EPS Rule: Now the question arises that if the employee has worked in two different institutions for 5-5 years, then what will happen? Or he has also taken a break of two years during two jobs. Then will those employees be entitled to pension?
If you do a private job for 10 years, then you will be entitled to pension. According to EPFO rules, any employee becomes entitled to pension after working for 10 years. There is only one condition to avail the benefits of this scheme, which the employee is required to fulfill.
Actually, a large part of the salary of the people working in the private sector is deducted as PF. Which gets deposited in the employee’s PF account every month. According to the rule, 12 percent of the employee’s basic salary + DA is deposited in the PF account every month.
Out of which the entire share of the employee goes to the EPF, while 8.33% of the employer’s share goes to the Employees’ Pension Scheme (EPS) and 3.67% goes to the EPF contribution every month.
This is the formula…
According to the rules of EPFO, after working continuously for 10 years, the employee becomes entitled to pension. The only condition in this is that the tenure of the job should be completed for 10 years. Service of 9 years and 6 months is also counted as equal to 10 years.
But if the service time is less than 9 and a half years, then only 9 years will be counted. In such a situation, the amount deposited in the Employees Pension Account can be withdrawn even before the age of retirement. Because they are not entitled to pension.
Now the question arises that if the employee has worked in two different organizations for 5-5 years, then what will happen? Or if there was a gap of two years between the two jobs, will that employee be entitled to pension? Because many times people lose their jobs.
Especially women, due to their responsibilities, take a break from the job in between and after a few years, they get hold of the job again. In such a situation, how will his tenure of 10 years be completed and how will he get the benefit of the pension scheme? Let’s know what is the rule?
Know what the rule of EPFO says,
According to EPFO, despite the gap in the job, the tenure of 10 years can be completed by adding all the jobs. But the condition is that the employee should not change his UAN number in every job, the old UAN number will have to be continued. That is, a total tenure of 10 years should be completed on a single UAN.
Because even after changing the job, the UAN remains the same and the entire amount deposited in the PF account will be reflected in the same UAN. If there is a gap of some time between two jobs, then the tenure is considered as one by removing it. That is, the gap between the previous job and the new job is removed, and it is merged with the new job.
Let’s understand from an example… You are working in the present company for the last 5 years. Before this, due to job loss or some other reason, he was sitting at home for about two years. Prior to that, he had spent 6 consecutive years in the institute where he worked. In such a situation, you will have to continue with the old UAN only in the new job.
You will be entitled to pension irrespective of the gap from first job to second job. Because EPFO adds your last 6 years and current 5 years, in between you were without job for 2 years, those two years are removed. In this way, even after working for 5 years in the new company, the tenure of 10 years for pension will be completed, and you will be eligible for pension, then you will be able to get pension every month after retirement.
