If you’re an EPS-95 pensioner, you’ve probably wondered one thing lately: “Will my pension finally increase in 2026 — and by how much?”
Honestly, that question is echoing across thousands of households right now. With the 8th Pay Commission discussions heating up, hopes for a meaningful pension hike are stronger than ever.
Here’s the thing: the Employees’ Pension Scheme (EPS) has always been a lifeline for workers who spent decades building the country’s workforce. So any change — big or small — directly affects daily budgets, medicines, EMI plans, and overall security. Let’s break down what’s expected in 2026 and how your pension amount may change.
What Exactly Is the EPS-95 Pension?
EPS (Employees’ Pension Scheme) is the retirement cushion managed by EPFO.
It’s designed to give workers a stable monthly income after years of service. And it’s not just for retirees — even the family of a deceased worker or someone facing permanent disability gets support under this scheme.
If you’ve ever checked your EPF details, you’ll notice something interesting: employees don’t contribute to EPS — only employers do, along with a small share from the government.
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How Contributions to EPS-95 Actually Work
Most people know EPF deductions happen every month, but here’s how much really enters your EPS account:
| Contribution Source | Percentage | Maximum Monthly Amount |
|---|---|---|
| Employer’s Share to EPS | 8.33% of Basic + DA | ₹1,250 |
| Government Share | 1.16% | Up to ₹174 |
| Employee Contribution | 0% | — |
This contribution continues until retirement and becomes the base for calculating your pension amount.
Who Qualifies for EPS-95 Pension?
Think of EPS eligibility as a three-step gate:
1. You must be an EPFO member
Only registered EPF employees are covered under this pension system.
2. You must complete at least 10 years of service
Those years don’t need to be continuous — breaks are fine as long as the total adds up.
3. Pension starts at age 58
If you want to take it earlier (from age 50), you can — but expect a 4% reduction for each early year.
How Is Your EPS Pension Calculated?
Here’s a simple way to think about it.
EPS pension = (Average Salary × Pensionable Service) ÷ 70
Where:
- Average Salary = Last 60 months’ Basic + DA (max allowed: ₹15,000)
- Pensionable Service = Total years worked (max 35 years)
- If you worked more than 20 years, you get 2 bonus years added
This formula gives most pensioners a monthly amount that commonly falls between ₹1,000 to ₹7,500.
Will EPS-95 Pension Actually Increase in 2026?
Now comes the most important part.
While the final announcement is still awaited, early policy discussions suggest a restructuring in the pension formula once the 8th Pay Commission rolls out.
Here’s what experts expect:
- A higher wage ceiling (currently ₹15,000)
- A revised multiplier for pension calculation
- Better minimum pension—possibly above ₹1,000
- More weightage for long service years
