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For individualsRates reviewed September 2026

EPS Pension Calculator for Employees' Pension Scheme

An EPS pension calculator applies paragraph 12(2) of the Employees' Pension Scheme, 1995, which divides the product of your pensionable salary and your pensionable service by 70 to arrive at a monthly pension. Of the employer's 12% provident fund contribution, 8.33% is diverted into this scheme, subject to the statutory wage ceiling.

The ceiling is what keeps most pensions modest. Pensionable salary is the average of your EPF wages over the last 60 months, capped at ₹15,000 a month. The Ministry of Labour and Employment notified ₹15,000 on 29 May 2026 as the wage ceiling under the Code on Social Security, 2020, which gave the existing figure statutory recognition without raising it. A proposal to lift it to ₹25,000 remains under consideration, and in January 2026 the Supreme Court directed the Centre and EPFO to decide on a revision.

Two adjustments change the arithmetic at the margins. Pensionable service of 20 years or more attracts a bonus of two years. Drawing the pension before 58 reduces it by 4% for each year the age falls short of 58.

EPS Pension Calculator

Average EPF wages over the last 60 months. Capped at ₹15,000 by the wage ceiling.

₹

Six months or more of a part year counts as a full year.

years
Apply the 2 year weightage

Applies only where pensionable service reaches 20 years.

Before 58 the pension is reduced by 4% for each year short of 58.

years

Monthly pension

₹5,571

₹15,000 x 26 / 70

Pensionable salary usedCapped from ₹42,000 by the ₹15,000 wage ceiling
₹15,000
Pensionable service after roundingEntered as 24.0 years
24 years
Weightage addedService reaches 20 years
2 years
Service credited
26 years
Monthly pension at 58₹15,000 x 26 / 70
₹5,571
Early pension reductionDrawn at 58, no reduction
None
Monthly pension payable
₹5,571
Against the statutory minimumComfortably above
₹1,000
Against the practical maximum74.29% of the ₹7,500 the formula tops out at on the capped wage
₹7,500
  • EPF wages above ₹15,000 make no difference to the pension, because contributions were only made on the capped wage. The ceiling was notified on 29 May 2026 under the Code on Social Security, 2020 without being raised.
  • The application window for higher pension on actual salary has closed, so pensionable salary stays at the ceiling unless a joint option was validly exercised.

The formula

Monthly pension = Pensionable salary x Pensionable service / 70

Pensionable salary
Average EPF wages over the last 60 months of contributory service, capped at ₹15,000 a month unless a higher pension option was validly exercised.
Pensionable service
Completed years of membership, with six months or more counted as a full year, plus a weightage of two years where service reaches 20 years.
70
The statutory divisor in paragraph 12(2), which assumes a full service span of 35 years.
Early pension reduction
4% for each year by which the age at which the pension starts falls short of 58, available from age 50.

The statutory minimum member pension is ₹1,000 a month once ten years of eligible service are complete, and at the ₹15,000 ceiling with full service and weightage the formula tops out at ₹7,500 a month.

How to calculate it

  1. 1

    Confirm ten years of eligible service

    A member pension requires ten years of eligible service. Below that you may withdraw the EPS accumulation rather than draw a pension, so the formula does not apply.

  2. 2

    Work out pensionable salary

    Average your EPF wages over the final 60 months of contributory service. Where wages exceed the ceiling, substitute ₹15,000, since that is the amount on which contributions were actually made.

  3. 3

    Count pensionable service and add the weightage

    Count completed years, rounding six months or more up to a full year. If the rounded figure is 20 years or more, add two years of weightage.

  4. 4

    Apply the formula

    Multiply pensionable salary by pensionable service and divide by 70. Compare the result against the ₹1,000 statutory minimum.

  5. 5

    Adjust for an early start

    If you begin drawing between 50 and 58, reduce the pension by 4% for each year short of 58. Starting at 55 gives 88% of the full amount, and the reduction is permanent rather than restored at 58.

EPS-95 parameters for FY 2026-27

EPS-95 parameters for FY 2026-27
ParameterPosition
Wage ceiling for pensionable salary₹15,000 a month, notified on 29 May 2026 under the Code on Social Security, 2020
Pensionable salaryAverage EPF wages of the last 60 months, subject to the ceiling
Employer share diverted to EPS8.33% of wages, within the ceiling
Minimum eligible service for pension10 years
Weightage at 20 years or more of service2 years added to pensionable service
Early pensionFrom age 50, reduced by 4% for each year short of 58
Statutory minimum member pension₹1,000 a month

Worked example

Average EPF wages, last 60 months
₹42,000 a month
Pensionable salary after the ceiling
₹15,000 a month
Pensionable service
24 years
Age at which pension starts
58, and alternatively 55
  • Wages exceed the ceiling, so pensionable salary is capped at ₹15,000
  • Service is 24 years, which is 20 or more, so add the 2 year weightage to get 26 years
  • Pension at 58 = ₹15,000 x 26 / 70 = ₹5,571 a month
  • Starting at 55 instead means a reduction of 4% for each of 3 years, leaving 88%
  • Reduced pension = ₹5,571 x 88% = ₹4,903 a month

Monthly pension = ₹5,571 from age 58, or about ₹4,903 a month if drawn from age 55.

Frequently asked questions

Multiply pensionable salary by pensionable service and divide by 70, under paragraph 12(2) of the Employees' Pension Scheme, 1995. Pensionable salary is the average of EPF wages over the last 60 months, capped at ₹15,000 a month. Pensionable service of 20 years or more attracts an additional weightage of two years.
It remains ₹15,000 a month. The Ministry of Labour and Employment notified that figure on 29 May 2026 as the wage ceiling under the Code on Social Security, 2020, which gave statutory recognition to the existing threshold without raising it. A proposal to move it to ₹25,000 is pending, and the Supreme Court directed the Centre and EPFO in January 2026 to take a decision on revision.
At the ₹15,000 ceiling, 33 years of service plus the two year weightage produces ₹7,500 a month, which is the practical maximum for a member contributing only on the capped wage. A member who validly opted for higher pension on actual salary is not bound by that figure, because the pensionable salary used in the formula is higher.
No, the application window has closed. Following the Supreme Court judgment of 4 November 2022, EPFO opened a joint option for eligible members who were in service before 1 September 2014 and continued thereafter, and the last date for eligible pensioners ended on 3 March. EPFO received about 15.24 lakh applications, of which only a small number remained pending as of August 2026.
Yes, from age 50, provided you have completed ten years of eligible service. The pension is reduced by 4% for every year your age falls short of 58, so starting at 54 yields 84% of the full amount. The reduction is permanent and the pension is not restored to the full figure when you turn 58.
₹1,000 a month for a member who has completed ten years of eligible service. Where the formula produces less than that, the pension is raised to the minimum. Parliamentary committees have repeatedly recommended an increase, but the statutory minimum has not been revised.
Indirectly, through the definition of wages. The Code on Social Security restricts excluded allowances to 50% of total remuneration, so a salary structure heavy on allowances now yields higher EPF wages. For anyone already earning above ₹15,000 of EPF wages the pension is unaffected, because pensionable salary is capped at the ceiling in any case.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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