Statutory
EPSEmployees' Pension Scheme
EPS is the pension part of PF: 8.33 percent of the employer's contribution, on wages up to ₹15,000, goes to a fund that pays a monthly pension after 58.
Of the employer's 12 percent, 8.33 percent of wages capped at ₹15,000 (so at most ₹1,250 a month) is diverted to EPS. The employee's own contribution goes entirely to the PF account.
Pension is payable after ten years of contributory service, from age 58, or earlier at a reduced rate.
In Indian payroll
The higher-pension option following the 2022 Supreme Court judgment let eligible members contribute EPS on full wages. Most private employees are on the capped scheme.
What is EPS?
EPS is the pension part of PF: 8.33 percent of the employer's contribution, on wages up to ₹15,000, goes to a fund that pays a monthly pension after 58.
Why does EPS matter in Indian payroll?
The higher-pension option following the 2022 Supreme Court judgment let eligible members contribute EPS on full wages. Most private employees are on the capped scheme.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where EPS is handled, on the same employee record as everything else.
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