increase the minimum pension to between ₹5,000 and ₹7,500 per month. However, these proposals have not yet been approved or officially notified.

Read More: IDFC FIRST Bank Launches EPFO-Integrated PF Payment Service for Businesses!

Why You Should Not Withdraw Your EPS Benefits When Changing Jobs

Employees should avoid withdrawing their EPF and EPS benefits when switching jobs if they wish to receive a monthly pension in the future.

Continuing the same EPF account or carrying forward pensionable service through a Scheme Certificate helps preserve the years of service required to qualify for the lifelong pension.

Conclusion

The EPS Pension 2026 retains the existing pension formula and eligibility requirements. Employees who complete at least 10 years of pensionable service and retire at 58 years can receive a monthly pension, with an estimated payout of ₹2,143 based on the current wage ceiling of ₹15,000. Those planning for retirement should preserve their pensionable service when changing jobs to remain eligible for the lifelong pension benefit.

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.