Am I Eligible to Withdraw EPF Benefits After 10 Years of Service?

Interesting Query for All:

Regarding the Employee's Provident Fund (EPF) coverage, the date of birth is 31/01/1982. The individual joined the establishment on 01/01/2002 and left on 01/01/2012, accumulating a total service of 10 years. The non-contributory period (NCP) days amount to 340. Will I be eligible to withdraw benefits under the EPF Act?

No, you cannot take the withdrawal benefit under Sec. 14 of the EPS, 1995. There is no provision under Section 14 to deduct the NCP from the length of the service period. Moreover, there is no provision to reduce the NCP in “Actual Service” as per Section 2(1)(ii). NCP is to be effective only for the calculation of Pensionable Service under Section 2(1)(xv).

As per your suggestion, a break in service does not matter. If a member joins from 01/01/2002 to 31/01/2012 for just one month and then joins again from 01/01/2012 to 31/01/2012 with the same EPF account number in the same establishment, are they eligible for a member pension?

Regards,
Chirag Shah

Dear PK Jain, Good morning, As per your suggestion, a break in service does not matter. For example, if a member joins from 01/01/2002 to 31/01/2002 for just one month and then joins again from 01/01/2012 to 31/01/2012 with the same EPF account number in the same establishment, are they eligible for member pension?

Regards,
Chirag Shah

Regarding your initial post, the answer is that you cannot withdraw the amount.

Clarification on EPF Number Assignment:

In reference to your second post, could you kindly clarify how the employee would be assigned the same EPF number after 10 years? Considering that the date of the employee's departure would have been communicated in 2002, the account would have been closed for contributions. Are you suggesting that the employee was on unpaid leave for 10 years?

Regards,
Preetam Deshpande

Good morning. For your information, a member gets the same PF/FPF account number if they do not withdraw the PF/FPF amount and if they join the same establishment. Yes, a member can migrate to India for 10 years and then rejoin the same establishment.

Thank you.

I am not getting your point of the query. Please clarify. Also, please check the date mentioned in your second query.

However, there is a difference between NCP and a break in service. Under the EPS, 95 for considering the actual service period, the NCP is to be considered for the purposes of withdrawal benefits. If the total period of actual service is 10 years or more, as per your first query, the member will not be eligible for withdrawal benefits.

As per your first reply, "No, you cannot take the withdrawal benefit under sec. 14 of the EPS, 1995. There is no provision under section 14 to deduct the NCP from the length of service period."

And as per your second reply, "EPS, 95 for considering the actual service period the NCP to be considered for the purposes of withdrawal benefits."

Please clear the same.

Clarification on Non-Contributory Period (NCP)

Don't confuse yourself. The NCP should be considered while calculating the actual period of service and should not be deducted from the length of the service period, even if there is some period in which there is no contribution (NCP). Hope you get the point.

Regards

Please help me in this matter and answer my query: "If a member joins from 01/01/2002 to 31/01/2002 for just one month and then joins again from 01/01/2012 to 31/01/2012 with the same EPF account number in the same establishment, are they eligible for member pension?"

Thank you.

Regards

Yes, he may be eligible for a pension if his name continues in the muster roll of the employer and the employer certifies the same.

Understanding Eligibility with an Example:

Suppose an employee is enrolled for the first time as a member of the PF/EPS on 1.1.2002. However, on 31.1.2002, due to any reason such as the establishment closing on account of a lockout or some other reason, or the employee concerned not earning wages, but their name continues in the muster roll. If the establishment reopens or the employee is allowed to join/rejoin the establishment on 1.1.2012 and subsequently reaches the age of 58 years on 31.1.2012, what would be the situation?

The employee concerned would be eligible for a pension since they have an eligible service period of more than 10 years. The intervening period would be treated as NCP. It is important to remember that the contributory period and eligibility period are different. The quantum of pension may be a separate issue, but eligibility is established.

Thank you,
Pkjain

If a member's name does not continue in the muster roll of the employer, what situation would occur? Would he still receive a pension?

One more question: during her service period of 15 years at "XYZ Ltd," if a widow service member passed away and her two sons are above 25 years old, would her son be eligible to receive a pension? If so, what type of pension would he receive?