EPS 1995 vs EPS 2026: From digital claims to pensions—here’s what has changed; find out the updates in the new scheme..

EPS 1995 vs. EPS 2026: A major change in the Employees' Pension Scheme (EPS) has come into effect for crores of employees in the country's organized sector. The Employees' Pension Scheme (EPS) 2026 became effective on June 29, 2026, replacing the nearly three-decade-old EPS 1995. The new scheme has been formulated in alignment with the Code on Social Security, 2020. Significant changes introduced in the new scheme include digital services, time-bound claim settlement, and the provision of interest in case of delays. Notably, existing employees will not need to re-register; those who are already members of EPS 1995 will automatically be considered members of EPS 2026, and their existing rights and benefits will remain fully secure.

**Changes in Membership**
Under the new EPS 2026 scheme, the membership of all employees already part of the scheme will continue. The scheme will now apply to establishments covered under the Code on Social Security, 2020, whereas EPS 1995 was based on establishments covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. This transition will not negatively impact employee membership. Under the new system, records and services will be digitized, making processes easier than before.

**Employer and Government Contributions**
In the new scheme, the employer's contribution will remain at 8.33% of the pensionable salary, just as before. However, a provision has been made for an increased contribution of up to 9.49% for eligible employees whose salary exceeds ₹15,000 and who fall under the higher pension ambit effective from September 1, 2014. Meanwhile, the Central Government's contribution will also remain at 1.16%, unchanged from the previous arrangement. In other words, there has been no alteration to the contribution made by the government. **Minimum Pension and Other Benefits Remain Unchanged**
All major pension benefits available to employees have been retained in the new EPS 2026 scheme. Benefits such as superannuation pension, early pension, disability pension, widow pension, and other family pension facilities will continue to be provided as before. Similarly, the minimum monthly pension amount has been maintained at ₹1,000; in other words, there is currently no change to the pension amount itself.

**Claim Settlement Within 20 Days**
The most significant change in EPS 2026 concerns the pension claim settlement process. It will now be mandatory to settle pension claims within 20 days. The entire process has been digitized to facilitate this. Under the new system, features such as electronic records, online filing, digital compliance, and claim tracking will be available. This eliminates the need for employees to make repeated visits to offices and makes the entire process more transparent than before.

**12% Interest Payable on Delays**
For the first time, EPS 2026 introduces a special provision in the interest of employees regarding delays in claim settlement. If an employee's pension claim is not settled within the stipulated timeframe without a valid reason, 12% annual interest must be paid on the relevant amount. No such provision existed in the EPS 1995 scheme. Consequently, this change is seen as a major relief for employees and will help ensure timely claim settlement.

**Existing Rights Fully Protected**
Despite the implementation of the new scheme, employees' past service, accumulated benefits, and pension eligibility remain fully secure. The government has clarified that EPS 2026 focuses solely on administrative and technical improvements. It will not affect any rights already accrued by employees.

Overall, the objective of EPS 2026 is to make the pension system more modern, digital, and accountable. Changes such as time-bound claim settlement, interest on delays, online services, and the digitization of records could make the pension process far simpler and more transparent for millions of employees compared to the past.

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