EPF vs EPS: Understand Your Retirement Pension Formula and Rules

• EPF is a lump-sum saving where both employee and employer contribute, received as a single payment post-retirement.
• EPS provides a guaranteed monthly income after retirement, calculated using a specific formula.
• The EPS pension formula is: (Pensionable Service × Pensionable Salary) ÷ 70, with pensionable salary capped at ₹15,000.
• Eligibility for EPS pension requires a minimum of 10 years of service and can be claimed at age 58.
• EPS 1995 scheme also extends pension benefits to family members and nominees, providing crucial social security.

Why It Matters: EPF offers a lump sum, while EPS provides a monthly pension, together forming a strong retirement security net.