If you’ve ever wondered whether your PF contributions can lead to a regular pension, you’re not alone. Many employees don’t realize they’re slowly building retirement support alongside their savings. Let’s simplify how the EPFO pension really works—especially after 10 years of service.
What Is the EPFO Pension Scheme?
The Employees’ Pension Scheme (EPS) is a retirement benefit run by the Employees’ Provident Fund Organisation (EPFO). It’s not something you apply for separately—if you have a PF account through your job, you’re most likely already contributing to it.
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EPS was launched on 16 November 1995, replacing the older Family Pension Scheme (1971). It ensures that private-sector workers also receive a monthly pension—but only if certain conditions are met.
Pension Becomes Available After 10 Years of Service
According to EPFO rules, you become eligible for monthly pension after completing 10 years of service—but you start receiving it only after turning 58 years old.
So if you’ve worked for 10 years under the same UAN (Universal Account Number), you’ve secured a future pension—even if you switch jobs in between, as long as your UAN stays the same.
How PF Contributions Are Divided
Here’s how your salary contributions work if you’re in the private sector:
| Component | Contribution |
|---|---|
| Employee’s share (from salary) | 12% of basic pay |
| Employer’s share | 12% of basic pay |
| From employer’s share: | |
| → 8.33% goes to EPS (Pension) | |
| → 3.67% goes to EPF (Provident Fund) |
Over time, that 8.33% adds up in your pension fund, building the base for your future monthly pension.
What If There’s a Job Gap?
One of the most common concerns:
“Will I still get a pension if I had a break in my career?”
The answer is yes, as long as your total contribution period adds up to 10 years under the same UAN.
Let’s say you worked for 5 years, took a break, and then resumed work again. If your UAN wasn’t changed, your years of service will be counted together. So a gap in employment doesn’t disqualify you.
Why You Should Get a Pension Scheme Certificate
If you’ve stopped working and don’t plan to continue immediately—but you have already completed 10 years of service, make sure to ask for your Pension Scheme Certificate from EPFO.
Here’s why it matters:
- If you take up a new job later, you can link your old EPS account to your new PF number.
- This ensures that your pension calculation continues from where you left off.
- It also protects your EPS contributions from becoming inactive.
Think of it like keeping your pension history safe for future use.
Who Is Eligible for Pension?
| Criteria | Requirement |
|---|---|
| Membership in EPS | Must have PF account |
| Minimum Service | 10 years (combined, not continuous) |
| Age to Start Pension | 58 years |
| Same UAN across jobs | Required to track your service |
Things to Keep in Mind
- Don’t change your UAN if you switch jobs—link your new PF to the same UAN.
- Track your service years through the EPFO portal regularly.
- Apply for Pension Certificate if you’re exiting a job after 10+ years of service.
- You can apply for early pension from age 50, but with a reduced amount.
Frequently Asked Questions
Q: What happens if I work less than 10 years?
If you exit before completing 10 years, you’re not eligible for monthly pension. However, you can still withdraw the pension amount as a lump sum.
Q: Can I claim pension benefits at 58 even if I stop working earlier?
Yes. If you’ve completed 10 years of service and are 58 years old, you can apply for your pension—even if you haven’t worked in the last few years.
Q: Is the pension amount fixed for everyone?
No, it depends on your salary, years of service, and the formula used by EPFO at the time of calculation.
