The Employees’ Provident Fund Organization (EPFO) has made a big change in the rules of the Employees’ Pension Scheme (EPS). Now, even if an employee leaves the job before six months, his pension contribution will not be lost. Under the new system, employees who have been part of EPFO for at least one month can also withdraw their EPS contribution when leaving the job.
Earlier, service of less than six months in EPS was considered “zero full year.” This means that employees who resigned after 5 months lost their pension contribution. They could only withdraw their own PF and the PF deposited by the company into their account.
What Is the New Rule?
According to an EPFO circular in April-May 2024, members who complete one month of service can also withdraw their EPS contribution. This means employees who leave a job early will still get their pension fund. Their money will not be lost.
Who Will Benefit?
This change is especially helpful for sectors where employees change jobs often or work for a short time. For example, youth and trainees in retail, BPO, logistics, and contract-based jobs who leave on short notice will now get the benefit.
For example, Raunak worked in a private company. His PF account started, and Rs 3,600 was deducted from his salary. The employer deposited Rs 2,350 in PF and Rs 1,250 in EPS. Raunak worked for 5 months and then resigned.
Earlier, his pension contribution of Rs 6,250 would have been lost. Now, under the new rules, he will get it too. If someone resigns within 15 days, the EPS money will still lapse.
What to Do If EPS Money Is Missing
- If you resigned before 6 months and EPS money is not visible in your PF passbook, you can file a complaint with EPFO.
- The EPS amount can be claimed using Form 10C. It is a good idea to save a screenshot or PDF of your passbook as proof.