(Udaipur Kiran News) The Employees’ Provident Fund Organization (EPFO) has introduced a major reform in the Employees’ Pension Scheme (EPS), ensuring that employees who leave their jobs early will not lose their pension contributions.
What’s New
Earlier, employees who resigned before completing six months of service were considered to have “zero completed years” in EPS. This meant their pension contributions lapsed, and they could only withdraw their Provident Fund (PF) amount along with the employer’s PF contribution.
Now, under the April-May 2024 EPFO circular, even employees with just one month of service can withdraw their EPS contributions while leaving their job. This means their pension money will no longer go to waste.
Who Benefits the Most
This change will particularly help workers in sectors where job changes are frequent—such as retail, BPO, logistics, and contractual jobs. Young employees, trainees, and short-term workers stand to gain the most from this reform.
Example
Suppose an employee worked for five months and contributed ₹3,600 to PF, while the employer deposited ₹2,350 in PF and ₹1,250 in EPS. Earlier, the ₹6,250 EPS contribution would have been lost. Now, under the new rules, the employee will also get this money back.
However, if someone resigns within 15 days, the EPS contribution will still lapse.
What To Do If EPS Money Is Missing
If the EPS amount is not reflected in your PF passbook after leaving your job, you can file a claim using Form 10C with the EPFO. Employees are advised to keep a screenshot or PDF of the passbook as proof.
This rule change is expected to provide greater financial security to millions of employees, especially those in unstable or short-term employment.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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