EPS 2026 Takes Effect: Who Is Eligible, What Has Changed, And What Remains The Same | Details

Last Updated:July 02, 2026, 11:02 IST

The government has notified the Employees' Pension Scheme (EPS) 2026, which replaces the Employees' Pension Scheme, 1971, and the Employees' Pension Scheme, 1995 (EPS-95)

The Ministry of Labour and Employment has notified the Employees’ Pension Scheme (EPS) 2026, which replaces the Employees’ Pension Scheme, 1971, and the Employees’ Pension Scheme, 1995 (EPS-95). The new scheme has been introduced under the Code on Social Security, 2020.

While the new framework retains most of the core provisions –– pension formula, employee and employer contributions and minimum pensions –– it has introduced several changes to enhance pension processing and ensure accountability.

Who Are Eligible?

According to the notification, anyone who becomes a member of the Employees’ Provident Funds Scheme, 2026, or the provident fund of the establishment on or after June 29, 2026, with their wages within the notified ceiling, is eligible, according to The Economic Times.

However, those who were already members of the old pension schemes will automatically be made to continue with the new scheme.

What Has Changed? What Remains Same?

According to an Economic Times report, pensions already approved under the previous schemes will continue to benefit pensioners without interruption. The method of calculating pension remains unchanged –– (Pensionable salary × pensionable service) ÷ 70.

One of the most significant aspects of the EPS 2026 scheme is that there has been no change in the contribution process. While employers will contribute 8.33 per cent of the employee’s wages, the government will continue to contribute 1.16 per cent of the employee’s wages, with both amounts subject to the wage ceiling as notified by the Central Government.

For employees who opted for a higher pension, the effective employer contribution allocated to the pension fund has been increased from the standard 8.33 per cent to 9.49 per cent to cover the additional contribution on the portion of the employee’s salary exceeding Rs 15,000, The Economic Times reported.

Pertinent to note that the additional 1.16 per cent is drawn directly from the employer’s contribution into the overall Provident Fund, ensuring there is no additional financial burden on the employee.

On Pension Claim Settlements

The fresh notification directs EPFO to settle a complete pension claim within 20 days or inform the applicant in case of deficiencies within the same window. If a complete pension claim is delayed without valid reasons, the applicant will be entitled to receive the benefit amount in addition to a 12 per cent interest p.a.

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