The Employee Provident Fund (EPF) is a retirement savings scheme in India where both the employer and employee contribute 12% each of the employees pay. However, the employees entire share is contributed towards EPF, while 8.33% of the employers share goes towards the Employee Pension Scheme (EPS) and 3.67% goes towards EPF contribution every month. The EPS is a pension scheme managed by the Employees Provident Fund Organization (EPFO) that provides financial security to employees in the organized sector. It was created in 1995 and ensures that employees will receive a pension after reaching 58 years of age. The employer contributes 8.33% of the employees salary to a maximum of Rs. 1250 towards the pension fund.

To be eligible for availing benefits under the EPS, an individual has to fulfill the following criteria:

• He should be a member of EPFO
• He should have completed 10 years of service
• He has reached the age of 58
• He can also withdraw his EPS at a reduced rate from the age of 50 years
• He can also defer his pension for two years (up to 60 years of age) after which he will get a pension at an additional rate of 4% for each year.

The pension contribution in the EPF passbook is the amount deposited by the employer every month in the EPS account of the employee. The amount of pension in the PF is determined based on the members pensionable salary and length of service. The formula to calculate monthly pension income is (Average salary over the last 12 months of service * pensionable service) / 70.