Key Takeaways
- • EPFO is likely to consider the long-pending demand to raise the minimum monthly pension under the Employees' Pension Scheme (EPS) from Rs 1,000 at its 240th Central Board of Trustees (CBT) meeting, reportedly scheduled for November 19, 2026, in Gir, Gujarat, according to media reports cited by The Economic Times.
- • The current minimum EPS pension is Rs 1,000, with the government topping up any shortfall; the wage ceiling remains Rs 25,000, and the employer contribution is capped at Rs 2,083 per month (8.33% of basic pay).
- • EPS 2026, notified under the Code on Social Security, 2020, replaced the EPS 1995 and EPFS 1971 from July 2026, with the pension calculation formula unchanged.
- • Key EPS 2026 changes include claim settlement within 20 days, 12% interest on delayed pension claims, incorporation of higher pension provisions, and digital employer compliance requirements.
Summary
The Employees' Provident Fund Organisation (EPFO) is likely to take up the long-pending demand for raising the minimum monthly pension under the Employees' Pension Scheme (EPS) at its next Central Board of Trustees (CBT) meeting. Media reports say the 240th CBT meeting is scheduled for November 19, 2026, in Gir, Gujarat, and that the proposal may come up for discussion. No decision has been reported.
The current minimum monthly EPS pension is Rs 1,000. If an employee's calculated pension falls below that level, the government contributes the difference. There is no fixed maximum pension; the amount depends on pensionable salary and pensionable service, subject to the current wage ceiling of Rs 25,000. Under the scheme, employers contribute 8.33% of an employee's basic pay or Rs 2,083, whichever is lower, each month toward the EPS fund.
The pension formula is unchanged under EPS 2026: monthly pension equals pensionable salary multiplied by pensionable service, divided by 70. Pensionable salary is the average monthly salary drawn over the last 60 months before exit from the fund. Because the contribution is calculated on the Rs 25,000 wage ceiling, employers' monthly EPS contribution stays at a maximum of Rs 2,083 even where basic pay and dearness allowance total Rs 50,000.
The government notified EPS 2026 under the Code on Social Security, 2020, replacing the Employees' Pension Scheme, 1995, and the Employees' Family Pension Scheme, 1971, effective July 2026. The scheme introduces faster claim processing, with claims to be settled within 20 days, 12% interest on delayed pension claims, higher pension provisions incorporated into the framework, and digital compliance requirements for employers.
The current minimum monthly EPS pension is Rs 1,000. If an employee's calculated pension falls below that level, the government contributes the difference. There is no fixed maximum pension; the amount depends on pensionable salary and pensionable service, subject to the current wage ceiling of Rs 25,000. Under the scheme, employers contribute 8.33% of an employee's basic pay or Rs 2,083, whichever is lower, each month toward the EPS fund.
The pension formula is unchanged under EPS 2026: monthly pension equals pensionable salary multiplied by pensionable service, divided by 70. Pensionable salary is the average monthly salary drawn over the last 60 months before exit from the fund. Because the contribution is calculated on the Rs 25,000 wage ceiling, employers' monthly EPS contribution stays at a maximum of Rs 2,083 even where basic pay and dearness allowance total Rs 50,000.
The government notified EPS 2026 under the Code on Social Security, 2020, replacing the Employees' Pension Scheme, 1995, and the Employees' Family Pension Scheme, 1971, effective July 2026. The scheme introduces faster claim processing, with claims to be settled within 20 days, 12% interest on delayed pension claims, higher pension provisions incorporated into the framework, and digital compliance requirements for employers.
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