Understanding the Employees Pension Scheme 1995: Amendments and Application Guide

Employees’ Pension Scheme (EPS-95): What You Need to Know in 2025

The Employees' Pension Scheme (EPS-95) is one of the key social security measures in India, offering monthly pensions to workers in the organized sector after retirement. Here’s a detailed breakdown of the scheme, what’s changed over the years, and what members need to do now to secure a higher pension.

What Is EPS-95?

Launched in 1995 under the EPF Act, the scheme provides a pension after retirement to employees who’ve worked in the formal sector.

Employer Contribution: 8.33% of the employee’s salary goes to the pension fund.
Original Salary Cap: Initially ₹5,000/month, later increased to ₹6,500/month.

Key Changes Over the Years

1. 1996 Amendment: Voluntary Higher Contributions

Allowed employees and employers to jointly opt to contribute 8.33% on full salary, not just the capped amount.
But: It required both parties to file a “joint option”—and this had a limited window.

2. 2014 Amendment: Salary Cap Raised

On September 1, 2014, the pensionable salary ceiling increased to ₹15,000/month.
However, new EPF members joining after this date could no longer contribute based on full salary—only on the ₹15,000 cap.
Existing employees (pre-Sept 2014) could continue full-salary contributions only if they had filed the joint option.

Supreme Court Ruling: A Second Chance

Many employees missed the joint option deadline or had their applications rejected. After years of legal battles, the Supreme Court allowed a final window for eligible members to opt for a higher pension.

Deadline to Apply: July 11, 2023
Employer Data Upload: Final deadline extended to January 31, 2025

Who’s Eligible for Higher Pension?

Your Status on 01.09.2014	Filed Joint Option	Contributed on Higher Salary	Eligible for Higher Pension?	What You Should Do
Still working	Yes (but rejected)	Yes	Yes	File pension claim
Still working	No	Yes	Yes	File joint option
Retired before Sept 2014	Yes (but rejected)	Yes	Yes	File pension claim
Retired before Sept 2014	No	—	No	Not eligible

How Is the Pension Calculated?

Before Sept 2014: Pension = (Average last 12 months’ salary × Years of service) ÷ 70
After Sept 2014: Pension = (Average last 60 months’ salary × Years of service) ÷ 70

Minimum Pension Increased

Starting August 1, 2025, the minimum monthly pension under EPS will be ₹7,500/month.

Applies to all current pensioners, including family and dependent pensioners.
No action or application required—the increase is automatic.

How to Apply for Higher Pension

Go to the EPFO Unified Member Portal https://unifiedportal-mem.epfindia.gov.in/memberinterface/
Click: Pension on Higher Salary – Application for Validation of Joint Option
Upload required documents:
- Joint option form
- Salary slips/wage records
- Contribution proof
- Consent to transfer funds (if needed)
- Undertaking (for exempted trusts)
Employer must verify and upload your wage details before Jan 31, 2025.

How to Track Your Application

Go to the EPFO Member Portal
Select: Track Application Status for Pension on Higher Wages
Enter your UAN, PPO number, or application ID
Complete the CAPTCHA and OTP step to view the latest status.

Key Dates to Remember

Milestone	Deadline
Last date to apply for joint option	July 11, 2023 (Closed)
Final deadline for employer uploads	January 31, 2025
Minimum pension increase takes effect	August 1, 2025

Final Takeaway

The EPS-95 scheme is evolving—and now’s the time for eligible employees to secure their rightful pension. With the Supreme Court providing a second chance, and the government increasing the minimum pension, retirees stand to gain more—but only if the correct process is followed and deadlines are met.