The notification of the Employees' Pension Scheme (EPS) 2026 has prompted many salaried employees to ask an important question: How much monthly pension will they receive after completing 10 years of service? While the updated scheme has replaced the earlier EPS-1995 framework, the basic pension calculation formula and eligibility conditions remain largely unchanged.

If you are an EPF subscriber planning your retirement, understanding how EPS pension is calculated—and how your years of service affect the final amount—is essential for long-term financial planning.

Disclaimer: This article is for general informational purposes only. Pension eligibility and benefits depend on EPFO rules applicable to individual cases.

Minimum 10 Years of Service Is Required

To qualify for a monthly pension under the Employees' Pension Scheme, a member must complete at least 10 years of pensionable service.

Eligible members can begin receiving their regular monthly pension after attaining the age of 58 years. Those who wish to start receiving pension earlier may opt for early pension from the age of 50, but the monthly amount is reduced as per EPFO rules.

Employees who leave service before completing 10 years of pensionable service are generally not eligible for monthly pension. Instead, they may either withdraw eligible EPS benefits as permitted or obtain a Scheme Certificate, allowing them to carry forward their pensionable service to future employment.

How Is EPS Pension Calculated?

EPFO calculates monthly pension using a fixed formula:

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

Under the current framework, pensionable salary generally refers to the average basic salary plus dearness allowance (DA) during the last 60 months of eligible service.

For most EPF members covered under the standard wage ceiling, the pensionable salary is calculated up to ₹15,000 per month, unless covered under higher pension provisions applicable in specific cases.

Pension Calculation at ₹15,000 Salary

Using the standard EPFO formula, the estimated monthly pension works as follows:

*Illustrative calculations based on a pensionable salary of ₹15,000 under the standard EPS formula.

The examples show that pension increases gradually with longer pensionable service. Although the monthly amount may appear modest, EPS provides a lifelong pension after retirement, subject to scheme rules.

Minimum Pension Continues at ₹1,000 Per Month

The minimum pension payable under the Employees' Pension Scheme currently remains ₹1,000 per month.

If the pension calculated under the formula is lower than ₹1,000, eligible pensioners continue to receive the prescribed minimum amount under the existing government provisions.

For several years, pensioners' organizations have demanded an increase in the minimum pension to between ₹5,000 and ₹7,500 per month, citing rising living costs and inflation. However, no official decision has been announced by the government so far regarding this proposal.

Why Transferring EPS During a Job Change Is Important

Employees changing jobs should ensure that both their EPF and EPS accounts are transferred to the new employer through their Universal Account Number (UAN).

Withdrawing the EPS amount before completing the required 10 years of pensionable service may interrupt pension eligibility and reduce future retirement benefits.

Keeping pensionable service continuous through proper account transfer helps employees complete the minimum service requirement and become eligible for monthly pension after retirement.

Plan Retirement Carefully

The introduction of EPS 2026 has not altered the core pension formula or the minimum service requirement. Employees should therefore focus on maintaining uninterrupted pensionable service, keeping their EPF records updated, and understanding how salary and years of service influence retirement benefits.

Careful retirement planning, regular monitoring of EPF records, and timely transfer of pension accounts during job changes can help maximize long-term pension benefits under the Employees' Pension Scheme.