The Employee Pension Scheme (EPS), started by the Government of India in 1995, aims to provide pension and social security benefits to organised sector workers. It is important to understand how to withdraw pension contributions, whether for emergencies or future financial planning. Both online and offline processes make fund access simple. The EPS ensures a stable income after retirement, making it important to understand how the pension withdrawal process works.

What is the Employees’ Pension Scheme (EPS)?

The Employees’ Pension Scheme (EPS) is a social security scheme under the Employees’ Provident Fund Organisation that provides a regular pension to employees in the organised sector after retirement. Under the EPS scheme it includes:

• Employer contribution: The employer contributes 12% of the employee’s basic salary plus DA to EPF. Out of this, 8.33% is allocated to EPS (up to a salary limit of ₹15,000), and the remaining amount goes to the EPF account.

EPF contributions are generally mandatory for salaried employees earning ₹15,000 or less per month.

• Pension benefits: After retirement, employees receive a monthly pension, which depends on their years of service and last drawn salary.

Features of the Employee Pension Scheme (EPS)

• Provides pension benefits after 58 years of age with at least 10 years of service
• Under EPF, both employer and employee each contribute 12% of the basic salary plus DA.
• The employee’s share goes to EPF, while 8.33% of the employer’s contribution goes to EPS, and the Government of India contributes 1.16%
• To receive pension benefits, you must be a member of the Employees’ Provident Fund Organisation and earn up to ₹15,000 per month (higher earners can opt voluntarily)
• Offers risk-free and guaranteed returns as it is a government-backed scheme
• Retired employees receive a minimum pension of ₹1,000 per month under EPS.

Eligibility Criteria to Withdraw Pension in EPS

The Employees’ Pension Scheme (EPS) is available to employees covered under EPF and is managed by the Employees’ Provident Fund Organisation. It helps employees receive a monthly pension after retirement.

Here are the eligibility conditions to avail EPS benefits:

• You should be registered with the Employees’ Provident Fund Organisation.
• You should have completed at least 10 years of service
• You can start receiving early pension from age 50, but at a reduced rate
• The standard age to receive full pension is 58 years
• If you delay claiming pension up to age 60, you can get an additional 4% increase per year in the pension amount

How to Withdraw Pension Contribution from PF?

An EPFO member can withdraw their PF balance and receive the EPS amount after retirement as per the rules of the EPF. To withdraw your pension, you need to submit the required forms.

• Form 10D: Required to receive a monthly pension after the age of 50 or 58
• Form 10C: Used to withdraw pension contribution if you have less than 10 years of service
• Form 31: Used for partial withdrawal from your EPF account

You can withdraw your amount online or offline, depending on your convenience.

How to Withdraw EPF Pension Online

Here is a simple step-by-step process:

Step 1: Go to the official website of the Employees’ Provident Fund Organisation and go to the “Services” and then “For Employees” section.

Step 2: Click on “Member UAN/Online Service (OCS/OTCP)” and log in using your UAN and password.

Step 3: Go to “Online Services” and select “Claim (Form-31, 19, 10C & 10D)”.

Step 4: Enter the required details, verify your bank account number, and choose the correct form based on your requirement.

Step 5: Click on “Validate OTP and Submit Claim Form” to complete the process.

Once submitted, your claim will be processed, and you can track the status on the portal.

How to Withdraw Pension Contribution Offline

Step 1: Download Form 10C or Form 10D from the official website of the Employees’ Provident Fund Organisation.

Step 2: Carefully fill the form and attach self-attested documents like identity proof, address proof, and bank statement.

Step 3: Visit your nearest EPFO office and submit the form with all necessary documents.

Can you withdraw your PF pension or EPS amount before completing 10 years of service?

Yes, you can claim both PF and EPS amounts if you have not completed 10 years of service. For this, you need to fill the Composite Claim Form and select both options – ‘Final PF balance’ and ‘Pension withdrawal’.

If you plan to work again in the future, you can submit Form 10C and obtain a scheme certificate instead of withdrawing the pension amount.

Can I Withdraw EPF/EPS after 10 years of service?

After 10 years of service, EPS withdrawal is not allowed. You can apply for a scheme certificate through Form 10C, and your pension will start at age 58.

Can I Withdraw PF/EPS between age 50–58?

Employees between 50 and 58 years with at least 10 years of service can opt for early pension by filling Form 10D and the Composite Claim Form.

Can I  Withdraw full PF pension after age 58?

At the age of 58, you can claim your full pension by submitting Form 10D. After submission, your pension and EPF benefits will begin.

How is Pension Amount Calculated Under EPS?

Before understanding how to withdraw pension, it is important to know how the amount is calculated. Under EPS, your pension mainly depends on your salary and total years of service.

On the other hand EPF, employees do not contribute directly to EPS. Only 8.33% of the employer’s contribution (from the total 12%) is allocated to EPS under the Employees’ Provident Fund Organisation.

Pension Calculation Formula-

EPS = (Pensionable Salary × Service Period) ÷ 70

• Pensionable Salary: Pensionable salary means the average monthly salary earned in the last 12 months before leaving the job.

The employer contributes 8.33% of your salary to EPS. For example, if your salary is ₹12,000, the EPS contribution will be ₹999.6 (8.33% of ₹12,000).

If there are any unpaid or non-working days during this period, they are not counted, and the salary is adjusted accordingly.

• Service Period: It is the total number of years you have worked. If you have changed jobs, all your work periods are added together to calculate your total service. If there are extra months in the total, the service period is rounded to the nearest year.

Tax Provisions on EPS Withdrawal

EPS withdrawal is taxable under the Income Tax Act, 1961. If you withdraw before the age of 58, 25% of the amount is tax-free, while the remaining portion is taxable. The exact tax depends on your income and situation.

Also, if you leave your job and do not withdraw or transfer your EPF, the interest earned may become taxable. So, it is advisable to either withdraw your PF or transfer it to your new employer.

Conclusion

The Employees’ Pension Scheme (EPS) helps provide financial support after retirement. It is managed by the Employees’ Provident Fund Organisation and gives regular income to employees in the organised sector.

Understanding how to withdraw EPS, along with its rules and requirements, helps you avoid delays. Whether you switch jobs or plan retirement, it helps you manage your money better.

FAQs

1. How long does it take to receive the EPS withdrawal amount?

After submitting your claim, the Employees’ Provident Fund Organisation usually processes it within 15–20 days, provided all details are correct.

2. Can I withdraw EPS amount before completing 10 years of service?

Yes, if you have worked for more than 6 months but less than 10 years, you can withdraw your EPS amount by submitting Form 10C after 2 months of unemployment.

3. What happens if I complete 10 years of service in EPS?

If you complete 10 years of service, you cannot withdraw the EPS amount. Instead, you will receive a monthly pension after the age of 58.

4. Can I withdraw both EPF and EPS together?

Yes, if your service is less than 10 years, you can withdraw both EPF and EPS by selecting the appropriate options in the Composite Claim Form.

5. Is it possible to withdraw EPS online?

Yes, you can withdraw EPS online through the EPFO portal using your UAN and KYC-verified details.

6. What is Form 10C and when is it used?

Form 10C is used to withdraw EPS amount or obtain a scheme certificate if your service is less than 10 years.

7. What is Form 10D used for in EPS?

Form 10D is used to claim monthly pension after reaching eligible age (50 or 58 years).

8. Can I get a pension before the age of 58?

Yes, you can opt for early pension after age 50, but the pension amount will be reduced.

9. How is EPS pension calculated?

EPS pension is calculated using the formula:

(Pensionable Salary × Service Period) ÷ 70

10. Is EPS withdrawal taxable?

Yes, EPS withdrawal is taxable. If you withdraw before 58 years, 25% is tax-free and the remaining amount is taxable as per the Income Tax Act, 1961.

11. What documents are required for EPS withdrawal?

You need ID proof, address proof, bank details, and your UAN with verified KYC to withdraw the amount.

12. Can I delay my EPS pension?

Yes, you can delay your pension up to 60 years and get an extra 4% increase per year.

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