EPS 2026: EPFO Scraps Higher Pension on Higher Wages Option
Why in the news
EPFO’s trustees cleared a new pension scheme that drops the chance to pay pension contributions on salary above the wage ceiling.
Key facts
- Approved by the Central Board of Trustees, chaired by Mansukh Mandaviya.
- Removed: Paragraph 11(4) option for wages above ₹15,000 a month.
- That option had to be used within a year of the 2014 amendment.
About EPS
- Pension scheme for organised-sector employees, started in 1995.
- Run by EPFO under the Ministry of Labour and Employment; covers EPF members.
- Pays monthly pension on retirement, disability or to family after the member’s death.
Exam angle
- Original scheme year: 1995.
- Ceiling: ₹15,000.