EPS 2026 replaces EPS-95: Is the minimum EPS pension still ₹1,000? Here's what has changed
The government has notified the Employees' Pension Scheme (EPS), 2026, replacing the decades-old EPS-95 framework. But has the long-pending demand to increase the minimum monthly EPS pension above ₹1,000 finally been accepted? Here's what the new EPFO pension scheme says.
- Jul 2, 2026,
- Updated Jul 2, 2026 2:18 PM IST
The Centre has notified the Employees' Pension Scheme (EPS), 2026 under the Code on Social Security, 2020, replacing the Employees' Pension Scheme, 1995 (EPS-95) and the Employees' Family Pension Scheme, 1971. While the new framework modernises pension administration and introduces faster claim settlement, one question is on the minds of millions of EPFO subscribers: Has the minimum monthly EPS pension been increased from ₹1,000?
The answer is no.
Minimum EPS pension remains unchanged
The minimum monthly pension under the Employees' Pension Scheme, 2026 continues to be ₹1,000, the same amount that has been in force since September 1, 2014. Despite repeated demands from pensioners' associations and labour unions to raise the minimum pension in line with inflation and rising living costs, the government has not announced any increase under the new scheme.
Apart from a change in the scheme's name and administrative framework, the core pension provisions remain largely unchanged.
MUST WATCH: EPFO 3.0 Explained: Will Your PF Withdrawal Be Tax-Free? Here's What You Must Know
Pension calculation formula stays the same
The formula used to calculate monthly pension also remains unchanged under EPS 2026.
The monthly pension will continue to be calculated as:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Pensionable salary will continue to mean the average monthly salary drawn during the last 60 months before exiting the pension fund. Therefore, existing members should not expect any change in the way their pension is calculated.
Who will be covered under EPS 2026?
The new scheme applies to:
Employees who become members of the EPF Scheme, 2026 and whose wages are within the notified wage ceiling. Existing members covered under EPS-95 or the Employees' Family Pension Scheme, 1971.
A member will continue to remain covered until reaching the age of superannuation, withdrawing benefits, receiving pension or in the event of death.
Contribution pattern remains unchanged
The contribution structure under EPS also remains the same.
The employer will continue to contribute 8.33% of wages, subject to the prescribed wage ceiling, towards the pension fund. In addition, the Central Government will continue contributing 1.16% of wages, subject to the applicable wage ceiling.
Employees who exercised the higher pension joint option under the earlier EPS-95 scheme will continue to receive benefits under the existing higher pension provisions, which have now been incorporated into the new scheme.
MUST READ: EPFO new rules 2026: Mandatory PF capped at ₹1,800; extra savings now voluntary
What happens if you leave before completing 10 years?
Employees who leave service before completing 10 years of eligible service will continue to have two options.
They can either receive a withdrawal benefit or obtain a Scheme Certificate, allowing the completed service period to be added if they join another EPF-covered establishment later.
Existing pensioners will continue receiving benefits
The government has clarified that all pensions already sanctioned under EPS-95 and the Employees' Family Pension Scheme, 1971 will continue without interruption. Existing pensioners do not need to submit fresh applications or complete any additional formalities.
MUST READ | My PF is tax-free - Myth or truth? Know the EPF withdrawal tax rules before you cash out
What's new in EPS 2026?
Although pension benefits remain unchanged, the new scheme introduces several operational improvements aimed at making the system more efficient:
Pension claims must be settled within 20 days. EPFO will pay 12% annual interest if pension claims are delayed beyond the prescribed timeline. Higher pension provisions have now been formally incorporated into the scheme. The scheme places greater emphasis on digital compliance and online processing for employers and subscribers.
EPS members should note
The notification of the Employees' Pension Scheme, 2026 is primarily an administrative overhaul rather than a benefit enhancement. While the scheme promises faster claim settlement, stronger digital processes and legal backing under the Social Security Code, it does not increase the minimum EPS pension, which remains ₹1,000 per month. For millions of pensioners hoping for a higher monthly payout, the demand for a revision remains unresolved.
ICYMI | EPF Scheme 2026: What changes for your PF contribution, withdrawals or EPF interest?
The Centre has notified the Employees' Pension Scheme (EPS), 2026 under the Code on Social Security, 2020, replacing the Employees' Pension Scheme, 1995 (EPS-95) and the Employees' Family Pension Scheme, 1971. While the new framework modernises pension administration and introduces faster claim settlement, one question is on the minds of millions of EPFO subscribers: Has the minimum monthly EPS pension been increased from ₹1,000?
The answer is no.
Minimum EPS pension remains unchanged
The minimum monthly pension under the Employees' Pension Scheme, 2026 continues to be ₹1,000, the same amount that has been in force since September 1, 2014. Despite repeated demands from pensioners' associations and labour unions to raise the minimum pension in line with inflation and rising living costs, the government has not announced any increase under the new scheme.
Apart from a change in the scheme's name and administrative framework, the core pension provisions remain largely unchanged.
MUST WATCH: EPFO 3.0 Explained: Will Your PF Withdrawal Be Tax-Free? Here's What You Must Know
Pension calculation formula stays the same
The formula used to calculate monthly pension also remains unchanged under EPS 2026.
The monthly pension will continue to be calculated as:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Pensionable salary will continue to mean the average monthly salary drawn during the last 60 months before exiting the pension fund. Therefore, existing members should not expect any change in the way their pension is calculated.
Who will be covered under EPS 2026?
The new scheme applies to:
Employees who become members of the EPF Scheme, 2026 and whose wages are within the notified wage ceiling. Existing members covered under EPS-95 or the Employees' Family Pension Scheme, 1971.
A member will continue to remain covered until reaching the age of superannuation, withdrawing benefits, receiving pension or in the event of death.
Contribution pattern remains unchanged
The contribution structure under EPS also remains the same.
The employer will continue to contribute 8.33% of wages, subject to the prescribed wage ceiling, towards the pension fund. In addition, the Central Government will continue contributing 1.16% of wages, subject to the applicable wage ceiling.
Employees who exercised the higher pension joint option under the earlier EPS-95 scheme will continue to receive benefits under the existing higher pension provisions, which have now been incorporated into the new scheme.
MUST READ: EPFO new rules 2026: Mandatory PF capped at ₹1,800; extra savings now voluntary
What happens if you leave before completing 10 years?
Employees who leave service before completing 10 years of eligible service will continue to have two options.
They can either receive a withdrawal benefit or obtain a Scheme Certificate, allowing the completed service period to be added if they join another EPF-covered establishment later.
Existing pensioners will continue receiving benefits
The government has clarified that all pensions already sanctioned under EPS-95 and the Employees' Family Pension Scheme, 1971 will continue without interruption. Existing pensioners do not need to submit fresh applications or complete any additional formalities.
MUST READ | My PF is tax-free - Myth or truth? Know the EPF withdrawal tax rules before you cash out
What's new in EPS 2026?
Although pension benefits remain unchanged, the new scheme introduces several operational improvements aimed at making the system more efficient:
Pension claims must be settled within 20 days. EPFO will pay 12% annual interest if pension claims are delayed beyond the prescribed timeline. Higher pension provisions have now been formally incorporated into the scheme. The scheme places greater emphasis on digital compliance and online processing for employers and subscribers.
EPS members should note
The notification of the Employees' Pension Scheme, 2026 is primarily an administrative overhaul rather than a benefit enhancement. While the scheme promises faster claim settlement, stronger digital processes and legal backing under the Social Security Code, it does not increase the minimum EPS pension, which remains ₹1,000 per month. For millions of pensioners hoping for a higher monthly payout, the demand for a revision remains unresolved.
ICYMI | EPF Scheme 2026: What changes for your PF contribution, withdrawals or EPF interest?