Employee Pension Scheme (EPS) Eligibility, Formula, Types

Employee Pension Scheme (EPS) is a social security scheme from the Employees’ Provident Fund Organisation (EPFO). Both employees and employers contribute 12% of the employee’s basic salary to the EPF. This helps them in better retirement planning and sufficient fund flow after retirement.

We all know EPF (Employee Provident Fund)—that’s the big pot of money you get when you retire or switch jobs. In 1995, the Indian Government introduced the Employee Pension Scheme (EPS) to create financial security for employees after retirement. In this article, we will explain the meaning of EPS, its eligibility, contribution rules and other associated benefits.

What is Employee Pension Scheme?

The Employee Pension Scheme (EPS) is a social security scheme introduced on 16th November 1995. The scheme ensures financial security for employees post-retirement, disability, or to their families in case of death. EPS doesn’t work as an independent scheme. It is integrated with the Employee Provident Fund (EPF) system.

Under the EPF framework, both the employer and employee contribute amount.

Types of Employee Pension Scheme (EPS)

There are 4 primary types of pension schemes. They are listed below:

Widow Pension: In this case, the widow of the member of EPS receives the pension.

Child Pension: In this case, the widow and children of the member of EPS receive the pension.

Orphan pension: In this case, the children of the member of EPS receives the pension.

Reduced pension: If you have withdrawn an early pension, the pension you receive in retirement slashes by 4% every year.

Eligibility Criteria for Employee Pension Scheme (EPS)

• Be an EPFO member
• Your salary at the time was ₹15,000 or less.  
• Complete 10 years of active service along with equal years of active contribution towards the EPF pension Scheme
• Be 58 years or above
• Have attained at least 50 years of age to withdraw from the EPS pension at a lower rate.

NPS Vatsalya Scheme: Benefits, Eligibility, Interest, Apply Online

Documents Required

• Identity Proof (Aadhaar/Passport/Voter ID)
• Bank Account Details (Cancelled cheque/passbook copy)
• Proof of Date of Birth (Birth certificate/School leaving certificate)
• Death Certificate (for family pension)
• relationship proof (for family pension)
• Disability Certificate, from EPFO-approved doctors (for disablement pension)
• Service Proof (EPF passbook/employment records)

How to Track EPFO Higher Pension Application Status?

You can check the status of the EPFO higher pension application by following the below steps:

Step 1: Visit the EPFO Unified Member portal.

Step 2: Click on the ‘Track Application Status for Pension on Higher Wages’.

Step 3: On the next page, click on ‘Click Here’ under the ‘Track application status for Pension on Higher Wages’ tab.

Step 4: Select and enter the application acknowledgement number, UAN number or PPO number.

Step 5: Enter the Captcha code, tick the consent and click on the ‘Get OTP’ button.

Step 6: Enter the OTP and click on ‘Get Status’. The application status will be displayed on the screen.

Process to check EPS balance

The Universal Account Number can be used to check the EPS balance on the EPFO portal (UAN). Individuals must first finish the UAN activation process. Here is the The step-by-step procedure to check the EPF balance after the activation of UAN is complete is mentioned below:

Step 1: You must visit the official website of EPFO (https://www.epfindia.gov.in/site_en/index.php).

Step 2: Click on ‘For Employees‘ under the ‘Our Services‘ menu.

Step 3: Click on ‘Member Passbook‘ on the next page.

Step 4: Next, enter the User Name (UAN), password, and captcha details. Click on ‘Login‘.

Step 5: On the next page, various Member IDs will be displayed. Click on the respective Member ID.

Step 6: The total pension amount that has been contributed will be displayed under ‘Pension Contribution‘ column.

Step 7: You will be able to download and take a print out of the statement as well.

The Employee Pension Scheme in India remains a vital aspect of financial security for millions of employees. It guarantees a fixed income payable every month. The EPFO will digitally register each application and provide the receipt number to the applicant.