EPS pension formula: how your EPFO pension is calculated, with examples
EPS monthly pension = pensionable salary × pensionable service ÷ 70. Pensionable salary is the average of the last 60 months, capped at ₹25,000 from 17 September 2026 (it was ₹15,000 from September 2014) unless you opted for higher pension. At the old cap the maximum was ₹7,500 a month; at the new cap it is ₹12,500 for 35 years of service. The minimum is ₹1,000. You need 10 years of service for a pension; full pension starts at 58, and a reduced pension is available from 50.
Key facts Last verified: 27 Sep 2026
| Item | Details | Source |
|---|---|---|
| Formula | Pensionable salary × pensionable service ÷ 70 | EPS, 1995 |
| Pensionable salary | Average of last 60 months, capped at ₹25,000 from 17 Sep 2026 (₹15,000 before; unless higher-pension option) | EPFO via PIB |
| Service | Minimum 10 years; bonus of 2 years if service is 20+ years; max 35 years | EPS, 1995 |
| Minimum pension | ₹1,000 a month | Govt of India |
| Age | Full pension at 58; reduced (4% less per year) from 50; can defer to 60 for 4% more per year | EPS, 1995 |
Examples: old ₹15,000 cap vs new ₹25,000 cap
| Pensionable service | At ₹15,000 | At ₹25,000 |
|---|---|---|
| 10 years | ₹15,000 × 10 ÷ 70 = ₹2,143 | ₹25,000 × 10 ÷ 70 = ₹3,571 |
| 20 years (+2 bonus = 22) | ₹15,000 × 22 ÷ 70 = ₹4,714 | ₹25,000 × 22 ÷ 70 = ₹7,857 |
| 30 years (+2 = 32) | ₹15,000 × 32 ÷ 70 = ₹6,857 | ₹25,000 × 32 ÷ 70 = ₹11,429 |
| 35 years (max) | ₹15,000 × 35 ÷ 70 = ₹7,500 | ₹25,000 × 35 ÷ 70 = ₹12,500 |
Most people will get a mix, not the ₹25,000 column. The new cap applies from 17 September 2026. EPFO has not yet published how service before that date will be counted. When the cap last rose (September 2014), earlier service was counted at the old cap. Until EPFO explains the method, treat the ₹15,000 column as the safer estimate for service already done.
Less than 10 years?
You don’t get a monthly pension. You can withdraw the EPS amount (Form 10C, as per Table D) or get a scheme certificate to carry your service forward to your next job — usually better, as service adds up towards the 10 years.
Pensioners must submit a life certificate once a year (valid for 12 months). See Jeevan Pramaan.
Frequently asked questions
How is EPS pension calculated?
Pensionable salary (average of the last 60 months, capped at ₹25,000 from 17 September 2026; ₹15,000 before) × pensionable service ÷ 70.
What is the maximum EPS pension?
₹7,500 a month at the old ₹15,000 cap, and ₹12,500 at the new ₹25,000 cap (35 years of service). Members who opted for higher pension may get more.
What is the minimum EPS pension?
₹1,000 a month.
Can I get EPS pension before 58?
Yes, from 50, at a reduced rate (4% less for each year before 58).
Official links
Use only these government websites. HumainOne is not connected to any of them.
- EPFOEPS rules, forms and pension services
- EPFO Member PortalService history and claims
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