EPF Pension or Employee’s Pension Scheme is a sub-division of EPF. Here we will talk about what is EPS, how is EPS difference than EPF, EPS contribution, EPS eligibility and the benefits of EPF pension or EPS.
Employee Pension Scheme 1995
Employee Pension Scheme (EPS) or commonly known as EPS-95, is a pension scheme launched by the Government of India in 1995. The scheme came into effect on 16th Nov. 1995 under the EPF and Miscellaneous Provisions Act, 1952.
There are two schemes rolled out by the EPFO:
- EPF or Employee’s Provident Fund (funded by employee + employer)
a. EPS or Employee’s Pension Scheme (funded by employer) - EDLI or Employee’s Deposit Linked Insurance (funded by employer)
Who is covered under EPS?
All the employees working in the organised sector (government or private) are included in the EPF Pension or Employee’s Pension Scheme. That said, there is no separate account number for EPS. Whoever has an EPF account with a valid UAN, automatically gets covered under the Employee’s Pension Scheme as well.
EPS or EPF pension can be withdrawn prematurely or as early pension. For more details, click the link below.
Types of Pension under EPS
There are 7 types of pensions under the Employee’s Pension Scheme or EPS, viz.:
1. EPS Superannuation Pension: Normal pension to an EPS member on attaining 58 years of age, irrespective of their service-status
2. EPS Reduced Pension: Pension available to that member who has left their service and is 50 years old (but below 58 years of age); it is reduced at 4% per year (current age minus 58) and is less than the superannuation pension
Example: If Ms A wants to withdraw pension at 55 years of age, pension will be paid at:
88% of total EPF pension fund {(58-55) x4 – 100) %}
3. EPS Disablement Pension: Available when a member leaves their service due to total and permanent disablement
4. EPS Widow & children Pension: The pension payable to the spouse and children on the death of EPS member
5. EPS Orphan Pension: Payable to the surviving children of the EPF member (where the spouse of the EPF member has either died or remarried)
6. EPS Nominee Pension: Pension paid to the nominee declared by the EPF member (in case of no family – spouse or children)
7. EPS Dependent Parent Pension: Pension paid to the mother and father of the deceased EPF member who didn’t have a spouse, family or nominee
Read More: How to Withdraw funds from EPF Pension Fund?
EPS Contribution
EPS or EPF pension is funded by the contribution made by the employer. 8.33% of the employer (ER) contribution is directed towards the EPS while the remaining amount is credited to the EPF account of the respective employee. This means that the contribution made by the employee goes towards their EPF account in full.
| Contribution by | Contribution to EPS | Contribution to EPF |
|---|---|---|
| Employee (EE) | NA | 10% or 12% in full |
| Employer (ER) | 8.33% of EE contribution | EE Contribution ‘less’ 8.33% |
EPS and EPF – Difference
The following are some of the basic differences between EPS and EPF:
| EPF – Employee’s Provident Scheme | EPS – Employee’s Pension Scheme |
|---|---|
| The main scheme by EPFO – a holistic term | A sub-scheme of EPF |
| Contribution: Employee + Employer’s Share = 20% or 24% | Contribution: 8.33% of total Employer’s Share |
| Interest is credited on the EPF contribution on an annual basis (computed every month) | No interest on EPS contribution |
Employee Pension Scheme Status Check
To check the pension status of one’s EPS, members can go to the EPFO Pensioner’s Portal.
Steps for Employee’s Pension Scheme Login:
- 1. Go to EPFO Pensioner’s Portal.
2. Select your Office (region).
3. Enter your PPO No. (Click on “Know Your PPO No.” on the left panel if you are not aware of your PPO Number).
4. Click on “Get Status” to proceed.
If you’re looking for Employee’s Pension Scheme Login, there is no specific pension login page for EPS. You can check all the details about your EPS by logging into EPFO Member Portal
Old Pension and New Pension Schemes keywords are to be targeted in the National Pension Scheme post. These topics are not under EPF
EPF Pension: Key Takeaways
- When EPF member attains 58 years of age, EPS pension benefits can be availed
- Minimum years of service required for pension benefits: 10 years
- To claim pension benefits after 58 years of age: Form 10D
- EPS contribution: 8.33% of the total employer’s share
| Read more about EPF: | ||
| EPF Balance Check | EPF Correction Form | EPF Passbook |
| EPF Calculator | EPF Interest Rate | EPF Pension |
| EPF Contribution | EPF Online Claim | EPF Premature Withdrawal |
| Read more about UAN: | ||
| UAN | UAN Activation | |
| Read more about EPFO: | ||
| EPFO E-Sewa | EPFO Online Payment | EPFO KYC Online Update |
| EPFO Establishment | EPFO Member Portal | EPFO Registration Process |
| Read more about EPF Forms: | ||
| EPF Form 10C | EPF Form 19 | EPF Withdrawal Form 31 |
EPS: FAQs
No. EPF or Employee’s Provident Fund is the umbrella scheme whereas Employee’s Pension Scheme or EPS is a part of EPF.
Employer pays for the EPS of their employees. 8.33% of the total employer’s share for is diverted towards the EPS or the EPF pension fund.
EPS fund is automatically created with the generation of EPF UAN by the EPFO.
No. There is no interest credited on the EPS fund.
Pension withdrawal benefits under the EPS mean that the employee withdraws pension fund before retirement. For this, the total service years must be below 10 years but more than 6 months.
Reduced pension is a type of pension which can be claimed if the member is above 50 years but below 58 years and have left their service.
