EPFO Employees' Pension Scheme (EPS-95) Rules (2026)
The Employees' Pension Scheme (EPS) is managed by the Employees' Provident Fund Organisation (EPFO) for organized sector employees in India.
| Parameter | Standard EPS Scheme | Higher Pension Scheme (Supreme Court Order) |
|---|---|---|
| Wage Ceiling | ₹15,000 / month | Actual Basic + DA (No Cap) |
| Employer EPS Contribution | 8.33% of ₹15k (Max ₹1,250/mo) | 8.33% of Actual Basic + 1.16% Additional |
| Max Monthly Pension | ₹7,500 / month | Proportional to Actual High Salary |
Basic vs Diluted Earnings Per Share (EPS)
- Basic EPS: (Net Profit After Tax - Preferred Dividends) / Weighted Average Outstanding Common Shares.
- Diluted EPS: Factors in potential share dilution from convertible debentures, stock options (ESOPs), and warrants.
Role of EPS in Stock Valuation Metrics
- P/E Ratio Backbone: Price-to-Earnings = Stock Price / EPS. High EPS growth drives stock price appreciation.
- Earnings Quality Audit: Ensure EPS growth is driven by core operational revenue rather than one-off asset sales or share buybacks.
EPS Growth Benchmark
Target companies demonstrating consistent 15%+ YoY EPS growth over 5 consecutive years for long-term compounder portfolios.