Employees are always curious about the rules of EPFO. EPFO works for the employees to support their lives during their old age. EPFO provides an amount of pension to support them. But, what will happen if you discontinue your current job? After discounting the current job, will you available to receive pension from EPFO? These kind of questions are always remains on mind. This article will help to clear all the doubts.
What is the rule of you discontinue your job
To receive a pension (EPS) under the EPFO, an employee must have completed at least 10 years of continuous service. This means that if you have worked continuously for 10 years in an organization, you become eligible to receive a pension after retirement. This rule is permanent and applies to all EPF holders. If you have a gap of a few years in your job, there is no need to panic. Just make sure you retain your UAN (Universal Account Number). Upon getting a new job, reactivate the same UAN so that your new employer’s contributions can be linked to your old EPF account.
This way, your previous service period will be added to your total service period for pension, and you won’t have to start counting 10 years again. If you haven’t completed 10 years of service and don’t plan to work again, you won’t suffer any loss. You can withdraw the amount from your pension account, although it doesn’t earn interest. This amount is determined based on your total years of service and your last salary.
However, if you plan to work in the future, it’s best to keep your UAN active so that your past service counts for pension. The EPFO system is now more flexible than before. Just make sure your UAN number is never deactivated, as it is the true passport to your pension.