Pension Eligibility Question: Does a Two-Year Absence Affect PF Benefits for Long-Term Employees?

One employee's P.F. join date is 01.01.2013, and he has been working till date. However, he was absent for two years during this period. Is he eligible for a pension?

Dear Colleague, to become eligible for Employees' Pension, the member has to complete 10 years of contributory membership under EPS as per the provisions of the Employees Provident Fund and MP Act. If you transfer your previous accumulations to your current EPF Account under UAN, then your service will be counted for pension calculation and eligibility. If you had closed your previous PF accounts, then it is not possible to continue and count the past service. Please check on this. If not closed, then ensure that you are transferring the accumulations under PF/EPS to the current UAN/PF A/c Number. Then see whether you have done 10 years of service. If 10 years have been completed or when you complete 10 years of service, you will become eligible for EPS.

Thank you for the valuable guidance. However, the employee working in the same company has had his PF contribution skipped for two years.

You mentioned in the post that the employee was absent. Later, you said his EPF contribution was skipped. Hence, if he was absent and not employed anywhere, it means he will not be eligible. But if his contributions are skipped by the employer despite being on the job, then it's a lapse on the employer's part.

Determination of Eligible Service

The eligible service shall be determined as follows:

(a) In the case of a "new entrant," the "contributory service" shall be treated as eligible service. The total contributory service shall be rounded off to the nearest year. The fraction of service for six months or more shall be treated as one year, and the service less than six months shall be ignored.

Explanation: In the case of employees employed seasonally in any establishment, the period of "contributory service" in any year, notwithstanding that such service is less than a year, shall be treated as a full year.

(b) In the case of the "existing member," the aggregate of contributory service and the "past service" shall be treated as eligible service. Provided that if there is any period in the "past service" for which the contributions towards the Family Pension Scheme, 1971 have not been received, the said period shall count as eligible service only if the contributions thereof have been received in the Employees' Pension Fund.

Explanation: For the purpose of this sub-paragraph, the aggregate of contributory service and past service for less than six months shall be ignored, and six months and above shall be rounded to a year.

Pension Eligibility and Calculation

Reckoned from 01.01.13, the employee has completed the eligibility period of 10 years of service. Pension is calculated using the formula: (Service Period x Pensionable Salary)/70. Pensionable salary is the average of the last drawn salary.

Thank you.

Pension Issue with PF Office

One employee is receiving a pension from both their old company service and new company service in the past. However, the pension has now been stopped by the PF office. Please suggest what to do?