Quit too soon for pension? This EPFO rule change means you may still get paid

Employees who left their jobs within six months of joining will no longer lose their pension contributions, thanks to a major shift in rules under the Employees’ Pension Scheme (EPS). 

The EPFO now allows withdrawal of the pension share even for short-term employment, as long as at least one month of contributory service was completed.

Until recently, EPS rules treated any service under six months as “zero completed years,” resulting in automatic forfeiture of the pension component. So, an employee quitting after just five months would see their pension share lapse — even though regular contributions were made.

That has now changed. In internal circulars issued during April–May 2024, the Employees’ Provident Fund Organisation (EPFO) clarified that members with even one month of contributory service are eligible to receive their EPS share upon exit — including in cases of voluntary resignation.

The change brings much-needed relief to high-churn sectors like retail, BPOs, logistics, and contract staffing, where early exits are common. It also protects younger workers and trainees whose short stints previously cost them pension benefits.

Example: An employee who joined in January 2024 and resigned in April 2024 (four months of service) would previously receive only the employee and employer PF shares — the EPS portion would be forfeited. Under the new rule, the full amount, including the EPS contribution, is now payable.

The earlier rule was seen as unjust — especially for those who left jobs due to personal, health, or training-related reasons. Now, even if an employee resigns after just one month, the EPS amount can be claimed through Form 10C.

Next steps for employees:

• Check your PF passbook for EPS contributions if you resigned within six months.
• If the pension share wasn’t paid, raise a grievance with EPFO citing the 2024 clarification.
• Save a screenshot or PDF of your passbook as supporting evidence when applying.