The Ministry of Labour and Employment has notified the Employees' Pension Scheme (EPS), 2026, which takes the place of the earlier Employees' Pension Scheme, 1971, and Employees' Pension Scheme, 1995 (EPS-95). This new scheme is now part of the Code on Social Security, 2020, and came into effect from June 29, 2026, the date of its publication in the gazette.
In the new EPS pension scheme, some provisions like pension formula, employee and employer contributions, and minimum pension remain unchanged. However, changes have been made to areas like pension processing, how the pension fund is invested and a new rule that offers 12% interest if a claim is delayed by the EPFO without a valid reason.
