EPS 2026: Left your job before completing 10 years? Here’s how your withdrawal benefit will be calculated
Employees’ Provident Fund (EPF) members who leave their jobs before completing 10 years of eligible service under the Employees’ Pension Scheme (EPS) are not entitled to a monthly pension. Instead, they can either claim a withdrawal benefit or opt for a Scheme Certificate that preserves their pensionable service for future employment.
However, the new Employees’ Pension Scheme, 2026, has introduced a key change. Members exiting service before attaining the age of superannuation can claim the withdrawal benefit only after the lapse of 36 months from the date on which the last pension contribution became due, unless they attain the age of superannuation earlier.
The Employees’ Pension Scheme, 2026, notified by the Ministry of Labour and Employment on 29 June 2026, came into force on the same day, replacing the Employees’ Pension Scheme, 1995.
Who can claim the withdrawal benefit?
Paragraph 12 of the Employees’ Pension Scheme, 2026, provides that a member becomes eligible for pension after rendering at least 10 years of eligible service. Members who leave service before completing this period are therefore not eligible for a monthly pension.
Instead, the scheme allows such members to either receive a withdrawal benefit as specified in Table IV of the scheme or obtain a Scheme Certificate, provided they have not attained the age of superannuation.
A Scheme Certificate enables a member to preserve the eligible service already rendered. If the member joins another establishment covered under the Employees’ Provident Funds and Miscellaneous Provisions Act at a later date, the previous eligible service can be counted towards pension eligibility in accordance with the scheme.
The scheme also introduces a waiting period for claiming the withdrawal benefit. It states that where a member exits service before attaining the age of superannuation, the withdrawal benefit becomes payable only after 36 months have elapsed from the date on which the last contribution became due, or on attaining the age of superannuation, whichever is earlier.
How is the withdrawal amount calculated?
The withdrawal benefit is calculated using the formula prescribed in Table IV of the Employees’ Pension Scheme, 2026:
Withdrawal benefit = Pensionable salary × Table IV factor
The applicable factor depends on the number of completed months of eligible service.
For example, if a member exits service after completing 24 months of eligible service and the pensionable salary is ₹15,000, the applicable Table IV factor is 1.99. The withdrawal benefit works out to ₹29,850.
Similarly, if a member leaves after 60 months of eligible service with a pensionable salary of ₹15,000, the applicable factor is 5.02, resulting in a withdrawal benefit of ₹75,300.
The new scheme does not alter the basic principle that members completing at least 10 years of eligible service become eligible for pension benefits. The withdrawal benefit continues to be available only to those who exit before meeting this threshold, while the Scheme Certificate remains an option for members who intend to rejoin covered employment and carry forward their pensionable service.
