Employees’ Pension Scheme, 2026

The Ministry of Labour and Employment, Government of India, vide notification no. G.S.R. 527(E), dated 29^th June 2026, has announced the Employees’ Pension Scheme, 2026. This scheme will take effect from its publication date, which is 29^th June 2026. It has been enacted under the Code on Social Security, 2020, and will replace the Employees’ Pension Scheme, 1995.

The key features of the Scheme are outlined as follows:
• The wage ceiling remains fixed at Rs 15,000/- per month.

• The employer’s contribution to the Pension Fund will continue to be 8.33% (from the total 12% of wages that constitutes the employer’s contribution), subject to the specified wage ceiling.

• All employees who were members of the Employees’ Pension Scheme, 1995, will continue as members of the Employees’ Pension Scheme, 2026.

• Employees who are not already members of the EPS Scheme and whose monthly wages exceed the established wage ceiling are ineligible to join the EPS Scheme.

• The previous Employees’ Pension Fund Account under the Employees’ Pension Scheme, 1995, will continue to be maintained as the Pension Fund Account under this new Scheme.

• The Central Government will continue to contribute 1.16% of wages to the pension fund, in accordance with the prescribed limits.

• For members who have opted to contribute on higher wages under the EPS, 1995, and are deemed eligible, the employer’s contribution will be 9.49% of the wages of each member. This increased contribution will apply to wages exceeding fifteen thousand rupees per month.

• A stringent 20-day legal deadline is imposed on the EPFO to resolve claims. Should an official delay a valid claim beyond 20 days without a valid justification, a penalty of 12% annual interest will be directly deducted from the responsible official.