If you are employed, the EPFO (Employees’ Provident Fund Organisation) pension scheme, EPS (Employees’ Pension Scheme), is very important for you. The rule states that if you work for at least 10 years in an EPFO-covered company, you can get a monthly pension after retirement. This is a significant financial security for your old age.

But life doesn’t always go straight. Many times, a job is lost or you take a break for some time, and finding a new job takes a little time. In such a situation, a question arises in the mind: Will the 10 years of service be counted from scratch? Will the experience from the previous job go to waste and the dream of getting a pension remain unfulfilled?

Don’t worry, your previous experience will not go to waste!

EPFO rules are designed so that your service continues to add up even if you change jobs or have a gap in between, and your pension eligibility remains intact. The easiest and most important way to do this is – Do not change your UAN (Universal Account Number)!

Whenever you join a new company, provide the same UAN number you had in the previous company to the HR department or wherever PF related information is taken. Your new company will deposit your PF and pension money in the same UAN account. This way, your previous job duration (whether it was 4 years or 7 years) will automatically be added to your new job duration. Thus, you will not need to start the 10 years of service again for pension; instead, the total service of 10 years will be counted.

For example: Suppose you worked in one company for 4 years, then took a break for 2 years, and then worked in another company for 6 years. If you used the same UAN in both places, your total service period will be counted as 4 + 6 = 10 years, and you will become eligible for the EPS pension.

What happens if 10 years of service are not completed and there is no intention to work further?

Suppose you worked for a total of less than 10 years (like 7 or 8 years) and left the job for some reason, and now you do not want to or are unable to do another job covered by EPFO. In this situation, you can withdraw your share deposited in the Pension Account (EPS account) even before your retirement age (usually 58 years).

However, note that you do not get interest on this withdrawn amount like on the EPF (Employees’ Provident Fund) portion. EPS money works in a different way. For service less than 10 years, your ‘pensionable service’ and ‘pension benefit’ are calculated by a fixed formula based on your total service duration and your last salary. Based on this calculation, you can withdraw a lump sum amount before retirement. This amount is different from the monthly pension received as a pension.

Conclusion:

Overall, the rule of 10 years of service for EPFO pension is straightforward, provided you keep your job records together. For this, always keep your UAN safe and use the same UAN from your old company when joining a new job. This small precaution can make a big difference in your retirement financial security.