What it means
The employee does not pay into EPS directly. Of the employer’s 12% PF contribution, 8.33% of wages up to the ceiling goes to EPS; the rest goes to the employee’s EPF account. The ceiling is ₹25,000 a month from 17 Sep 2026 (S.O. 5109(E)), so EPS is at most ₹2,083 a month; it was ₹15,000, or ₹1,250, before. A member who completes 10 years of service gets a monthly pension from age 58. The basic formula is:
Monthly pension = pensionable salary × years of service ÷ 70
EPFO says EPS membership is open only to employees whose wages, on joining or on 17 Sep 2026 when the new ceiling began, were not above the ceiling. For others the full employer share goes to EPF. Someone who joins at 58 or older cannot become an EPS member.
Example
Suresh, a storekeeper, retires at 58 with 25 years of service and a pensionable salary of ₹15,000.
| Part | Value |
|---|---|
| Employer’s EPS share each month, 8.33% of ₹15,000 | ₹1,250 |
| Monthly pension: 15,000 × 25 ÷ 70 | ₹5,357 |
Common mistakes
- Sending EPS share for a member who is not eligible, which EPFO later reverses.
- Showing EPS as a deduction on the payslip; it comes from the employer’s share.
- Leaving service gaps unlinked, which cuts years of service.
In MyRecords
The monthly statutory summary shows the employer’s PF split into EPF, EPS and EDLI, and the ECR file carries EPS wages per employee for the EPFO portal.