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Retirement Funds

Your EPS pension when you leave India before ten years

The provident fund is the part everyone talks about. The pension sitting beside it has its own rules and its own one-way door.

When you left your Indian job, two things went with it. The EPF balance, which people know about and ask about. And an Employees' Pension Scheme account beside it, funded by a slice of your employer's contribution, which almost nobody mentions until an EPFO form asks a question they cannot answer. The form is Form 10C, and it offers two paths. Take the withdrawal benefit now, or take a scheme certificate instead. Nothing on the form explains what you are choosing between, and the difference only becomes visible years later when it is too late to revisit. If you have already crossed ten years, the choice is not yours at all, which surprises people in the other direction.
Last reviewed: 23 August 20268 min readReviewed by Preetesh Maloo, CA

The short answer

Ten years of eligible service is the line, and it works in both directions. Cross it and EPS becomes a lifelong monthly pension. You cannot take it as a lump sum, however much you would prefer the cash on your way out of the country. Stay below it and you have two options on Form 10C: take the withdrawal benefit as money now, or take a scheme certificate that preserves the service instead. The certificate is worth something only if that preserved service can later be joined to more. It has no expiry and it aggregates with other certificates when handed to a new employer, so somebody who returns to Indian covered employment can reach ten years across several stints. Somebody who never works in India again is holding service that will not reach the threshold on its own. So the question is not which option is better in the abstract. It is whether Indian covered employment is plausibly in your future.

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Two accounts left your job, not one

Your employer's monthly contribution was never all going to the same place. Part of it funded the provident fund balance you can see, and part of it funded an Employees' Pension Scheme account you probably cannot.

That is why the exit paperwork has more than one form on it. The provident fund settles on Form 19. The pension side is Form 10C below ten years of service, or Form 10D once a pension is actually payable. People claim the first, ignore the second because they do not recognise it, and then find years later that a pension account is still sitting there with their name on it.

Nothing about leaving India settles the pension side automatically. It waits.

Ten years is a cliff, not a slope

This is the fact that makes the whole decision, and it is worth stating plainly because the halfway position does not exist.

With ten years of eligible service, EPS becomes a lifelong monthly pension. It cannot be commuted to a lump sum, so a member who would much rather take the money and go cannot. With less than ten years, there is no pension entitlement standing on its own, and the withdrawal benefit is what the scheme offers instead.

Eligible serviceWhat EPS gives you
Ten years or moreA lifelong monthly pension. No lump sum option
Under ten yearsA withdrawal benefit, or a scheme certificate preserving the service

So somebody at nine years and somebody at eleven are in genuinely different schemes, and the gap between them is a few months of service rather than anything to do with how much was contributed.

What the scheme certificate is actually for

A scheme certificate does not pay you anything. It records the service so it can be added to service you earn later.

It has no expiry date. It stays valid until you hand it to a new employer or surrender it to take the withdrawal benefit. If you left several employers each with under ten years, you can hold several certificates, and giving them to a new employer aggregates the periods.

That mechanic is built for someone whose career continues inside the Indian system. Read it as an emigrant and the question becomes concrete: is there a realistic path back into Indian covered employment? For somebody on a long assignment who expects to return, the answer is often yes. For somebody who has taken another citizenship and is not coming back to an Indian payroll, preserved service that cannot reach ten years is preserving an option that will not be exercised.

What the withdrawal benefit is worth, and what changed

The withdrawal benefit is not your contributions handed back. It is a figure from Table D, driven by completed contributory service and the wages EPS contribution was received on.

That table was amended so every completed month of service counts toward a proportionate benefit, and the benefit now reaches members with less than six months of contributory service, which it previously did not. So a short Indian stint that used to yield nothing on the pension side may now yield something.

We are not putting a rupee figure on this page, because the amount turns on your own service months and contribution wages and any number here would be wrong for most readers. It is computed, not looked up.

Where this meets the rest of your exit

The pension decision does not sit on its own, and treating it separately is how people get it wrong.

It runs alongside the provident fund claim, which has its own tax treatment turning on five years of continuous service and its own TDS under Section 192A. See Withdrawing your EPF as an NRI, and when it is taxed.

It also runs alongside whether you can lodge a claim at all from abroad, which is a separate and very practical problem if EPFO wants an Aadhaar you do not have. See Your EPF claim is blocked for want of an Aadhaar you cannot get.

And where you are moving to has a social security agreement with India, there may be a totalisation route worth understanding before you surrender anything. See Social security totalisation and the certificate of coverage.

What's involved

What the CA actually does

  1. 1

    We establish your actual eligible service

    Not what you remember, what the record shows: the periods, the employers, whether they were linked under one UAN, and where that leaves you against the ten-year line. People are often closer to it, or further from it, than they assume.

  2. 2

    We lay out both paths against your own facts

    What the withdrawal benefit computes to on your service months and contribution wages, and what a scheme certificate would preserve. Then the question that decides it, which is whether Indian covered employment is realistically ahead of you. The choice stays yours; the numbers stop being guesswork.

  3. 3

    We file it, and handle the provident fund alongside

    Form 10C for the pension side, the Form 19 settlement for the provident fund, the tax that follows, and the claim mechanics if you are doing all of this from outside India.

What to have ready

Documents you'll typically need

  • Your UAN, and the member IDs for every Indian employer you had
  • Dates of joining and leaving for each period of service
  • Any scheme certificate already issued to you
  • Your EPF passbook or service history, if you can still access it
  • Your date of leaving India, and your current residential status
  • The country you are now tax resident in, for the totalisation question

References on this page

  • Ten years of eligible service makes EPS-95 a lifelong pension benefit that cannot be drawn as a lump sum
  • Below ten years the member may take the withdrawal benefit or carry the service forward
  • Form 10C: the claim below ten years, for either the withdrawal benefit or a scheme certificate. Form 10D: the monthly pension claim
  • A scheme certificate has no expiry and remains valid until submitted to a new employer or surrendered for withdrawal
  • Multiple scheme certificates aggregate when submitted, so service across employers can be added together
  • Table D amended so every completed month of contributory service counts toward a proportionate withdrawal benefit, extending it to members with under six months of service (Press Information Bureau)

Frequently asked questions

Common questions

Service accrues while you are in covered employment, not while an account sits idle, so time abroad does not move you toward the threshold. That is exactly why the scheme certificate exists: it preserves what you earned so it can be joined to future Indian covered service, if there is any.

No. Once eligible service reaches ten years EPS is a pension benefit and it cannot be drawn as a lump sum. Members who would rather have the cash on emigrating find this out at the counter, and there is no version of the form that changes it.

It preserves service, and preserved service only converts into a pension if it can eventually reach ten years. Somebody with no realistic route back into Indian covered employment is preserving something that may never mature, so the honest comparison is the certificate against the withdrawal benefit computed on their own service months. That is a calculation, and it is worth doing before the form is signed rather than after.

There may be now. Table D was amended so that every completed month of contributory service counts toward a proportionate withdrawal benefit, and the benefit extends to members with under six months of service, which was not previously the case.

The exceptions that change the answer

Where the general rule stops applying to you

Every rule below has a carve-out, a cut-off date or a condition that flips the answer. These are the ones that decide real cases.

EPF withdrawal exemption: continuous service

Right now: 5 years of continuous service

Where it works differently

Service is under 5 years
Four components are taxed separately: employer contribution and its interest as salary, employee contribution previously claimed under 80C reversed, and interest on employee contribution as other sources.
Rule 8 of Part A of the Fourth Schedule.
Employment ended for reasons beyond the employee's control
The 5-year condition is relaxed.
Proviso to Rule 8.
The account is inoperative
Interest continues to accrue and is taxable once the member leaves service.
Settled position; a live issue for NRIs with dormant accounts.

Commonly got wrong

  • EPF withdrawal is always tax-free. Only after 5 years of continuous service.An EPF withdrawal is tax-free only after five years of continuous service. Below five years, four separate components become taxable in different heads.

EPF interest that becomes taxable on high contributions

Right now: Interest on employee contributions above Rs 2,50,000 a year is taxable (Rs 5,00,000 where the employer makes no contribution)

Where it works differently

The member is an NRI with a dormant account
Interest continues to accrue, and an account becomes inoperative after 36 months without contribution, at which point the interest is taxable in India.
EPF Scheme rules plus settled tax treatment.
The member has left India
Indian tax on that interest still applies as India-sourced income, and the residence country may tax it too.
s.9 read with the relevant treaty.

Commonly got wrong

  • All EPF interest is tax-free. Interest on employee contributions above Rs 2.5 lakh a year has been taxable since FY 2021-22.Interest is tax-free up to Rs 2.5 lakh of employee contribution a year (Rs 5 lakh where the employer does not contribute). Above that it is taxable.

Not sure whether to take the EPS money or the certificate?

Send us your UAN and the dates for each Indian employer. A practising CA will establish your eligible service, compute what each path is worth on your own numbers, and file whichever you choose.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.