Why errors in your EPS can hit your retirement income
- Sanket Dhanorkar
- TNNUpdated: Apr 28, 2026, 21:04 IST IST
Subscribers of the Employees’ Provident Fund (EPF) diligently track the steadily rising balance in their EPF passbook: the combined pool of their own 12% contribution, a part of the employer’s share (3.67%) and the accumulated interest. But its quieter counterpart, the Employees’ Pension Scheme (EPS), rarely gets the same attention. That neglect may prove costly.
For eligible members, 8.33% of the employer’s contribution is compulsorily diverted to EPS, subject to a wage ceiling. A pension becomes payable at age 58, after 10 years of contributory service is complete. Unlike EPF, however, EPS does not build a visible corpus and cannot be withdrawn as a lump sum. Its low visibility means most employees seldom scan their passbook for EPS entries, allowing errors to slip by that later may lead to serious consequences.
For eligible members, 8.33% of the employer’s contribution is compulsorily diverted to EPS, subject to a wage ceiling. A pension becomes payable at age 58, after 10 years of contributory service is complete. Unlike EPF, however, EPS does not build a visible corpus and cannot be withdrawn as a lump sum. Its low visibility means most employees seldom scan their passbook for EPS entries, allowing errors to slip by that later may lead to serious consequences.
