EPFO Pension: EPF & EPS Explained
In this guide
Step-by-step Process
Understanding EPF and EPS
EPF: Both employee and employer contribute 12% of basic salary. Employee's full 12% goes to EPF. Employer's 12%: 8.33% goes to EPS (Employee Pension Scheme), 3.67% to EPF. EPS gives pension at retirement; EPF gives lump sum. Interest rate: Currently 8.25% p.a. UAN (Universal Account Number) links all EPF accounts.
Access Your EPF Account Online
Login to EPFO member portal (epfindia.gov.in) using UAN and password. Activate UAN if not done: Mobile must be registered with employer, OTP-based activation. View: PF balance, passbook, claim status. Link Aadhaar to UAN for online claims. Ensure KYC (PAN, Aadhaar, bank account) is approved by employer.
EPF Withdrawal Rules
Full withdrawal: Retirement (58 years), Unemployment for 2+ months, Medical emergency. Partial withdrawal: After 5 years for house purchase (up to 36 months wages), marriage/education (50% of share), illness (6 months wages or share + interest). Online claim via Form 31 (partial), Form 19 (full). Tax: Taxable if withdrawn before 5 years of continuous service.
EPS Pension — How It Works
Pension calculation: (Pensionable Salary × Pensionable Service) / 70. Pensionable Salary: Average of last 60 months basic salary (max ₹15,000). Pensionable Service: Years in EPS. Minimum 10 years service needed for pension at 58. Minimum pension: ₹1,000/month. Higher pension option now available if employer contributed on actual salary above ₹15,000.
Transfer EPF When Changing Jobs
Use Form 13 online on EPFO portal for EPF transfer. New employer generates new Member ID but UAN remains same. Composite Claim Form (CCF) available for both transfer and withdrawal online. Transfer completes in 3–20 days. Do not withdraw EPF on job change — it breaks continuity of 5-year service for tax purposes.
Official Government Portals
Common Questions
What is the EPFO higher pension scheme?
Employees who were members before September 2014 and whose employers contributed on actual salary (above ₹15,000 ceiling) could opt for higher pension. The Supreme Court in 2022 allowed this option. EPFO extended the deadline multiple times. If eligible, apply through EPFO employer portal. This significantly increases monthly pension but reduces EPF lump sum.
Was this guide helpful?