🇮🇳 Pension & Retirement in India

Alastair Samson
Alastair Samson
  • Updated

Oyster policy is denoted in purple.


The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act) applies to specific scheduled factories and establishments that employ at least twenty (20) people and whose employees earn INR15,000 (INR25,000 for the disabled) or less per month at entry level.

This benefit under the Pension Scheme is voluntary for the employees whose salary exceeds INR 15000/- (Indian Rupees Fifteen Thousand only) limit. Both the employer and employee contributions to the Employees’ Provident Fund are 12% of the statutorily-defined wage.

The company can choose to provide pension benefits to its employees as per the Employees’ Pension Scheme, 1995 (“Pension Scheme”). The Pension Scheme is a social security scheme provided by the Employees’ Provident Fund Organization. This Pension Scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of fifty-eight (58) years, subject to fulfillment of certain criteria as specified under the Pension Scheme.

The Indian Supreme Court recently declined to raise the retirement age from 58 to 60 years.

Team members choose whether they want to contribute 12% or INR 1,800 when they join.  Oyster contributes 12% for all team members.  Refer to the Social Security section for details on contribution.



National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed by the Indian government.  This is separate from the EPF and cannot replace it. 

Employees may invest up to 10% of their basic salary and claim tax exemption on the invested amount.

All citizens of India, whether resident or non-resident, between the ages of 18 – 60 are eligible. At this time, employees can only join this scheme through an employer.  Oyster currently does not provide this benefit.


Best in Class

Approximately 24% of companies have a supplementary retirement plan and approximately 5% provide a Defined Benefits plan.

Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request