Employees' Pension Scheme (EPS) 2026 Explained: Eligibility, Benefits, and Key Changes

Published on July 02, 2026 | 6 min read

Employees' Pension Scheme (EPS) 2026 Explained: Eligibility, Benefits, and Key Changes

Key Takeaways

The EPS 1995 scheme has been replaced by the Employees' Pension Scheme (EPS) 2026, which operates under the framework of the Code on Social Security, 2020.
The EPS 2026 was introduced to simplify pension rules, provide transparency in pension processes, and ensure faster settlement of pension claims.
The EPS 2026 offers various pension types as per the member’s financial requirements, such as monthly superannuation pension, early pension, family pension, disability pension, and withdrawal benefits, as well as compensation in case of pension disbursement.
Employees working for establishments covered under the EPF laws, who are enrolled in the EPF scheme, and permanently unable to work due to injury or illness sustained while working are eligible to receive pension under the EPS 2026 rules. Other pension benefits are available based on the respective eligibility criteria under the scheme.
Under the EPS 2026, the pension calculation, contribution rates, minimum pension amount, and broader eligibility criteria remain unchanged.

On June 29, 2026, the Ministry of Labour & Employment launched the Employees' Pension Scheme 2026, replacing the older EPS 1995 and the Employees' Family Pension Scheme, 1971 under the Code on Social Security, 2020.

Let’s understand the newly introduced Employees' Pension Scheme 2026, how it's different from EPS 1995, its benefits and eligibility criteria.

Employees' Pension Scheme (EPS) 2026

The Ministry of Labour & Employment introduced the Employees' Pension Scheme (EPS) 2026 and replaced the former EPS 1995 to ensure alignment with the Code on Social Security, 2020.

EPS 2026 aims to simplify former complex pension rules, offer transparency in processes, clearly define the benefits and rights of employees, pensioners and eligible family members, and enable faster claim settlement.

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What Changed in the Employees' Pension Scheme (EPS) 2026?

Here’s how the Employee’s Pension Scheme (EPS) 2026 is different from EPS 1995.

In Alignment with the Code on Social Security, 2020

The newly implemented EPS 2026 operates under the Code on Social Security, 2020 instead of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The objective is to modernise pension administration and provide financial benefits to a wider range of the workforce.

Timeline for Pension Claims

Under the EPS 2026, the pension claims raised by eligible candidates shall be settled within 20 days from the date of claim submission. If the claim is not disbursed within the set timeline due to process delays, the claimant is entitled to interest at 12% per annum for the period of delay.

Withdrawal Benefits

The EPS 2026 clearly defines the withdrawal benefits for employees who leave their employment before completing 10 years of service. This helps employees gain clarity regarding their pension contributions and enables employees to plan their retirement effectively.

Family and Disability Pension

Employees who become permanently disabled and unable to work due to injuries or illnesses sustained in the workplace are eligible for disability pensions. In case of the pensioner’s demise, the pension will be paid to eligible family members such as spouse and children.

Pension Fund Governance

The pension fund is invested as per the provisions of the Employees' Provident Funds Scheme, 2026. The existing assets of the Pension Fund may remain in the Public Account of the Government of India, while future contributions are also credited and invested as prescribed under the scheme. The Central Government guarantees a minimum interest rate of 8.1% on these deposits.

Simple Language

Most of the provisions under EPS 1995 that remain unchanged under the new EPS 2026 are rewritten in simpler language, avoiding jargon to help employees, pensioners and administrators under the scheme.

Benefits Offered Under EPS 2026

The following are the benefits offered under the EPS 2026.

Monthly Superannuation Pension

Members who served less than 10 years of eligible service and retired at the age of superannuation of 58-60 years, depending on the profession, can get a monthly superannuation pension.

Early Pension

Members opt for an early pension from the age of 50 years where they have served for less than 10 years of service and retired, or opt for an early retirement at the age of superannuation. The early pension amount will be reduced for every year it is drawn before the set retirement age.

Family Pension

In case of the death of the member, eligible family members such as spouse and children can get the pension benefits under EPS 2026.

Disability Pension

If the employee becomes permanently and totally disabled during service and is unable to work, they can receive disability pension even if they have not completed 10 years of eligible service.

Withdrawal Benefits and Scheme Certificate

Employees who leave their employment before completing the minimum 10 years of service are eligible for a withdrawal benefit or can opt for a Scheme Certificate, which acts as an official record of their pensionable service history and safeguards their accumulated EPS benefits if they join another EPF-covered organisation.

Quick Pension Claim Settlement

One of the best improvements under the new EPS 2026 is the prescribed timeline for pension claim settlement. Members must get their pension claim settled within 20 days from the date the claim was raised. In case of delay in disbursement due to administrative processes, the member is entitled to interest payment of 12% per annum as compensation.

Who Is Eligible for Employees' Pension Scheme (EPS) 2026?

The eligibility criteria for the Employees' Pension Scheme (EPS) 2026 remain unchanged. The following employees are eligible for pension payments under EPS 2026.

Employees working at organisations covered under the EPF laws.
Employees who are enrolled in the EPF and are eligible for membership of the Pension Scheme.
Members who complete at least 10 years of eligible service are entitled to a monthly pension on attaining the prescribed retirement age, depending on profession.
Employees suffering permanent total disability while in service are eligible for disability pension under EPS 2026.
Spouses and children, up to 25 years or until marriage, of deceased members are entitled to family pension benefits in accordance with the notified provisions. Widowed and divorced daughters are also eligible for family pension.
Employees leaving service before completing ten years of eligible service may receive withdrawal benefits or a Scheme Certificate, depending on their circumstances.

The Employee's Pension Scheme 2026 replaced the Employees’ Pension Scheme 1995 to ensure complete transparency regarding the pension processes, provide clarity on provisions, widen the eligibility criteria for pension entitlement and make the scheme easier to understand.

The EPS 2026 offers various types of benefits, including superannuation pension, early pension, disability pension, family pension and withdrawal benefits for eligible employees who leave service before completing 10 years of eligible service, subject to the provisions of the scheme.

FAQs

Can a widow or widower get pension on behalf of their deceased spouse?

Under EPS 2026, a widow or widower gets pension following the demise of their spouse, provided that the spouse worked in an organisation covered under the EPF laws and passed away in active service or made at least one month's contribution towards EPF.

Who can get monthly superannuation pension under Employees' Pension Scheme (EPS) 2026?

Employees who served less than 10 years of eligible service and retired at the age of superannuation of 58-60 years, depending on the profession, are entitled to monthly superannuation pension.

Who is entitled to disability pension under EPS 2026?

Under EPS 2026, employees who became permanently disabled due to an injury or illness sustained during the course of their employment and are unable to continue working are entitled to disability pension.

Who is eligible for the Employees' Pension Scheme (EPS) 2026?

Employees working in an organisation covered under EPF laws who meet the scheme's eligibility conditions can avail pension benefits under EPS.

How is the EPS 2026 pension calculated?

The pension calculation under the EPS 2026 scheme remains unchanged. The EPS pension is calculated based on the pensionable salary and years of pensionable service, as per the EPFO's prescribed formula: (Pensionable Salary × Pensionable Service) ÷ 70.

About Author

Mariyam Sara

Sub-Editor

holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.