1. 8.33% of the employer's EPF contribution is (indirectly) transferred to an EPS account, with a monthly cap of Rs.1250/-, which is maintained by EPFO.
2. From 1st Sep, 2014, EPS is applicable only for new EPFO members whose monthly salary (Basic+DA) is less than Rs.15,000/-, but will continue for older members.
3. While switching jobs, these EPS contributions remain with EPFO, which can be withdrawn if the employee has worked for more than 6 months but not completed 10 years in service.
4. However, he can apply for EPS withdrawal only if he is currently unemployed, meaning that he can apply only after quitting his current job and before taking up a new job, and before completion of 10 years total service.
5. The employee does not get the entire accumulated EPS contribution at the time of withdrawal, but as per a pre-tabulated proportion assigned to the 9 service years, which is multiplied to the last drawn salary (Basic +DA) not exceeding Rs.15,000 per month.
6. An alternate option in EPS is filling Form 10C to obtain a Scheme Certificate from EPFO, which mentions the number of service years, and this is submitted to EPFO through your employer.
7. If you leave the job, you will again have to fill Form 10C, whereby EPFO will add the new number of years in the scheme certificate, showing the cumulative service record, and return it to you through your employer.
8. This process of accumulating service periods through scheme certificates continues till final surrender of the Scheme Certificate to EPFO to start getting your monthly pension.
9. As pensionable salary is capped at Rs 15,000 and service period capped at 35 years, maximum monthly pension would be Rs 7,500, irrespective of higher basic salary and service period, as per the formula: (Pensionable salary x Service period) / 70.
10. EPS pension eligibility is 58/50 years and is taxable under the head "Income from Salaries".
2. From 1st Sep, 2014, EPS is applicable only for new EPFO members whose monthly salary (Basic+DA) is less than Rs.15,000/-, but will continue for older members.
3. While switching jobs, these EPS contributions remain with EPFO, which can be withdrawn if the employee has worked for more than 6 months but not completed 10 years in service.
4. However, he can apply for EPS withdrawal only if he is currently unemployed, meaning that he can apply only after quitting his current job and before taking up a new job, and before completion of 10 years total service.
5. The employee does not get the entire accumulated EPS contribution at the time of withdrawal, but as per a pre-tabulated proportion assigned to the 9 service years, which is multiplied to the last drawn salary (Basic +DA) not exceeding Rs.15,000 per month.
6. An alternate option in EPS is filling Form 10C to obtain a Scheme Certificate from EPFO, which mentions the number of service years, and this is submitted to EPFO through your employer.
7. If you leave the job, you will again have to fill Form 10C, whereby EPFO will add the new number of years in the scheme certificate, showing the cumulative service record, and return it to you through your employer.
8. This process of accumulating service periods through scheme certificates continues till final surrender of the Scheme Certificate to EPFO to start getting your monthly pension.
9. As pensionable salary is capped at Rs 15,000 and service period capped at 35 years, maximum monthly pension would be Rs 7,500, irrespective of higher basic salary and service period, as per the formula: (Pensionable salary x Service period) / 70.
10. EPS pension eligibility is 58/50 years and is taxable under the head "Income from Salaries".