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The Economic Times

Shaghil Bilali

Retiring soon? How much higher EPS pension will you get after the wage ceiling hike

The Employees’ Provident Fund (EPF) wage ceiling increased from Rs 15,000 to Rs 25,000 with effect from today (Thursday, September 17, 2026). After this rise, many Employees’ Pension Scheme (EPS) members have been wondering how much their monthly pension will increase under the new wage ceiling.

The biggest beneficiaries of the ceiling hike will be the employees who complete five years of pensionable service under the Rs 25,000 ceiling. Pension is calculated on the basis of pensionable salary, which is determined as average 60-month drawn till retirement. So, employees who are with less than five years of service will get only partial benefit in terms of higher EPS pension.

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