Want to know how to withdraw pension contribution in EPF? Or Do you want to know how EPF works? Or how can you withdraw your EPF? Well, here we are to clear all your doubts about EPF. We have explained everything in detail to make the concepts of EPF easier for you.
So, let’s start by understanding what EPF is. (EPS) Employee Pension Scheme popularly known as EPF Pension, is a social security scheme started by (EPFO) Employees Provident Fund Organisation.
The scheme was designed to ensure a regular source of income for employees working in companies and various organisations after retirement age, i.e. 58 years. EPS came into effect in 1995, and new and existing EPF members could join the scheme.
how to withdraw pension contribution in epf
How does EPS work?
As per the recent revisions made to the Employee Pension scheme on 1st September 2014, 12% of the employee salary (basic and dearness allowance) is saved in the employee’s EPF account.
The exact amount of contribution is made by the employer. Out of the employer’s contribution, 8.33% goes to the Employee Pension Scheme, and the rest of the 3.67% added to the employee’s contribution is accumulated to the EPF account.
Rs. 1000 is the minimum value of the pension amount to be given under the Employee Pension Scheme. Employees having a salary less than Rs. 15,000 per month are bound to have an EPF account.
No matter how much the salary of the employee is above 15,000, the employer’s contribution will be limited to 8.33% of 15,000 only, i.e., Rs 1250.
Eligibility for Employee Pension Scheme
To enjoy the benefits of the Employee Pension Scheme- EPS, you need to fulfil the following criteria:-
The person needs to be a member of the Employees provident fund organisation, EPFO.
A person should have worked for at least 10 years of service.
To get an early pension, the person should be 50 years of age. In this case, the pension will be received at a reduced rate. For a regular pension, the age needs to be 58 years.
You also have the option to defer the pension for 2 years and start receiving it after the age of 60 years. In this case, you will get the pension amount at an additional 4% rate each year.
how to withdraw pf pension amount online?
how to withdraw pf online after leaving job Using Aadhaar Card:
You need to have an active UAN (Universal Account Number). To activate UAN, visit the EPFO portal, click on activate UAN. Enter your details like name, mobile number and Aadhar number. Enter the authorization pin sent to your mobile number, and you’re done.
KYC details need to be linked to UAN.
Now fill the details in form 11 and submit them to the employer.
Once done, fill the composite claim form and submit it to the EPF office with an attached cancelled check. The entire PF amount will be sent to your bank account.
Withdrawal without using Aadhaar Card:
If you don’t have an Aadhar card and want to withdraw your EPS amount, you can use your PF number.
If the service period is less than 5 years, submit copies of the 15H/15G Form, whichever is applicable, along with details like PAN card number.
If you don’t have UAN, you can enter your PF account number.
Submit the Composite Claim Form (Non-Aadhaar option) to the EPF office.
There are 4 conditions to be fulfilled in the withdrawal process. Follow all the conditions and select the form and make changes as per these:-
1. If your service period is less than 10 years, you can claim both the EPS and PF amount.
All you need to do is fill the Composite Claim Form and select the option of ‘Final PF balance’ and ‘pension withdrawal’. You can submit Form 10C if you have any plans of resuming work again. You will be given a ‘scheme certificate’ after doing these steps.
2. If you want to withdraw the EPS and PF amount after your service period is more than 10 years.
If you have completed 10 years of service period, you won’t be eligible to withdraw the EPS amount. You are bound to get the pension benefits once you are 58 years old. The scheme certificate can be obtained by filling the 10 C and the Composite Claim Form.
3. If you want to apply for withdrawal of EPS and PF amount once you have completed 10 years of service, you are between 50-58 years of age range.
If you are of the age between 50 and 58 years and have worked for 10 years or more, you can apply for an early pension. Keep in mind that you will get the pension at a reduced rate. You just have to fill the 10 D Form and the Composite Claim Form.
4. If you are over 58 years of age and need to withdraw only PF balance with the entire pension.
If you are over 58 years old, it is quite easy to get the entire pension amount. You have to fill the 10D Form.
Features of Employee Pension Scheme (EPS)
Here are the main features of the EPS scheme:-
As EPS is a scheme by the Indian Government, you don’t need to worry about the risks involved as the returns are guaranteed. There will be no changes in the amount you will get back.
If anyone has a basic salary and DA less than or equal to 15,000, he/she is bound to have an EPS account.
Once you are 50 years old, you can apply to withdraw the EPS, but the amount given to you will be at a reduced rate of interest.
If the widow/widower getting the pension amount gets married again, then the children will be entitled to get the pension amount, and they will be categorised as orphans.
Employees who have EPF accounts will automatically sign up for the EPS scheme.
The lowest limit of the monthly pension amount can’t be less than Rs.1,000.
If the widower/widow of the EPS account holder is getting the pension, they will get it till their death. After their death, children will be entitled to receive the pension till they are 25 years old.
If the child of the account holder receiving the pension is physically challenged, then they will be entitled to receive the pension until their death.
I hope you liked our article on how to withdraw pension contribution in EPF, if you have any comments or suggestions do share them in the comments below.
Frequently Asked Questions
1. Can a member of the Employees’ Pension Scheme change his or her nomination?
Nomination details are of the person to whom the person would want his/her pension to be directed after his/her death. The account holders can easily change the nominee details.
He/ she needs to visit the official website of EPFO, i.e. epfindia.gov.in and log into their account with UAN and password. After that, under the profile section, there will be an option to edit nomination details. You can simply edit the details here and save them.
2. How many years of service should a member of EPS complete in service to be eligible for receiving a pension?
After completing a service period of 10 years, members of an EPS account are eligible to receive a pension. They also need to fulfil the age requirement of having completed 50 to 58 years to be eligible to withdraw the pension.
If the person starts withdrawing the pension after 50 years of age, the rate of interest of the amount will be less. Before 50 years of age, the account holder won’t be eligible for pension withdrawal.
3. How to do an EPS transfer online?
You can easily do the EPS transfer after a job change. Here are the steps to be followed:-
- Login to your EPS account using your UAN number and password.
- Click on the ‘Transfer Request’ option.
- Give your EPF account details.
- You need to provide valid identity proof, which can be an Aadhaar card or PAN card.
- Your registered mobile number should be active.
- You need to have the transfer request attested from your current or previous employer.
- Enter the details of your current employer.
Once you follow the above steps, there will be an automatic transfer of EPS and PF to the new account.
4. Where can I find the EPS account number?
EPS stands for Employee Pension Scheme and every employee having a salary plus DA lesser or equal to 15,000 has to apply for an EPS account. Every EPS account member gets a member ID on the successful creation of his/her EPS account.
You can easily find the EPF account number, also known as member ID, in your account details. Your EPS and EPF contributions will get deposited under the same member ID, also being used as the EPS account number.