Early EPS pension allowed from age 50, but with a 4% yearly reduction before 58

An EPFO member can draw an early pension under the Employees' Pension Scheme (EPS) after retiring at the age of 50. However, the pension in this case will be reduced at the rate of 4% for every year the age falls short of 58 years.

Minister of State for Labour and Employment, Shobha Karandlaje, said the above in a written reply to a query in the Rajya Sabha on Thursday, February 12, 2026.

"However, as per para 12(7) of the Employees’ Pension Scheme 1995, a member, upon exit from employment and having rendered eligible service for pension, can draw an early pension from the age of 50 years. In such cases, the amount of pension is reduced at the rate of four per cent, for every year, the age falls short of 58 years," the minister said.

She also said that no new rules regarding pension from the age of 50 years were introduced in 2025.

She was replying to a question on "whether the rules introduced in 2025 allows EPFO members to draw pension commencing from the age of fifty years."

What the EPS-95 rules say

"A member if he so desires, may be allowed to draw an early pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of four per cent, for every year the age falls short of 58 years," the EPS 1995 rules say.

Interestingly, if a member retiring at 58 defers pension to 60 years then the amount of pension increases at the rate of 4% for every completed years.

"the amount of pension shall be increased at the rate of four per cent. for every completed year after the age of fifty-eight years which shall be restricted to the wage ceiling...," the rules say.

Doorstep DLC

The Employees’ Provident Fund Organization (EPFO) entered into an MoU with India Post Payments Bank (IPPB) to provide free doorstep Aadhar-based Digital Life Certificate (DLC) services to EPS-95 pensioners, who are unable to submit DLC using smartphones or visit banks/EPFO offices. The minister said that Standard Operating Procedures (SOPs) have been issued to field offices for implementation.

Further, the government has also issued instructions to all field offices to popularise Aadhaar-based Face Authentication for DLC submission through facilitation at offices and outreach programmes, including Nidhi Aapke Nikat 2.0.

The EPFO is also posting videos explaining benefits of Aadhaar-based Face Authentication for DLC on various social media platforms like YouTube, Twitter(X), Facebook, Instagram etc.

Pension process

The minister said that currently pensioners' records are maintained digitally and PPOs are also issued digitally which can be accessed through UMANG app.

"With introduction of Centralized Pension Payment System (CPPS), pensioners do not need to physically visit banks to submit any record for starting pension. Thus pension payment commences immediately when PPO is issued. Pensioners can submit life certificates digitally using UMANG app or Jeevan Pramaan app," she said.