{"id":4549,"date":"2026-05-29T22:06:43","date_gmt":"2026-05-29T22:06:43","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4549"},"modified":"2026-05-30T02:53:12","modified_gmt":"2026-05-30T02:53:12","slug":"eps-employee-pension-scheme-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/eps-employee-pension-scheme-zoho-payroll\/","title":{"rendered":"EPS (Employee Pension Scheme)"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">The Employee Pension Scheme (EPS) in Zoho Payroll is the pension sub-component of the employer&#8217;s 12% PF contribution. Of the employer&#8217;s 12%, 8.33% goes to EPS (capped at 8.33% of Rs 15,000 = Rs 1,250 per month) and the remaining 3.67% goes to EPF. EPS funds are managed by EPFO and provide a monthly pension to employees after retirement, provided they have 10 years of qualifying service.<\/div>\n<div class=\"gt-section\">\n<h2>EPS Wage Ceiling and Computation<\/h2>\n<p>The EPS contribution is always computed on a wage ceiling of Rs 15,000 per month, regardless of the employee&#8217;s actual PF wages. This cap has been in place since September 2014. Zoho Payroll applies this ceiling automatically, ensuring EPS contribution is always Rs 1,250 per month maximum. Employees cannot voluntarily increase EPS contributions.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>EPS Pension Eligibility<\/h2>\n<p>To receive EPS pension on retirement, an employee must have at least 10 years of qualifying service. Pensionable age is 58, with an option for early pension from age 50 with a reduced payout. EPS does not generate a separate account balance like EPF; instead, it creates a pension entitlement. Zoho Payroll&#8217;s payroll reports show the EPS amount contributed each month.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>EPS vs EPF: Key Differences<\/h2>\n<p>EPF builds a corpus that the employee can withdraw on exit (subject to conditions). EPS provides a monthly pension after retirement and is not withdrawable as a lump sum in most cases. An employee with less than 10 years of service can claim a &#8216;Scheme Certificate&#8217; or withdraw the EPS share. Zoho Payroll tracks both amounts separately in the contribution reports.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee has PF wages of Rs 22,000. EPS contribution = 8.33% of Rs 15,000 = Rs 1,250 (capped). Employer EPF = employer total contribution minus EPS = Rs 2,640 minus Rs 1,250 = Rs 1,390. Zoho Payroll correctly splits the employer&#8217;s 12% into EPF and EPS and shows both in the ECR file.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/pf-provident-fund-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">PF<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/epf-contribution-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">EPF Contribution<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gratuity-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Gratuity<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/payroll-report-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Payroll Report<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is EPS in Zoho Payroll?<\/strong><\/p>\n<p>EPS (Employee Pension Scheme) in Zoho Payroll is the pension component within the employer&#8217;s PF contribution. Of the employer&#8217;s 12% PF contribution, 8.33% (capped at Rs 1,250 per month based on Rs 15,000 ceiling) goes to EPS. Zoho Payroll computes this split automatically and includes it in the monthly EPFO ECR file.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>Can an employee withdraw EPS in Zoho Payroll?<\/strong><\/p>\n<p>EPS is not directly managed within Zoho Payroll but through EPFO. Employees with fewer than 10 years of qualifying service can claim the EPS corpus or obtain a Scheme Certificate on exit. Zoho Payroll provides the monthly EPS contribution amounts in payroll reports to support EPFO-related filings and employee queries.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>EPS in Zoho Payroll is the pension component of the employer&#8217;s PF contribution, where 8.33% of PF wages (capped at Rs 15,000) is directed to the Employee Pension Scheme managed by EPFO.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"EPS (Employee Pension Scheme) | Zoho Payroll Glossary","seo_description":"EPS in Zoho Payroll is the pension component of the employer's PF contribution, where 8.33% of PF wages (capped at Rs 15,000) is directed to the Employee P","seo_keyword":"eps (employee pension scheme) zoho payroll","seo_faqs":"[{\"q\": \"What is EPS in Zoho Payroll?\", \"a\": \"EPS (Employee Pension Scheme) in Zoho Payroll is the pension component within the employer's PF contribution. 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