Employee Pension Scheme (EPS)

Out of the employer's total EPF contribution, 8.33% of basic wages plus dearness allowance is directed into EPS rather than the employee's own EPF account balance - but this is calculated against a wage ceiling of ₹15,000/month (capping the EPS-directed contribution at roughly ₹1,250/month), not your full actual salary. EPS pays a defined monthly pension after retirement, calculated via a formula based on pensionable salary and years of service, separate from withdrawing your EPF account balance.

A "higher pension" option - recalculating EPS based on actual historical wages above the ₹15,000 ceiling rather than the capped amount - was available via a one-time joint-option window, which closed on 11 July 2023; it isn't an ongoing, anytime-available choice. EPFO has discussed potentially raising the ₹15,000 wage ceiling (to ₹25,000, under proposed "EPFO 3.0" reforms) as of 2026, but this remained a proposal, not a confirmed change, as of this writing.

(Wage ceiling, contribution percentage, and higher-pension window status checked as of September 2026 - confirm current status if a ceiling revision has since been formally notified.)