InvestorQ : What happens to an individual’s retirement amount if the individual retires before becoming eligible for Employees’ Pension Scheme (EPS)?
vani Patil made post

What happens to an individual’s retirement amount if the individual retires before becoming eligible for Employees’ Pension Scheme (EPS)?

Answer
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Anusha Savla answered.
1 year ago


The Employees’ Pension Scheme (EPS) is a social security scheme provided by the Employees Provident Fund Organisation (EPFO) to build a retirement corpus for an individual.

Under this scheme, the individual contributes 12% of his/her salary towards EPF, and the employer matches this contribution. According to the Employees’ Pension Scheme, 1995, an employer needs to contribute 8.33% of an individual’s salary into EPS. But usually the employers’ contribution is 8.33% of the maximum pensionable salary, as per the existing rules, which is Rs 15,000.

The EPS makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years.

However, if an individual retires before completing 10 years in service, which is mandatory to be eligible for EPS, then he/she can withdraw the complete sum at the age of 58 years by filling Form 10C.

Do note, however, that the individual will not get any monthly pension benefits post his/her retirement.