EPFO’s game-changer move! Now withdraw full EPS and PF amount with less than 6 months of service

financialexpress.com:

Big changes in EPFO and EPS rules! Good news for frequent job switchers as the Centre has amended EPS rules regarding the withdrawal of money. Under the earlier rules, those with less than 6 months of service were not allowed to withdraw money contributed towards the Employees’ Pension Scheme. But now, even if you have less than 6 months of contributions made to EPS, you can withdraw your money.

Under the EPFO scheme, an employee working for a private organization contributes 12% of their basic salary towards the provident fund, and the employer is required to match the employee’s contribution. Of the employer’s contribution, 8.33% goes towards the employee’s pension corpus governed by EPS, while 3.67% goes towards the employee’s EPF corpus.

Also read: EPFO withdrawal rule changed: No more advance facility for THESE members – Know details

Until now, if employees left their job before completing 6 months of service, they could only withdraw their EPF contribution and not the EPS money. However, now they will be able to withdraw both EPF and EPS contributions even if they leave the job before completing 6 months.

The centre has amended the Employees’ Pension Scheme (EPS), 1995 to ensure that EPS members with less than 6 months of contributory service also receive withdrawal benefits. This amendment will benefit more than 7 lakh EPS members every year who leave the scheme with less than 6 months of contributory service, according to a Labour Ministry release.

Further, the centre has modified Table D and has ensured that every completed month of service rendered is taken into account to give proportionate withdrawal benefits to the EPS members. Table D refers to members who have not met the required service for the scheme’s