But what happens if a member leaves employment before completing 10 years? The new scheme provides two options for such members.
Similar to the earlier pension scheme, EPS 2026 allows members who exit before becoming eligible for a monthly pension to either claim a withdrawal benefit or obtain a Scheme Certificate, provided they have not attained the age of superannuation.
One of the changes under EPS 2026 relates to the timing of the withdrawal benefit.
Under the revised rules, a member who exits service before attaining the age of superannuation becomes eligible to claim the withdrawal benefit only after 36 months have elapsed from the date on which the last contribution became due, or on attaining the age of superannuation, whichever is earlier.
The scheme states: “…in the case of exit from service before attaining the age of superannuation, the member shall become eligible to avail the withdrawal benefit only after the lapse of thirty-six months from the date on which the last contribution became due or on attaining the age of superannuation, whichever is earlier.”
Alternatively, members may opt for a Scheme Certificate, which enables them to carry forward their eligible service if they join another establishment covered under the EPF and EPS in the future.
How is the withdrawal benefit calculated?
Schedule II of EPS 2026 prescribes the withdrawal benefit payable based on the member’s completed months of eligible service. The benefit is calculated by multiplying the pensionable salary at the time of exit by the factor specified in the schedule for the corresponding period of service.
For example, if a member leaves employment after completing 36 months of eligible service and has a pensionable salary of ₹15,000, the withdrawal benefit is calculated by multiplying the pensionable salary by the applicable factor in the schedule.
The Employees’ Pension Scheme, 2026 came into effect on June 29.
(Edited by : Anshul)
First Published: Jul 16, 2026 4:54 PM IST
