The Employees’ Provident Fund Organisation (EPFO) continues to be one of India’s most trusted retirement security systems, and with every passing year, more employees are becoming curious about how their pension will grow under the Employees’ Pension Scheme (EPS). As we move towards 2025, new discussions, expectations, and awareness about EPS benefits are rising. Many employees—especially those who have contributed for a decade or more—want to know what exactly changes in their pension structure once they complete 10 years, 15 years, or 20 years of service.
This detailed article breaks down the 4 major benefits employees receive after 10 years of service, followed by the 6 additional bonuses and advantages available after completing 20 years. Written in a natural, human-like manner, the purpose of this guide is to simplify every important detail so that even a first-time EPF member can clearly understand how the EPS system works, how pension is calculated, and how long-term contributions impact retirement income.
What EPFO Pension Actually Means for Employees in 2025
The EPS scheme under EPFO acts as a long-term financial safety net designed to ensure that workers have a guaranteed monthly pension after retirement. Unlike the EPF amount, which can grow significantly because of compounding interest, the pension system follows a formula-based structure. This means your pension does not depend on how much money lies in your EPF account—it depends on service years and pensionable salary.
By 2025, India’s workforce is more aware of retirement planning than ever. Economic uncertainties, rising living costs, and increasing life expectancy have made monthly pensions extremely important for financial stability. That is why understanding what happens after 10, 15, or 20 years of EPS contributions is crucial.
Why 10 Years and 20 Years Are So Important in EPS
There are two main milestones for any EPS member:
- 10 years of service
The minimum years required to qualify for lifelong pension benefits. - 20 years of service
The point at which extra bonuses and credits increase the total pensionable service.
These two milestones determine how much pension you can claim, when you can start receiving it, and how much your final monthly payout could be after retirement.
4 Big Benefits You Get After Completing 10 Years Under EPFO Pension (EPS)
Once an employee completes 10 years of service, they automatically become eligible for a range of essential pension advantages. These benefits are the foundation of EPS 1995 and are applicable to every member who is part of EPFO.
Let’s break each benefit into simple words with detailed explanation.
1. Lifetime Monthly Pension Eligibility
The biggest milestone after 10 years is that the employee now becomes eligible for a lifelong monthly pension, which begins once they reach the official retirement age.
Under EPS rules, even if you leave your job before retirement, as long as you have completed 10 years of service, you can withdraw a document known as the Pension Certificate (Scheme Certificate). This certificate keeps your pension rights intact and allows you to claim your pension later.
This means you no longer lose pension rights even if you switch jobs or take a break in your career.
2. Guaranteed Pension After Age 58
Once the employee reaches 58 years of age, EPFO begins to release monthly pension payments. Unlike EPF, which can be withdrawn in a lump sum, EPS guarantees continuity—pension is paid every month for life.
In 2025, with rising inflation and living costs, the security of a confirmed monthly income becomes extremely valuable, especially for private-sector employees who do not receive government pensions.
3. Option for Early Pension After Age 50
After completing 10 years of service, employees also receive the option of early pension starting at age 50. However, there is a small reduction of the pension amount because it is taken early.
This benefit is extremely helpful for:
- employees who retire early,
- workers who switch careers,
- individuals dealing with health issues, or
- employees who lose jobs later in life.
The flexibility of early pension makes EPS one of the most supportive retirement schemes in India.
4. Family Pension Automatically Activated
The fourth major benefit after 10 years of EPS contributions is the security provided to the employee’s family. In case of the member’s death, the family becomes eligible for monthly family pension, which includes:
- widow pension,
- children pension, and
- orphan pension (if applicable).
This makes EPS not only a retirement support system but also a long-term family protection scheme. Even after the member’s death, the pension continues to support dependents.
6 Extra Bonuses You Receive After Completing 20 Years of Pensionable Service
While completing 10 years gives you the essential eligibility rights, completing 20 years of service unlocks several extra advantages that can significantly increase your monthly pension.
Many employees aren’t aware of these bonuses, but they play a major role in increasing the final pension amount.
Here are the 6 biggest advantages you get at the 20-year mark.
1. Two Years of Bonus Service Added Automatically
Once you complete 20 actual years of service, EPFO automatically adds 2 extra years to your pensionable service.
For example:
- If you worked 20 years, EPFO counts it as 22 years.
- If you completed 23 years, EPFO counts 25 years.
This additional service directly increases your pension because EPS pension is calculated based on the total years of service.
2. Higher Pension Under the EPS Formula
EPS follows this formula:
Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70
So, after 20 years, because of the 2-year bonus and longer contribution duration, your pension increases automatically. The more service years you collect, the stronger your final monthly pension becomes.
Employees who complete 20+ years generally receive significantly higher pension than those who stop at 10–15 years.
3. Stronger Pension After Wage Ceiling Revisions
With frequent discussions about increasing the wage ceiling from ₹15,000 to a higher level, employees with 20 years of service stand to gain the most. Even if the ceiling increases in 2025 or later, your long contribution history means a higher pensionable salary base.
This benefit compounds over time, making long-service employees some of the biggest beneficiaries of EPS reforms.
4. Better Family Pension Benefits Due to Longer Service
The longer your service record, the higher the family pension base amount becomes. This ensures that:
- your spouse,
- children,
- or dependents
receive a more stable and higher monthly pension.
Longer service means the family is much better protected in the long term.
5. Eligibility for Higher Early Pension Calculation
If an employee wants to take early pension after 50, the calculation becomes favorable if they have completed around 20 years. High service years compensate for the reduction applied in early pension.
This means long-term contributors face less decrease in monthly pension even when they choose early retirement.
6. Stronger Claim for Higher Pension Under EPS Higher Pension Scheme
Employees with 20+ years of service become prime candidates for the Higher Pension Scheme, where contributions are based on actual salary instead of EPFO ceilings.
This allows:
- higher contributions,
- higher pensionable salary, and
- significantly higher monthly pension.
By 2025, many employees who complete 20 years are expected to apply for the Higher Pension option once the next official window opens.
How EPFO Pension (EPS) Is Calculated in 2025
To understand the impact of completing 10 or 20 years, the pension formula is essential. EPS uses this:
Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Breakdown:
- Pensionable Salary = average of last 60 months’ salary
- Pensionable Service = total years of contribution
- ÷ 70 = fixed EPS formula constant
This formula makes it clear why 20 years of service gives you a higher pension.Common Mistakes Employees Make in EPS
Many employees unintentionally reduce their pension benefits because they are unaware of certain rules. These common issues include:
- Withdrawing EPF but not collecting the Scheme Certificate
- Changing jobs without transferring PF
- Not checking pensionable service
- Confusing EPF balance with EPS pension
- Not updating Aadhaar or family details in EPFO records
Avoiding these mistakes ensures a smooth pension claim after retirement.
Who Will Benefit the Most from EPFO Pension in 2025?
By 2025, the following groups of employees stand to gain the maximum advantage:
- Workers completing 20+ years of service
- Employees with consistent salary growth
- Long-term private sector employees
- Members eligible for the Higher Pension Scheme
- Individuals planning to retire after 58
The new digital services of EPFO allow faster verification, quicker transfers, and easier pension claims, making the entire process simpler.
Conclusion
The EPFO Pension (EPS) scheme becomes significantly more rewarding once employees complete 10 years and again after 20 years of service. The first milestone provides essential rights such as lifelong pension, early pension, and family pension, while the second milestone unlocks powerful bonuses like extra service years, higher pension calculations, and better final payouts.
For anyone working in the private or government-aided sector, understanding these benefits is crucial. Your pension is not just a number—it is your financial shield during retirement. The more you contribute and the longer you stay in the system, the stronger your pension becomes.