EPF vs EPS: Decoding Your Retirement Pension and PF Contributions
Personal Finance
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News18•26-01-2026, 22:16
EPF vs EPS: Decoding Your Retirement Pension and PF Contributions
- •EPF (Employees' Provident Fund) and EPS (Employees' Pension Scheme) are two components of your PF contribution, managed by EPFO.
- •12% of your basic salary + DA is deducted for PF; your employer also contributes 12%, split between EPS (8.33%) and EPF (3.67%).
- •EPS contribution has a maximum salary limit of ₹15,000 for calculation, ensuring a monthly pension.
- •Pension calculation depends on 'pensionable service' and 'pensionable salary', not total EPF balance.
- •EPS provides family benefits including spouse's pension (50%) and children's benefits (25% each for two children until age 25), with a minimum guaranteed pension of ₹1,000.
Why It Matters: Understand EPF and EPS to secure both a lump sum and a regular pension for your retirement and family.
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