dvmuralikrishna
hi i need a solution one of the factory i visited that employees once enter the 9th year they are resigning the position to claim the pf and pension once withdrawal the amount they rejoin again i ask the people they told me once enter 10th year they are eligible for pension that money he didn't get the back thats the reason he join back same company after three months please clarify and advise.Thanks
From India, Coimbatore
KK!HR
1530

It is shocking and is an abuse. Yes, the EPS'95 has set a minimum service of 10 years for getting the pension. Otherwise one can withdraw the contributed EPS amount along with EPF balance. (EMPLOYEE+EMPLOYER ) EPF contribution+Interest earned on this EPF & amount towards EPS contribution as per Table D of EPS, which is given below. Hence, whatever may be one's contribution to EPS, one will get this amount based on the number of services and last salary.
Table D of EPS
(See paragraph 14)
RETURN OF CONTRIBUTION ON EXIT FROM THE EMPLOYMENT
Years of service Proportion of wages at exit Years of service Proportion of wages at exit
1 1.02 6 6.07
2 1.99 7 7.13
3 2.98 8 8.22

4 3.99 9 9.33
5 5.02

Note: The above table is based on aflat addition in benefit.]
This is calculated as per the formula = Wages as on the date of exit X Corresponding Table ‘D’ factor. Here wages means Basic Salary+DA for EPS at the time of withdrawal. Therefore, suppose your salary is Rs.15,000 at the time of withdrawing and you completed 9 years, then you receive the EPS of Rs.1,39,950 (Rs.15,000*9.33). This is the amount you get, irrespective of your actual contribution to EPS.
You have to apply in the Form 10C along with other forms of EPF withdrawal
There is no major gain in the process as the EPS contribution of 9 years comes to Rs. 1,34,956 (15000X8.33%X12X9 ) and the net gain is Rs. 5000/- however there is every chance that one may fritter away the accumulated PF corpus as well as EPS returned amount and face immense hardship on reaching the age of superannuation. Today there are hardly any saving option available which gives the return comparable to PF, safe and secure investment.

From India, Mumbai
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