Navigating EPS and PF: Should I Withdraw or Opt for a Scheme Certificate?

I left my previous company with 3.5 years of experience and have now joined a new company. I have withdrawn my PF and now received the Form of EPS. In the EPS form, there are two options: 1. Withdraw 2. Scheme certificate.

Queries Regarding PF and EPS

So, I have the following queries:

1. Are PF and EPS linked? i.e., as I withdrew my PF, am I liable to apply for a scheme certificate of EPS? (Or do I only need to withdraw EPS?)
2. If I apply for a Scheme certificate, do I need to submit the scheme certificate to my new firm?
3. Is it valid to submit the scheme certificate to the new firm, considering I withdrew my PF?
4. What are the advantages/disadvantages of withdrawing EPS/applying for a scheme certificate?

Please provide me with guidelines for the above queries.

Hi Amar, Greetings for the day.

1) Yes, EPF & EPS are linked. EPF consists of 12% + 3.67%, and EPS is 8.33%. The rate of interest should be provided on 12% + 3.67% & on 8.33%. Additionally, 1.16% of the monthly wages, when the EPS salary is less than Rs. 6500/-, is provided by the EPFO. Withdrawal benefit of EPS is not admissible if the membership is less than 180 days, excluding the non-contributory period of service.

2) For the issuance of a scheme certificate, the contribution towards EPS or 10 years of service should be rendered.

3) In your case, a scheme certificate is not required. It is better to withdraw the whole accumulation or transfer the same to a new EPF/EPS account.

Thanks & Regards,
Sumit Kumar Saxena

Thank you for your valuable reply. How could I transfer EPS to a new EPS account? Is it valid to withdraw the PF and only transfer EPS to the new EPS account (i.e., PF-Withdraw, EPS-Transfer)? Once again, thanks a lot.

Regards,
Amar

To withdraw PF and transfer EPS to a new account, you will need a scheme certificate issued by EPFO. This certificate is only granted after contributing towards EPS or completing 10 years of service.

Thanks & Regards,

Sumit Kumar Saxena