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

Who Is Eligible for an EPS Monthly Pension?

Under the Employees’ Pension Scheme (EPS) 2026, employees become eligible for a regular monthly pension if they satisfy the following conditions:

• Complete at least 10 years of pensionable service
• Attain the retirement age of 58 years

Employees also have the option to start receiving a pension from the age of 50 years, although the pension amount will be reduced as per applicable rules.

Employees who leave employment before completing 10 years of eligible service are not entitled to a monthly pension. Instead, they may either:

• Withdraw the eligible EPS amount, or
• Obtain a Scheme Certificate, allowing them to carry forward their pensionable service to future employment covered under EPFO.

How Is EPS Pension Calculated?

The monthly pension continues to be calculated using the existing formula:

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

For this calculation:

• Pensionable Salary refers to the average basic salary plus dearness allowance (DA) received during the last 60 months before retirement.
• For most subscribers, the pensionable salary is capped at ₹15,000 per month unless covered under higher pension provisions.

Estimated Monthly Pension Based on Years of Service

Assuming the maximum pensionable salary of ₹15,000, the estimated monthly pension would be:

Based on the current formula, an employee completing 10 years of eligible service can expect an estimated monthly pension of approximately ₹2,143 after retirement, subject to the prevailing wage ceiling.

Minimum EPS Pension

The minimum pension payable under the Employees’ Pension Scheme continues to remain at ₹1,000 per month.

Although there have been discussions regarding increasing the minimum pension to between ₹5,000 and ₹7,500 per month, no official notification approving such a revision has been issued so far.

Why Preserving EPS Service Is Important

Employees changing jobs should avoid withdrawing their EPF and EPS balances if they intend to receive pension benefits after retirement.

Maintaining the same EPF account or carrying forward pensionable service through a Scheme Certificate helps preserve accumulated service, allowing employees to meet the minimum 10-year eligibility requirement for a lifelong pension.

Continuity of service can significantly improve future pension eligibility and retirement benefits.

Conclusion

The Employees’ Pension Scheme (EPS) 2026 retains the existing pension calculation method and eligibility conditions despite replacing the earlier framework. Employees who complete 10 years or more of pensionable service and retire at the age of 58 years remain eligible for a lifelong monthly pension. Based on the current salary ceiling of ₹15,000, a subscriber with 10 years of service can expect an estimated monthly pension of around ₹2,143. Preserving pensionable service while changing jobs remains an important step toward securing retirement benefits under the scheme.

Summary

The Ministry of Labour and Employment has introduced the Employees’ Pension Scheme (EPS) 2026, replacing the earlier EPS-1995 and the 1971 Family Pension Scheme under the Code on Social Security, 2020. While the new framework replaces the previous pension scheme, the core eligibility criteria and pension calculation formula remain unchanged. Around 6 crore EPFO subscribers will continue to receive pension benefits based on the existing methodology.