INCOME TAX19 Sept 2026
EPS pension after ₹25,000 wage ceiling hike: Who can get ₹12,500 monthly? Check out the calculations | Mint
The EPFO wage ceiling for mandatory EPS (Employees' Pension Scheme) cover has risen from ₹15,000 to ₹25,000. This helps salaried employees earning basic pay above ₹15,000 build a bigger pension. The employer's monthly EPS contribution now goes up from ₹1,250 to about ₹2,083. A ₹12,500 pension needs ₹25,000 pensionable salary plus 35 years of service, so check your service record.
Key Statutory Highlights
- The EPFO wage ceiling for mandatory EPS coverage has been raised from ₹15,000 to ₹25,000 a month.
- The employer's EPS contribution rises from ₹1,250 to about ₹2,083 a month under the higher ceiling.
- An estimated ₹12,500 monthly pension needs a ₹25,000 pensionable salary and 35 years of pensionable service, including the two-year service bonus.
Actionable Advice for Taxpayers / Founders:If your basic pay is above ₹15,000, check your EPS service record and contribution history, and confirm with your employer that contributions are now being made at the revised ceiling. The pension you finally get depends on your actual service and contribution period, so treat the ₹12,500 figure only as an estimate.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: