Categories: EPF and PPF

All about EPS Scheme Certificate

Do you know what is EPS Scheme Certificate of your EPF Account? Many employees unaware of EPS and EPS Scheme Certificate. Let us discuss more about this in this post.

Before proceeding further, first, let us understand how your EPF contribution is divided. I have written a detailed post in this regard earlier (Employee Provident Fund (EPF)-Changed rules from 1st Sept 2014“. However, I will again show you in detail about your and your employer EPF contribution is split.

You notice that employee is not at all contributing to EPS. However, an employer contribution of 8.33% from 12% is going towards the EPS. Few points related to EPS are as below.

  • An employee will not contribute to EPS. However, employer’s 8.33% contribution is going towards EPS.
  • EPS will not earn a single rupee of interest!! Yes, you heard it right. Your EPF will earn the interest as per the yearly declaration by Government. However, EPS is IDLE amount without adding a single rupee to it.
  • Whether EPF is managed by EPFO or your employer (a Trust), EPS is always managed by EPFO.
  • If you have worked for less than 6 months, then you are not eligible for EPS withdrawal. Because as per the EPFO rule, those who have not yet completed 180 days in the organization, the withdrawal benefit is not admissible. One can, however, apply for the scheme certificate.
  • However, when you switch the job, then you have an option either to withdraw the EPS amount or carry forward with your new job. Remember that this EPS withdrawal again depends on the length of the service.
  • If you have not completed the 10 years of service, then you have an option to either withdraw EPS or apply for scheme certificate.
  • However, if you have completed 10 years of service, then you are not allowed to withdraw the EPS. You have to apply for EPS Scheme Certificate.
  • If you are withdrawing the EPS before the completion of 10 years, then you will not receive the full EPS contribution. The EPS withdrawal, in this case, depends on Table D of EPS. It is some % of your EPS balance based on the length of your service. Assume your salary at the time of EPS withdrawal after 9 years, by filing form 10C, is Rs 15,000, then the EPS money one receives is Rs 1,39,950,300 (Rs 15,000 * 9.33). Refer below image for the same.

  • Pension begins at the age of 58 years. To avail the pension, one needs to fill Form 10D through the last Employer.
  • EPS contribution cannot exceed Rs.1,250 in any given month. Because it is capped at 8.3% of Rs.15,000 (A maximum salary ). Here salary means only Basic+DA.
  • Do remember that if you are contributing to EPF, then you are also the member of EPS.

What is EPS Scheme Certificate?

EPS Scheme certificate is a certificate issued by EPFO. It provides the details of service of the EPF member (an employee). The EPS Scheme Certificate shows the service and family details of an employee member who are eligible to get EPF pension in case of death of the member. EPS Scheme Certificate is also an authentic record of service. Because it shows the history of your employment.

Below is an example of one such EPS Scheme Certificate.

How the length of the service is considered of an employee to issue EPS Scheme Certificate?

Your length of the service is rounded off if the months are more than 6 months. Assume that you have completed 5 years and 4 months, then the service period is considered as 5 years only.

However, if your service period is 9 years and 6 months, then your service is considered as 10 years for consideration.

When can an employee apply for EPS Scheme Certificate?

As I explained above, if you have completed less than 10 years of service, then you are eligible either to withdraw the EPS or apply for EPS Scheme Certificate. However, if you have completed more than 10 years of service, then you have to apply for EPS Scheme Certificate and you are not allowed to withdraw the EPS.

Suppose you are joining a new company, then you can surrender the scheme certificate through the new employer and by doing so your past service will be added to the new service and your pensionable service would be cumulated.

Let me give you a detailed possibility of an employee applying for EPS Scheme Certificate.

# If your age is less than 50 years of age and you have not completed the 10 years of service

In such situation, you have an option either to withdraw the EPS (as per Table D) or apply for Scheme Certificate by using the Form 10C.

# If your age is less than 50 years of age and you have completed the 10 years of service

In such situation, you have no other option but to apply for EPS Scheme Certificate using the Form 10C.

# If your age is more than 50 years but less than 58 years of age and you have not completed the 10 years of service

In such situation, you have an option either to withdraw the EPS (as per Table D) or apply for Scheme Certificate by using the Form 10C.

# If your age is more than 50 years but less than 58 years of age and you have completed more than the 10 years of service

In such situation, you have no other option but to either apply for EPS Scheme Certificate using the Form 10C or for reduced pension using Form 10D.

# If your age is more than 58 years of age but your service is less than 10 years

You can withdraw the EPS using the Form 10C.

# If your age is more than 58 years of age and your service is more than 10 years

You have to apply for pension using Form 10D.

How to apply for EPS Scheme Certificate?

Once you are leaving the job, then you have to fill the Form 10C. Here, there are options either to withdraw EPS or apply for EPS Scheme Certificate.

Your employer sends the same to EPFO and then EPFO will issue you an EPS Scheme Certificate. If your all inputs are correct, then EPFO will issue you the EPS Scheme Certificate within a month or so.

EPS Scheme Certificate when you join the new company

When you join the new company, then if your length of service is less than 10 years, then you can opt for EPS Scheme Certificate or can withdraw.

However, if your length of service is more than 10 years, then you have to apply for EPS Scheme Certificate through your past employer.

When you join the new company, then you have to fill the Form 11 (which is also called a new joinee form of EPF). This is a self-declaration by an employee about the status of his EPF details.

While submitting this form you have to submit the EPS Scheme Certificate to EPFO through your 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.

You have to do this till you reach the age of 58 and then surrenders the certificate to the EPFO to start getting the pension.  Or One may opt for an early pension (reduced to the extent) after 50 years provided one has completed 10 years of service.

How much pension can one receive under EPS?

As I already explained in above post, the maximum contribution to EPS by the employer is capped at Rs.1,250 or 8.33% of your actual salary (whichever is less).

Do remember that to be eligible for the pension (for a lifetime and then family pension), one has to work for a minimum of 10 years. Also, your pension will start at the age of 58 years of your age.

The pension that you will receive is capped and is based on the following formula:

(Pensionable Salary * service period) / 70

The pensionable salary is capped at Rs 15,000 and service period at 35 years. Hence, irrespective of the actual years and the basic salary, the maximum monthly pension would be Rs 7,500.

How to apply for EPS Pension?

Once you complete the service of 10 years, then you get the scheme certificate. This scheme certificate can be used to claim your pension either from 58/50 Yrs.

The employee has to include all his past services to arrive at such 10 yrs of service and apply for the pension once he attains the age of 58/50. He needs to fill the Form 10D and get attested by that bank manager with photo and other required documents. Submit the form to concerned EPFO.

What happens to EPS when you switch the job?

When you switch the job, then you apply for EPF transfer request. But to the surprise, EPF is transferred but EPS field showing ZERO right?

You no need to worry. Because this is what the EPFO response in this regard.

‘When PF is transferred from one organization to another, service details information such as non-contributory period, service length, wage last drawn etc. are sent over using Annexure K to the receiving PF office. These details are used for EPS calculation and hence, the total amount accrued in the pension fund is not mentioned in the UAN passbook.’

Hope this much information is enough for you all to know about EPS Scheme Certificate.

Refer my earlier post related to EPS:-

BasuNivesh

View Comments

  • I have old 10 C for the period of 1986 to 2008,

    I could not integrate it with my next employer. However, now my total services with all the companies are around 31 years, but still struggling to enable my pension...

  • I have 5pf account transferred 3 account and claimed present company and 10c settled now I have transferred balance 2account to present company Can't claim 10c what to do sir plz help sir

  • Worked at three places A, B, and C. I retired now. Worked for 20 years at an employer A. While taking compulsory retirement in 2005 was given a scheme certificate. I didn't know anything about the scheme certificate and then joined employer B. Never showed the scheme certificate for fear of being manipulated by my employer. I left the employer and joined employer C didn't tell them about the scheme certificate. worked for 7 months and left taking up small jobs in between the 3 employers. I waited for retirement. My PF agent submitted the scheme certificate along with the 10D form to the office. It was rejected as they gave me two uan numbers. I was harassed by B and C employer.I realized Emp B is Chennai-based but has an office in Mumbai. The B employer has applied for the withdrawal of the second account. Please suggest how should I go about claiming pension from employers A and C. Could you guide me with the procedure forms to be filled? (2) Is it imp to take the employer's letter for submitting the scheme certificate? For changing my father's and my name.I wrote the letters and gave them as they didn't employ English-speaking staff. so could you guide me I have written a long letter.

  • Hi!
    Your article is very informative. But, I still have a query.
    I had worked in Company A for 14 years (1991 to 2005) and in Company B also for 14 years (2005 to 2019). When I quit Company A and joined Company B, instead of transferring my PF, I withdrew the amount. Now, when I applied for EPS pension, the EPFO has asked me to submit Scheme Certificate for my earlier PF account. Please advise me how to get the Scheme Certificate after so many years, and from whom. I didn't have a UAN for the first PF account.

    Thanks

    • Sir,
      I worked with one company from 24 January89 to 13 May 2011. As my contribution to EPS started from November95. At that period, there was no UAN. I joined another company from 17 May 2017. Meanwhile, I withdrew PF amount and applied for Pension. I did not have knowledge of scheme Certificate. My pension started from November17 after generating PPO and continue.58 years of my age completed on 15 October'2021. PF amount is deposing in Trust. There are UAN and PF no. Two month before I applied for Pension under Form 10 D. Sir, I am eligible for second pension. Kindly advise.
      Regards,

      • Dear Pramod,
        I strongly suggest you to visit the regional EPFO and check the status of first employment EPS.

      • Hi Nivesh,
        Thanks for this informative write-up on EPS but still I have a query.
        I have been issued Scheme certificate by my previous employer. I want to withdraw this amount. What is the process of doing so. I am currently not employed as I have started my own business. Thanks.

        • Dear Pankaj,
          You can't withdraw the EPS once the scheme certificate is issued. You can only avail pension when you retire.

  • Hi Nivesh,

    I am facing an issue with my EPS transfer and searching for expert advice on the internet for the same. While doing so, I came across your website regarding the insights on EPS. It's quite informative.

    I am sharing my scenario with you as mentioned below. Please suggest me the best option to resolve this issue :-

    1) I worked for company A, B & C.
    2) My total service of combining all 3 companies is more than 10 years.
    3) I received the Scheme Certificate from company B.
    4) Now what should I do to transfer my pensionable service from A & B to C? Shall I take any of the below options :-
    Option 1 : Transfer Service period from company A to Company C through Form-13. And Submit the Scheme certificate of company B to Company C.
    Option 2 : Ask for a Scheme certificate from Company A as well. And then submit both the Scheme certificate (from Company A & Company B) to Company C.

    Please suggest which Option I should proceed with.

    Regards

  • We UMAKANT Pandey have been done job South eastern Roadways from Feb 1991to nov2001 (10 years 9months and 19 days)at Ro Hyderabad again dec 2001 to October 2006 At ro Bandra now we join another company since January 2014 to till today I e July 2023 near about 9year and 7months or 10 years and my besice salary is Rs 15000 /per month from April 2018
    Now we want to club both of all'service
    Near about 25 years
    Then how many EPS made during this period.
    If we want saperat EPS for other co then
    How many EPS made.
    Plz guide me.

  • Very Informative. Detailed explanation. Please also add the following scenario.
    Current Age of employee 59 years
    Total service 20 years continuous service but comprises jobs with two companies
    Employee wants to opt for deferred pension at the age of 59 till 60 years
    PF online portal has following items to fill where your inputs will be highly useful.
    1. Do you have scheme certificate - Yes / No?
    Here there is continuous job (no break) between two companies, service history also transferred to new company.
    My query: Is scheme certificate needed from first company where service period was already more than 10 years. ?

    2. Apply for pension - with contribution / without contribution
    My query - which option to be filled here (EPF contribution still continue). EPF contribution continues even after 58 years.

  • Dear Sir
    I have worked for 7 years in the company and after leaving the company i applied for EPS certificate by mistake instead of withdrawal. What should I do now.

  • While applying 10D online pension claim, Error E03 Scheme Certificate exists in legacy.Please submit Physical 10D claim only!! every time. Validation error after Aadhar authentication just before generating PDF file.

    Visited EPFO Regional Office Pune, they say physical 10D will not be accepted, keep trying
    Tried 100 times atleast , still the same error.

    Is there any solution ?

  • I have applied for 10 C eps pension withdrawal after working for 15 monts in a private company. Currently i am unemployed , However the claim has been settled by the epfo office and has been settled for less than the pension amount showing in the passbook. what to do , pls advice, can the scheme certificate be cancelled and the remaining money be withdrawn urgently. my age is 52 yrs

    • Dear Ashok,
      It will be settled as per Table D. If you have doubts, then raise an issue with EPFO Grievance Cell Online.

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