The Employees’ Provident Fund (EPFO) is more than just a retirement savings tool—it’s a cornerstone of financial security for salaried employees. But what happens if you leave your job after 10 years? Let’s break it down.
1️⃣ Understanding EPFO Pension
· The Employees’ Pension Scheme (EPS) is linked to EPF contributions.
· Every month, a portion of your salary goes into EPS to provide a monthly pension after retirement.
· Pension depends on years of service and average salary during service.
2️⃣ Minimum service Requirement for Pension
· To qualify for a full pension, an employee must serve at least 10 years in one or multiple companies under EPS.
· If you leave before completing 10 years, you won’t get a monthly pension, but you can withdraw your EPS contribution.
3️⃣ What Happens After 10 Years of Service
· If you complete 10 years or more, you become eligible for a monthly pension after turning 58.
· Even if you change jobs, your EPS contributions are transferred automatically to your new EPF account using Universal Account Number (UAN).
· Your pension amount is calculated based on your final salary and total years of service.
4️⃣ Pension Withdrawal Options
· If you leave the job after 10 years but before retirement, you can:
1. Continue EPS account and claim pension later.
2. Opt for partial withdrawal or EPS transfer to the new employer.
· This ensures your future pension is not lost even if you switch jobs.
5️⃣ Key Points to Remember
· Maintain an active UAN for smooth transfer of EPS contributions.
· Inform your new employer about your previous EPS account to avoid delays.
· Check your EPFO passbook regularly to ensure contributions are properly credited.
✅ Bottom Line
Leaving a company after 10 years does not mean losing your pension. By keeping your EPF and EPS accounts active and transferring contributions correctly, you can secure a steady pension after retirement.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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