The formula: (capped salary × years of service) ÷ 70
EPS uses your average monthly salary over the last 60 months of service, capped at ₹15,000 regardless of how much higher your actual salary is, multiplied by your total pensionable service in years, then divided by 70.
A worked example at the salary cap
For an average salary of ₹20,000 (above the ₹15,000 ceiling, so the capped figure of ₹15,000 is used) and 20 years of pensionable service: (₹15,000 × 20) ÷ 70 = ₹4,285.71 per month.
A salary below the cap
The cap only reduces the calculation when salary exceeds it. For an average salary of ₹12,000 (below the ₹15,000 ceiling, so the actual ₹12,000 is used) and the same 20 years: (₹12,000 × 20) ÷ 70 = ₹3,428.57 — noticeably less than the capped-salary example, since the full salary is smaller.
More years of service raises the pension proportionally
Keeping salary at the ₹15,000 cap but extending service to 30 years: (₹15,000 × 30) ÷ 70 = ₹6,428.57 — exactly 1.5 times the 20-year result, since years of service enter the formula as a straight multiplier. Once salary is at or above the cap, service length is the only lever left to increase the pension amount.