EPS (Employees' Pension Scheme)

The Employees' Pension Scheme is funded from a portion of the employer's 12% PF contribution, not the employee's share. EPFO rules cap the EPS contribution at 8.33% of pensionable salary, applied against a wage ceiling — raised from ₹15,000/month to ₹25,000/month effective 17 September 2026 — so the standard maximum EPS contribution rose from ₹1,250/month to ₹2,083/month, with the remainder of the employer's 12% going into the employee's regular EPF account.

EPS provides a monthly pension after retirement — eligibility requires a minimum of 10 years of service and age 58 (early pension is available from age 50 with a reduction of about 4% per year). It's paid as a pension rather than a lump sum the way EPF is. Employees rarely interact with EPS directly during their working years since it's managed entirely on the employer-contribution side.