Changed jobs before 10 years? Here's what happens to your EPS money under the new pension scheme

The Employees' Pension Scheme (EPS), 2026, which came into effect on June 29, has introduced a key change for EPF members who leave their jobs before completing 10 years of eligible service. While the eligibility criteria for a monthly pension remain unchanged, the revised scheme changes when such members can claim the withdrawal benefit and continues to offer an option to preserve their pensionable service.

Employees enrolled under the Employees' Provident Fund (EPF) become eligible for a monthly pension under the Employees' Pension Scheme (EPS), 2026 after completing at least 10 years of eligible service. Members who satisfy this requirement can claim an early pension if they leave employment before attaining the age of superannuation, subject to the conditions laid down under the scheme.

However, not every employee remains with EPF-covered establishments long enough to complete the 10-year requirement. Many switch jobs, move overseas, become self-employed or leave the workforce before becoming eligible for a monthly pension. For such members, EPS 2026 lays down the options available after they exit service.

Two options for members

Under the new scheme, a member who leaves employment before completing 10 years of eligible service and has not attained the age of superannuation has two choices. The member can either claim a withdrawal benefit or obtain a Scheme Certificate.

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The Scheme Certificate allows members to preserve their eligible service under EPS. If they subsequently join another establishment covered under EPF and EPS, the earlier service can be added to the new service period. This enables employees who frequently change jobs to continue building towards the minimum 10 years of service required for a monthly pension.

New rule delays withdrawal benefit

One of the most significant changes under EPS 2026 relates to the timing of the withdrawal benefit.

Unlike the earlier scheme, where eligible members could seek the withdrawal benefit after exiting service, the revised rules require members to wait before making the claim.

According to the scheme, a member exiting service before attaining the age of superannuation becomes eligible to receive the withdrawal benefit only after the expiry of 36 months from the date on which the last contribution became due, or on attaining the age of superannuation, whichever is earlier.

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The scheme states: "In the case of exit from service before attaining the age of superannuation, the member shall become eligible to avail the withdrawal benefit only after the lapse of thirty-six months from the date on which the last contribution became due or on attaining the age of superannuation, whichever is earlier."

The provision effectively introduces a three-year waiting period for employees who leave EPF-covered employment before becoming eligible for a pension.

How the withdrawal benefit is calculated

EPS 2026 also specifies how the withdrawal benefit is to be calculated. Schedule II of the scheme prescribes factors based on the member's completed months of eligible service.

The amount payable is calculated by multiplying the member's pensionable salary at the time of exit by the factor applicable to the completed period of eligible service.

For instance, if an employee leaves after completing 36 months of eligible service with a pensionable salary of ₹15,000, the withdrawal benefit will be calculated by multiplying ₹15,000 by the corresponding Schedule II factor for 36 months.

For employees who expect to return to EPF-covered employment in the future, opting for a Scheme Certificate may help preserve their accumulated service and improve their chances of qualifying for a monthly pension after completing 10 years. Those who do not plan to rejoin covered employment may instead opt for the withdrawal benefit, keeping in mind that under EPS 2026, it can be claimed only after the newly introduced 36-month waiting period or upon attaining the age of superannuation, whichever occurs earlier.

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