Scheme Overview

The Employees' Pension Scheme (EPS) and Deposit Linked Insurance (EDLI) are statutory components of the Employees' Provident Fund (EPF) administered by the EPFO under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Contributions are mandatorily deducted from both employer and employee wages; a defined portion is allocated to EPS for pension accrual, while the EDLI component provides a non‑contributory life‑insurance cover to eligible members.

Contribution Mechanics

Employers contribute 12% of the employee’s basic wages plus dearness allowance to the EPF. Of this, 8.33% (subject to a wage ceiling of Rs. 15,000 per month) is diverted to EPS, and the remaining 3.67% is retained in the EPF. The EDLI cover is funded entirely by the employer at a rate of 0.5% of the employee’s wages, up to a maximum of Rs. 7 lakh.

Pension Eligibility

Members become eligible for a monthly pension upon attaining the age of 58, provided they have completed a minimum of ten years of credited service. The pension amount is calculated on the basis of the average salary drawn during the last 60 months of service and the total pensionable service rendered.

1. Verify EPF account status and service credit through the Member e‑Sewa portal.
2. Submit pension claim online via the EPFO portal, uploading required documents (service certificate, identity proof, bank details).
3. For EDLI claims, the nominee files an online claim accompanied by death certificate and relationship proof.
4. EPFO processes the claim and disburses pension or insurance amount directly to the bank account on record.