EPFO: Here's How To Access EPS After Withdrawing PF Amount
The Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) are two major retirement benefits that salaried employees in the private sector are offered. Both schemes are managed by the Employees' Provident Fund Organisation (EPFO).
The government-backed long-term retirement benefit schemes are aimed at enhancing social security for salaried individuals in the private sector. These schemes help EPFO members to build a retirement corpus with small contributions every month during the service period.
While most of the salaried individuals are aware of EPF and know how to withdraw the amount, they often miss out on the EPS corpus. However, it's possible to access your EPS amount even after withdrawing the total EPF corpus after retirement.
Contributions towards EPF vs EPS
As per the existing norms, an employee is required to contribute 12% of the basic salary and Dearness Allowance (DA) towards the EPF on a monthly basis. The employer matches the contribution by providing an equal amount.
The government fixes the EPF interest rate for every financial year. For FY 2024-25, this has been fixed at 8.25%.
However, it must be noted that only a partial amount from the employer's share goes into the EPF scheme, while the remaining is towards the EPS.
To be specific, out of the 12% contribution by the employer, 8.33% goes towards EPS and the remaining amount (3.67%) is deposited into the EPF account.
A key thing to note here is that the employees with a basic salary and DA of more than Rs 15,000 per month are ineligible for EPS. This rule was implemented by the EPFO from September 2014.
Salaried individuals who had been making contributions to the scheme before September 1, 2014, can continue to get the EPS benefits.
The EPFO subscribers who have withdrawn money from the PF accounts can still claim EPS in various ways.
Employees' Pension Scheme: What To know?
There are a few specific things to keep in mind when it comes to EPS withdrawal. A person cannot withdraw EPS if they have not completed at least 10 years of service.
Subscribers remain eligible for early pension before the 58 years of age (but not before 50). In case of early pension, monthly payouts get reduced by 4% for every year the individual's age falls short of 58.
Transferring EPS from one employer to another only means the transfer of service history and not the amount. The passbook usually shows EPS funds for all the employers.
Employees must note that the exempt employers take care of PF only, while EPS contribution is maintained by EPFO. For non-exempt employers, EPFO maintains both.
Steps To Apply For EPS Withdrawal
Login to the EPFO Member e-Sewa portal.
Under 'Online Services' menu, select 'Pension on Superannuation/Retirement (Form 10D)' option.
Fill the pension application form and click 'Save & Preview' option.
Upload all the required documents.
Enter the OTP received on registered mobile number and email. Click on 'Validate OTP & Submit' option.
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