The Ministry of Labour and Employment has notified the Employees' Pension Scheme, 2026, replacing the earlier Employees' Pension Scheme, 1995 and the Employees' Family Pension Scheme, 1971. The new scheme came into force on June 29, 2026, under the Code on Social Security, 2020, and is administered by the Employees' Provident Fund Organisation (EPFO). Existing pensioners will continue to receive their benefits without any interruption, and members already covered under the earlier schemes automatically remain covered under the new framework.
The core pension structure stays the same — monthly pension is still calculated using the formula (Pensionable Salary × Pensionable Service) ÷ 70, employer contribution remains at 8.33 per cent of wages up to the notified ceiling, and the government continues its 1.16 per cent share. The minimum monthly pension of ₹1,000 also continues. However, the new scheme introduces several operational changes that affect how and when members can access certain benefits.
Employees' Pension Scheme, 2026 - Key Changes
The most significant change relates to withdrawal benefits. Under the earlier scheme, members leaving employment before completing 10 years of eligible service could claim withdrawal benefits relatively quickly. Under EPS 2026, such members must now wait for 36 months from the date the last contribution became due, or until they reach superannuation age — whichever comes first. This change aims to encourage long-term participation in the pension system rather than treating it as a short-term savings option. For members who switch jobs frequently, this could delay access to pension-related funds compared to the earlier framework.
On the positive side, the new scheme introduces a mandatory timeline for pension claim settlements. EPFO must now settle a complete pension claim within 20 days of receiving it, or inform the applicant about any deficiencies within the same period. If a claim is delayed without sufficient reason, interest at 12 per cent per annum will be payable on the benefit amount, recovered from the salary of the responsible EPF commissioner. This is a new safeguard for retirees who previously faced uncertain waiting periods.
The higher pension option, which emerged after Supreme Court rulings and subsequent EPFO implementation, has now been formally written into the scheme itself. For members who exercised this option, the employer contributes 9.49 per cent on wages exceeding ₹15,000, providing greater legal clarity. The scheme also guarantees a minimum 8.5 per cent return on the government's contribution invested in the Public Account from April 1, 2026 onwards.
Eligibility and Membership
Employees who join the Employees' Provident Fund Scheme, 2026 on or after June 29, 2026, and whose wages are within the notified ceiling (currently ₹15,000 per month) are eligible for EPS 2026 membership. Existing members of EPS-95 or the Family Pension Scheme, 1971 automatically continue under the new scheme without any fresh enrolment. Membership continues until the earliest of superannuation age, withdrawal of benefits, death, or pension vesting. International workers are covered through bilateral social security agreements, with service totalisation and cross-border pension disbursement provisions.
Pension Benefits
The scheme provides structured pension benefits depending on the cause and timing of exit. Superannuation pension is payable after completing at least 10 years of eligible service upon attaining superannuation age. Early pension can be claimed from age 50 with 10 years of service, reduced by 4 per cent for each year before superannuation. Disablement pension is available for permanent and total disability during service even without completing minimum qualifying service, provided at least one month's contribution exists.
Family pension benefits follow a clear priority order — spouse first, then children (up to two children at a time, up to 25 years of age, with lifelong benefit for permanently disabled children), orphans at a higher rate where no surviving spouse exists, nominees where no eligible family exists, and dependent parents as residual beneficiaries. The scheme also addresses cases of multiple widows, remarriage, and orphan succession. A member or beneficiary cannot be denied pension merely because the employer failed to deposit contributions.
Members can defer pension beyond superannuation until age 60, with the pension increasing by 4 per cent for each completed year of deferment. Members with 20 or more years of pensionable service continue to receive two extra years of weightage for pension computation. Pensionable wages are calculated as the average of wages earned during the last 60 months before exit, with proportional computation where different wage ceilings applied during the employment period.
| Detail | Information |
|---|---|
| Scheme Name | Employees' Pension Scheme, 2026 |
| Launched By | Ministry of Labour and Employment |
| Effective Date | June 29, 2026 |
| Legal Framework | Code on Social Security, 2020 |
| Replaces | Employees' Pension Scheme, 1995 and Employees' Family Pension Scheme, 1971 |
| Beneficiaries | Organised sector employees covered under EPF |
| Benefit Type | Monthly pension, family pension, withdrawal benefit |
| Minimum Pension | ₹1,000 per month |
| Pension Formula | (Pensionable Salary × Pensionable Service) ÷ 70 |
| Employer Contribution | 8.33% of wages (9.49% for higher pension option on wages above ₹15,000) |
| Government Contribution | 1.16% of wages |
| Claim Settlement Timeline | 20 days (12% interest penalty for delay) |
| Withdrawal Waiting Period | 36 months from last contribution due date |
| Application Mode | Online via EPFO Unified Member Portal |
| Official Website | www.epfindia.gov.in |
Application Process
STEP 1 - Visit the EPFO Unified Member Portal at unifiedportal-mem.epfindia.gov.in/memberinterface/ and activate your UAN by entering your UAN and registered mobile number, then validate the OTP sent to your device.
STEP 2 - Once logged in, go to the 'Manage' section and select 'KYC'. Upload your Aadhaar, PAN, and bank account details. Verification typically takes 3-5 working days.
STEP 3 - After KYC approval, navigate to 'Online Services' and choose 'Pension on Superannuation/Retirement (Form 10D)'. Fill in the required details carefully, upload scanned documents (PDF/JPEG/PNG, maximum 2MB each), and submit using the final OTP verification.
You can track your application status on the portal using your acknowledgement number. For grievances, visit the EPFO grievance page at www.epfindia.gov.in/site_en/Grievance.php or call the toll-free helpline 1800-118-005 (available 8 AM to 8 PM). You can also send an SMS in the format 'EPFOHO ENG' to 7738299899 for quick status updates.
Documents Required
Keep the following documents ready for your pension application:
- Valid identity proof such as Aadhaar card, Passport, or Voter ID
- Bank account details with a cancelled cheque or passbook copy showing IFSC code
- Verified date of birth proof like school certificate or birth certificate
- Death certificate and relationship proof for family pension claims
- Medical disability certificate from an EPFO-authorised doctor for disablement pension
- EPF passbook or employment service records
References
- Employees' Pension Scheme, 1995 Original Notification
- EPS 2026 Gazette Notification (Inspection Charges) S.O. 2701(E)
- EPF Act, 1952 Parent Legislation
- Form 10D Pension Claim Form
- EPFO Official Website
- EPFO Grievance Portal
- KPMG Summary of EPS 2026, EPF 2026 and EDLI 2026 Schemes
FAQ's
What is the minimum service required for pension eligibility under EPS 2026?
You must complete at least 10 years of eligible service to qualify for monthly pension benefits.
Has the pension calculation formula changed in EPS 2026?
No, the monthly pension continues to be calculated as (Pensionable Salary × Pensionable Service) ÷ 70.
What is the new waiting period for withdrawal benefits?
Members leaving employment before becoming eligible for pension must wait 36 months from the date the last contribution became due, or until superannuation age — whichever comes first.
Is the minimum pension amount increased in EPS 2026?
No, the minimum monthly pension remains ₹1,000, unchanged since September 2014.
How long does EPFO take to settle a pension claim now?
EPFO must settle a complete pension claim within 20 days. If delayed without valid reason, 12% annual interest is payable on the benefit amount.
Can existing pensioners continue receiving their pension under the new scheme?
Yes, all pensions already sanctioned under EPS-95 or the Family Pension Scheme, 1971 continue without any interruption under EPS 2026.
Is the higher pension option part of the new scheme?
Yes, the higher pension option has been formally incorporated into EPS 2026, providing statutory recognition for eligible members who exercised the joint option.
What happens to family pension if the claimant faces murder charges?
If charges of murder or abetment of murder are filed against a family pension claimant, payment is withheld until criminal proceedings complete. If convicted, the pension is forfeited and paid to other eligible family members.
How can I contact EPFO for pension-related help?
Call the toll-free helpline 1800-118-005 (8 AM to 8 PM), visit the grievance portal at epfindia.gov.in, or SMS 'EPFOHO ENG' to 7738299899.