The Employees’ Provident Fund (EPF) helps build a retirement corpus for you. You contribute 12% of your salary towards EPF, and your employer matches this contribution. A part of the 12% that your employer pays to EPFO goes towards Employees’ Pension Scheme or EPS.
As per the Employees’ Pension Scheme, 1995, the employer needs to contribute 8.33% of your salary into EPS. But usually the employers’ contribution is 8.33% of the maximum pensionable salary, as per the existing rules, which is ₹15,000.
Since September 2014-15, EPS is applicable only to those who have a salary of less than ₹15,000 at the time of joining the workforce and becoming a member of EPF. But those who have been part of the EPF system before that continue to have EPS. However, the 2014 circular was challenged and it is not yet clear if all the changes have been reversed.
After working for more than 10 years, you are eligible for EPS pension, which starts either at the age of 50 or 58 years, as per your choice. The one that starts at 50 is less than the other.
If you have worked for less than 10 years, and are unemployed for more than two months, you can withdraw the EPS amount.