EPFO: Everything you need to know about steps to withdraw your EPS amount, including eligibility criteria and the necessary steps for employees with less than or more than 10 years of service.
Read More: EPFO Withdrawal: Step-By-Step Guide To Claim Your Funds Without Employer’s Approval
The Employees’ Provident Fund Organisation (EPFO) manages the Employee Pension Scheme (EPS), a social security program that guarantees a regular pension for workers in the organized sector after reaching a certain age. Generally, the EPS starts providing a pension when the employee turns 58, but one becomes eligible for a regular pension at age 50, albeit with a reduced amount.
Under the EPFO, both the employee and the employer contribute 12% of the employee’s basic salary and Dearness Allowance (DA) to build a retirement and pension corpus. While the employee’s entire contribution goes to the Employees’ Provident Fund (EPF), the employer’s contribution allocates 8.33% to the EPS. After retirement, the plan ensures a steady stream of income.
Read More: Employee Provident Fund: Benefits and how to check your balance
Eligibility for EPS benefits:
To qualify for EPS benefits, you need to meet the following criteria:
- You must be a member of the EPFO.
- You should be at least 50 years old for an early pension and 58 years old for a regular pension.
- If you choose to wait for 2 more years (until you turn 60), you can receive an extra 4% per year on your pension.
- You must have worked for at least 10 years.
How to check your EPS balance?
You can check your EPS balance using your Universal Account Number (UAN) on the EPFO website. First, make sure your UAN is activated. Here’s how to check your balance after activation:
- Visit the official EPFO website: EPFO Website.
- Click on “For Employees” in the “Our Services” menu.
- Click on “Member Passbook” on the next page.
- Enter your User Name (UAN), password, and the captcha code, then click “Login.”
- On the next page, you’ll see different Member IDs. Click on the one you need.
- Your total pension contribution will be shown in the “Pension Contribution” column.
- You can download and print your statement as well.
Read More: EPFO Pension: EPS has 7 different types of pensions – Here’s a complete overview
How to withdraw EPS amount?
EPS withdrawal for employees with less than 10 years of service:
If an individual has worked for less than 10 years, they are eligible to withdraw their EPS amount. However, if the employee is still employed and has not completed ten years of service, they cannot access the EPS funds. The EPS amount can only be withdrawn after leaving the company and before starting a new job.
To withdraw the EPS amount, the employee must submit Form 10C on the EPFO portal. They need to have an active Universal Account Number (UAN), and their KYC details must be linked to it.
For those who have worked for less than six months, they may apply for a scheme certificate, but they will not be allowed to withdraw the EPS amount due to EPFO regulations. The withdrawal amount is proportional to the number of years worked.
EPS withdrawal for employees with more than 10 years of service:
Employees who have completed more than 10 years of service are not eligible for EPS withdrawal benefits. However, they can apply for a scheme certificate by filling out Form 10C.
