New Delhi, Sept. 19 -- The Employees' Pension Scheme (EPS) has now become more meaningful for salaried employees after the EPFO wage ceiling for mandatory coverage was raised from Rs.15,000 to Rs.25,000.

The higher ceiling can help increase the salary utilised in calculating retirement benefits, but the full benefit will ultimately depend on an employee's pensionable service and on how long they contribute under the revised ceiling.

Under the EPS formula, the monthly pension is calculated as:

Furthermore, as a matter of rule, pensionable salary is generally also based on the average salary during the last 60 months before retirement or exit, subject to the applicable rules and ceiling.

An employee can receive an estimated Rs.12,500 mo...