The Ministry of Labour & Employment has notified the Draft Employees’ Pension Scheme (EPS), 2026 under the Social Security Code, 2020. The draft aims to streamline pension provisions while continuing benefits available under the existing EPS, 1995
Key Highlights
- EPS, 2026 will replace the existing EPS, 1995 after its implementation.
- The Employer’s pension contribution remains 8.33% of pensionable wages, subject to the notified wage ceiling.
- Pensionable salary will be calculated based on the average monthly wages of the last 60 months before exiting the Pension Fund.
- Members with 10 years or more of eligible service will be entitled to monthly pension on retirement.
- The scheme continues to provide widow pension, child pension, orphan pension, and disability pension to eligible beneficiaries.
- Claims are proposed to be settled within 20 days of receiving complete documents.
| Particulars | Draft EPS, 2026 |
|---|---|
| Effective Date | From the date of publication in the Official Gazette (subject to the Social Security Code, 2020). |
| Applicable To | Employees covered under the Social Security Code, 2020. |
| Employer’s Pension Contribution | 8.33% of pensionable wages (subject to the notified wage ceiling). |
| Central Government Contribution | 1.16% of pensionable wages (subject to the notified wage ceiling). |
| Pensionable Salary | Average monthly salary of the last 60 months before exit from the Pension Fund. |
| Minimum Service for Pension | 10 years of eligible service. |
| Normal Pension Eligibility | On attaining the prescribed retirement/superannuation age with eligible service. |
| Early Pension | Available after attaining 50 years of age with applicable reduction. |
| Pension Formula | Pensionable Salary × Pensionable Service ÷ 70. |
| Family Benefits | Widow Pension, Child Pension, Orphan Pension and Disability Pension continue. |
| Claim Settlement | Complete claims to be settled within 20 days. |
| Record Maintenance | Employers must maintain and furnish prescribed employee records electronically. |
