EPFO Pension Withdrawal: A Complete Guide for 2025

When planning for retirement, one of the most crucial aspects is a steady post-retirement income. In India, the Employees’ Provident Fund Organisation (EPFO) provides such a benefit through the Employees’ Pension Scheme (EPS), 1995. While the main goal of EPS is to offer pension after retirement, many employees wonder if they can withdraw their EPFO pension amount before reaching the pensionable age or under specific circumstances.

In this comprehensive guide, we’ll explain everything you need to know about EPFO pension withdrawal — from eligibility and procedures to tax implications and key considerations.

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What is EPFO Pension (EPS)?

The Employees’ Pension Scheme (EPS) was introduced in 1995 and is managed by the EPFO, which is under the Ministry of Labour and Employment, Government of India. It is designed to provide a monthly pension to employees after their retirement, subject to certain conditions.

EPS is applicable to employees who are:

• Working in an organization covered under EPFO

• Drawing a salary of up to ₹15,000 (as per the latest cap for mandatory EPS contribution)

Both the employer and employee contribute to the Provident Fund (EPF), but only the employer contributes 8.33% of the employee’s monthly salary (basic + DA) towards EPS, capped at ₹1,250 per month.

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Eligibility for EPFO Pension Withdrawal

There are two main ways EPFO pension can be accessed:

1. Monthly Pension (After Retirement)

You are eligible for monthly pension benefits under EPS if:

• You have completed at least 10 years of eligible service

• You have reached the pensionable age of 58 years

• You have retired or ceased employment

You can also choose to take an early pension at the age of 50, but the pension amount will be reduced proportionally.

2. Pension Withdrawal (Before 10 Years of Service)

If an employee leaves the job before completing 10 years of service, they are not eligible for a monthly pension. However, they can withdraw the entire pension amount contributed by the employer (EPS contribution), based on a predefined table of withdrawal benefit provided by EPFO.

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When Can You Withdraw EPFO Pension Amount?

You can withdraw your EPS amount if:

• You have worked for less than 10 years

• You are resigning or switching jobs, and you don’t plan to transfer the account

• You are permanently leaving India

• You are unemployed for more than 2 months

However, if you’ve already completed 10 years of service, you are not allowed to withdraw the EPS amount. Instead, you will receive a pension on retirement.

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How to Withdraw EPFO Pension Amount

Online Method (via UAN Portal):

1. Visit the EPFO Member Portal: https://unifiedportal-mem.epfindia.gov.in

2. Login using your UAN and Password

3. Make sure your UAN is activated and KYC (Aadhaar, PAN, bank) is updated

4. Click on 'Online Services' → 'Claim (Form-31, 19, 10C & 10D)'

5. Choose Form 10C to withdraw pension (use Form 10D if you're applying for monthly pension)

6. Fill in the required details and upload any supporting documents, if required

7. Submit the claim and wait for approval

You will receive your pension withdrawal amount in your registered bank account within 15–30 days, depending on verification.

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Offline Method (Through Employer or EPFO Office):

1. Fill up Form 10C for EPS withdrawal

2. Submit it to your last employer or directly at the nearest EPFO office

3. Provide your UAN, Aadhaar, PAN, cancelled cheque, and employment details

4. Once verified, EPFO will process your claim and credit the amount to your bank

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Documents Required for EPFO Pension Withdrawal

• UAN (Universal Account Number)

• Aadhaar Card

• PAN Card

• Cancelled cheque with IFSC code

• Form 10C (for EPS withdrawal)

• Form 19 (for EPF withdrawal – optional)

• Bank passbook (if asked)

• Employer’s signature (for offline claims)

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Understanding the EPS Withdrawal Table

The EPS Withdrawal Table (Table D) specifies the pension amount you can withdraw if you haven’t completed 10 years of service. It is calculated as a multiple of your last drawn salary and the number of years of service.

Example:

If your last drawn pensionable salary is ₹15,000 and you worked for 6 years, and the corresponding table factor is 6.98, then:

Withdrawal amount = ₹15,000 × 6.98 = ₹1,04,700

This is the amount you can withdraw from EPS if you’re not eligible for monthly pension.

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Tax Implications on EPFO Pension Withdrawal

• If you withdraw your EPS amount before 5 years of continuous service, it may be taxable under “Income from Other Sources”

• TDS may be deducted if the amount exceeds ₹50,000

• If you withdraw after 5 years, the EPS withdrawal is generally not taxed

To avoid tax deductions, ensure you submit Form 15G/15H (if applicable) at the time of withdrawal.

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Important Points to Remember

1. Transfer vs Withdrawal: If you’re changing jobs, always prefer to transfer your EPF and EPS accounts using the UAN portal rather than withdrawing — this helps retain your pension benefits.

2. Don’t Withdraw If You Have 10+ Years of Service: You’re eligible for a monthly pension post-retirement. Withdrawing early would mean losing that benefit.

3. Pensionable Salary is Averaged: EPS pension is calculated based on the average of the last 60 months’ salary, so avoid abrupt reductions before retirement.

4. Higher Pension Scheme: As of recent developments, EPFO allows eligible members to opt for a higher pension based on actual salary instead of capped ₹15,000. If you’ve submitted a joint application with your employer, your pension may significantly increase.

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Common FAQs

Q1. Can I withdraw EPS if I’m unemployed?

Yes, if you are unemployed for more than 2 months, you can apply for withdrawal.

Q2. What happens if I don’t withdraw EPS?

Your EPS account remains with EPFO. If you don’t complete 10 years, it’s better to claim the amount. After 10 years, you should wait and claim monthly pension post-retirement.

Q3. Can I withdraw EPS multiple times?

No. EPS can be withdrawn only once when you exit employment and haven't completed 10 years of service.

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Conclusion

The EPFO pension withdrawal process is fairly straightforward but depends heavily on your total years of service. If you haven’t completed 10 years, you can withdraw your EPS contribution using Form 10C. However, if you are eligible for a monthly pension, it’s more beneficial to retain your EPS account and draw a pension post-retirement.

Whether you choose to withdraw or retain, it's essential to plan early, keep your EPFO details updated, and track your service years via the UAN portal. Smart planning today ensures a financially secure tomorrow.