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Retirement

What is EPS?

Updated 20 August 2026

Employee Pension Scheme — a portion of the employer's EPF contribution set aside to provide a monthly pension to employees after retirement.

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EPS, or Employee Pension Scheme, is a smaller component carved out of your employer's EPF contribution — specifically, a fixed percentage of the employer's share (not the employee's) is diverted into this separate pension fund, rather than going into your regular EPF balance that earns compound interest and can be withdrawn as a lump sum.

Unlike EPF, which builds up as a lump sum corpus you can withdraw, EPS is designed to provide you with a monthly pension after retirement, once you've completed a minimum number of years of eligible service, typically 10 years. The monthly pension amount is calculated using a formula based on your pensionable salary and years of service, and this pension continues for life once it begins, offering a modest but guaranteed monthly income stream in retirement.