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Private sector employees have a portion of their salary deducted and deposited into the Provident Fund (PF) every month. These funds are crucial for their future and retirement. Recently, EPS 2026 was implemented; the Ministry of Labour introduced EPS 2026 on June 29, effectively replacing the old family pension scheme. Following this significant change, EPFO ​​members are wondering how their monthly pension will be calculated.

It is important to note that while the new rule has been implemented, the formula for calculating the monthly pension remains unchanged. The requirement of a minimum of 10 years of service to qualify for the monthly pension is still in effect; in other words, you must have completed 10 years of employment to be eligible.

To qualify for the monthly pension, an employee must be 58 years of age and must have completed 10 years of service—meaning they must have made contributions to the EPS for 10 years. If an employee leaves their job before completing these 10 years, they will not be eligible for the monthly pension benefit.

**Pension amount for 20 years of service**
The EPFO ​​has outlined the formula for calculating the monthly EPS pension. The formula is based on:

Pensionable Salary: Calculated based on the average salary of the last 60 months.

Pensionable Service: The total number of years of contribution to the EPS.

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