Confused About EPS Withdrawal? Why Is My Settled Amount Less Than Expected?

I applied for EPS withdrawal, and the amount settled was only 45K, but my actual EPS balance on the passbook login is 68K. Total service is 4.7 years, with the last drawn basic salary being 18K. As per Table D, it should be 18,000 x 5.02 = 93,600. Why did they withhold 23K? How is it calculated?

My PAN card is linked and verified, and I have submitted Form 15G as well.

As per my knowledge, you may have calculated incorrectly because they did not deduct the amount from the EPS account, and PAN and Form 15G are not required to settle the EPS amount. Please check once again.

What is the right calculation then?

I have 68K in the EPS fund as per the EPFO passbook. They settled only 45K. What's the basis of this calculation?

Hi Viswajith, I agree with Svlrkhr3 regarding the PF and EPS withdrawal. I have not heard of any specific calculation for EPS when it is withdrawn along with PF. It might be best to check directly with the RPFC or the PF exit settlement team from your company for clarification on the calculations.

The first time I raised a grievance regarding this, they asked me to resubmit Form 10C. I did, but they rejected it, asking why it was resubmitted. When I raised a second grievance, they gave some unrelated response and closed it without a resolution. I have written to the email address of the concerned PF office one week ago and am awaiting a response.

EPS Settlement Calculation Before 10 Years of Service

Meanwhile, I am surprised that none of the members here are able to explain the basis on which EPS settlement is calculated before the completion of 10 years of service. This seems to be a grey area.

The maximum contribution to EPS is Rs 15,000/- (EPS Wages) at 8.33% - Rs 1,250/-. The last drawn basic salary of 18K has no relevance to withdrawal. Please check your EPS Wages from the EPF Pass Book.

Thank you.

Pension Withdrawal Calculation

Withdrawal of pension has nothing to do with the balance in the account or the amount accrued in the account. In pension matters, the last salary and pension years are the two relevant factors.

There is no statement of balance or accrued amount in pension. How are you saying your pension balance is shown as 68K? I am surprised. Maybe it has started recently.

While withdrawing from pension, your last salary is multiplied by the factor in Corresponding Table ‘D’. Your last salary is Rs. 15,000 (and not Rs. 18,000). Pension is contributed on a maximum of Rs. 15,000. You worked for 4.7 years, which means 5 years.

Your pension calculation would be:
15,000 x 5.02 = 75,300

Withdrawal from the EPS account is taxable. You need to make a complaint or correspondence with EPFO.

EPFO Passbook Portal Discrepancy

The EPFO passbook portal shows a detailed breakdown of EPF & EPS balances. Even if the basic salary is considered as 15K, the settled amount doesn't match.

I had raised a grievance, for which I was asked to resubmit Form 10C. Accordingly, I resubmitted Form 10C, but this claim was rejected, asking for an explanation for the resubmission.

I raised another grievance, which was closed without a satisfactory explanation or resolution.

I have written to the concerned PF office and am still awaiting their response.

Pension Balance Calculation

Maybe showing the pension balance started recently. I just read the following:

While calculating the Pensionable Salary, we have to take the average of the monthly pay drawn during the 60 months preceding the date of cessation of membership. As of 1st April 2019, the Pensionable Salary is to be calculated on the last 12 months' salary.

You can take up your grievance with ‘NIDHI AAPKE NIKAT’.

EPS Scheme Contribution and Withdrawal Discrepancy

As per the EPS Scheme, you were contributing only Rs. 1250 per month (reckoned on a pensionable salary of Rs. 15,000, which has been the ceiling amount) to the EPS corpus. For 4.7 years, this works out to Rs. 68,750. This is what your passbook is revealing.

Now, since you have foreclosed the scheme before completing the minimum eligibility of 10 years of service, they are to return the contribution as per Table D. So, it has to be Rs. 15,000 X 5.02 = Rs. 75,300. However, the payment of Rs. 45K means there is something amiss. If your EPS corpus is Rs. 68,750, then you definitely have a case for an additional amount.

Dear KK!HR, I also said the same thing. I further suggested in the next post that he needs to take the average of the monthly pay drawn during the 60 months preceding the date of cessation of membership. I now confirm that he needs to take the average of the monthly pay drawn during the 60 months preceding the date of cessation of membership as per the amendment made by the GSR 609 (E) dated 22.08.2014. Still, if there is a deviation or difference, he has to make his case as I suggested, i.e., with ‘NIDHI AAPKE NIKAT’. Because in RPFO, no one will give him a proper reply. I have also said that withdrawal from the EPS account is taxable. I further say that the Notification GSR 609 (E) dated 22.08.2014 was set aside by HC Kerala. The SLP filed by EPFO against this set-aside was dismissed by SC. Due to all the above, huge ambiguities persist. When the whole amendment of 2014 regarding the pension is set aside, one needs to think of the issues that may arise from it. Yesterday, when I posted here on this thread, I was not remembering all these things.