How the EPS works and how one can avail it: *An employee contributes 12 per cent of his .. basic salary directly towards EPF. *He does not contribute directly towards EPS. *Of the employer's share of 12 per cent, 8.33 per cent is diverted towards the EPS, with a cap of Rs 1,250 (earlier Rs 541) a month. *When the employee switches jobs, the EPF gets transferred to the new employer, but not the EPS. *When the employee switches jobs, the EPS contributions stay with the EPFO. *The employee has the option to either withdraw the EPS amount or carry it forward to the next job. This, however, depends on the length of his service and his age. Less than 10 years in job If an employee has not completed 10 years in service,he can either withdraw the EPS amount, or take the 'scheme certificate'. If he is still working, but hasn't completed 10 years, this, however, is not possible. He can apply only after he has quit his job, i.e., before joining another company. The option to withdraw or take the scheme certificate has to be submitted by filling Form 10C. Recently, the EPFO introduced 'UAN based Form 10C'. This form can only be .only be used by an individual who has furnished employee details to the existing employer in 'Form 11-New', furnishing the Aadhaar, bank details, and after getting the Universal Account Number (UAN) activated by providing a cancelled cheque with name, account number and IFS Code. Currently, UAN based Form 10C can only be used for withdrawal and not for taking the scheme certificate. If you have worked for less than six months, the EPS contributions cannot be withdrawn as the EPFO rules say that for those who have not yet completed 180 days in the organisation, the withdrawal benefit is not admissible. One can, however, apply for the scheme certificate. Scheme certificate Form 10C asks you to choose between the scheme certificate or withdrawal benefit along with filing the date of joining and leaving the company. The EPS money can be withdrawn by an employee or it can be carried forward through a scheme certificate while switching jobs. If you have taken a scheme certificate, submit it to the EPFO through the new employer. When you leave the job, you will again have to fill Form 10C. The EPFO will add the new number of years in the scheme certificate, showing the cumulative service record and give it back to you through your employer. This continues till one reaches the age of 58 and then surrenders the certificate to the EPFO to start getting pension. One may opt for early pension (reduced to that extent) after 50 years provided one has completed 10 years service. More than 10 years of job For an employee, the service for six months or more is treated as one year. Therefore, 9 years and six months will be considered 10 years. Once 10 years are completed, the withdrawal benefit stops and one can only take the scheme certificate from the EPFO by filling the same Form 10C.
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