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EPS Pension Boost: How ₹25,000 Salary Limit Impacts Your Pension for 10-25 Years!
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News18•23-09-2026, 17:01
EPS Pension Boost: How ₹25,000 Salary Limit Impacts Your Pension for 10-25 Years!
- •Government increased wage limit under EPF and EPS from ₹15,000 to ₹25,000 per month.
- •This decision will lead to a significant pension jump of up to 66.6% for employees.
- •Monthly pension is calculated using the EPFO formula: Pensionable Salary X Pensionable Service ÷ 70.
- •Employees with 20 or more years of service receive an additional 2-year 'service bonus' from the government.
- •With the new ₹25,000 limit, a 20-year service pension will increase from ₹4,714 to ₹7,857, a direct benefit of ₹3,143.
Key Questions Answered
The government has increased the wage limit under the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) from ₹15,000 to ₹25,000 per month.
Monthly pension is calculated using the formula: Monthly Pension equals Pensionable Salary multiplied by Pensionable Service divided by 70.
According to EPFO rules, if an employee completes 20 years or more of service, they receive an additional 2 years of service bonus from the government.
