Employees Provident Funds Contribution and Service
Here's how an employee can keep track of his EPS amount
An individual switches jobs and usually transfers the Employees' Provident Fund (EPF) balance to the new employer. But what happens to the funds in the Employees' Pension Scheme (EPS) continues to remain a mystery for many. While the PF account number of the new employer shows the transferred EPF balance, what about the EPS money from the previous employer?
Here are a few pointers on 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, which can downloaded here . Recently, the EPFO introduced 'UAN based Form 10C', which can be downloaded here .
This form can only be used by an individual who has furnished employee details to the existing employer in 'Form 11-New' ( download here ), 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If you have worked for less than six months, the EPS contributions cannot be withdrawn as the EPFO rules say that for those who have not yet completed 180 days in the organisation, the withdrawal benefit is not admissible.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.
The employee won't get the entire contribution (Rs 541/Rs 1,250 a month) back after applying through Form 10C. The amount received will be subject to Table D as below.
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