EPF vs EPS: Same PF, Different Payouts
EPF (Employees' Provident Fund) and EPS (Employees' Pension Scheme) are both part of the same provident fund system. Your contribution goes entirely to EPF; the employer's contribution is split—3.67% to EPF, 8.33% to EPS. EPF gives you a lump sum at withdrawal; EPS gives you a monthly pension after retirement. Understanding the difference helps you plan: EPF is your savings; EPS is your pension. This guide explains EPF vs EPS: contribution split, eligibility, withdrawal, and pension formula.
Key Takeaways
- EPF: Your 12% + employer 3.67%. Lump sum at withdrawal. You own it
- EPS: Employer 8.33% of basic. Monthly pension after 10 yr service, age 58
- Contribution: Employee: all to EPF. Employer: 3.67% EPF, 8.33% EPS
- Pension: Formula: (pensionable salary × years) / 70. Max ~₹7,500 (old rules)
- Both: EPF = lump sum. EPS = monthly income. Complementary
What Is EPF?
EPF is your retirement savings. You contribute 12% of (Basic + DA); employer contributes 3.67% of (Basic + DA) to EPF (the rest 8.33% goes to EPS). The total in your EPF account earns interest (8–8.5% p.a.) and compounds. At retirement, resignation (after 5 years), or unemployment, you get the entire EPF balance as a lump sum. You can also make partial withdrawals for house, medical, education. EPF is portable—transfer when you change jobs.
What Is EPS?
EPS is a pension scheme. The employer's 8.33% of (Basic + DA) goes to EPS—you don't contribute to it. After 10 years of service and reaching 58 (or 50 for reduced pension), you get a monthly pension for life. The pension is calculated as (Pensionable salary × Pensionable service) / 70. Pensionable salary is capped (e.g. ₹15,000 for old members); max pension is ~₹7,500/month under old rules. If you exit before 10 years, you get a lump sum from EPS, not pension.
Contribution Split
📊 Basic + DA = ₹50,000
EPS Pension Formula
EPF vs EPS: Withdrawal
- EPF: Full withdrawal on retirement, resignation (5+ yr), unemployment. Partial for house/medical/education. Portable.
- EPS: Before 10 yr: lump sum. After 10 yr + 58: monthly pension. No lump sum from EPS at retirement (only pension).
Why Both Matter
EPF gives you a lump sum to manage—invest, use for expense, or buy annuity. EPS gives you guaranteed monthly income for life—no investment decision, no longevity risk. Together they provide both corpus and income. Use EPF Calculator for lump sum; EPS Calculator for pension. Plan retirement with both.
Use Our Calculators
EPF Calculator: Project EPF balance. EPS Calculator: Estimate pension. Retirement Planner: Combine EPF + EPS + other sources.
Disclaimer
EPS rules have changed over time. Pensionable salary cap and formula vary by joining date. Verify with EPFO or employer.