EPFO Pension: Why don't those who work for more than one company receive a pension? Understand the rules..

EPFO Pension Rules: Nowadays, people in private jobs are constantly thinking about their future. They worry about how they will manage their expenses after retirement. This is because those in government jobs don't receive the pension that private employees receive. It's worth noting that private employees also receive a pension, but the amount is much lower. This pension is provided under the EPFO's EPS scheme. Private employees also have certain eligibility criteria for receiving a pension. For example, they must work for a certain period of time, and their PF must be deducted during that period. Many people also have questions about whether they will receive a pension if they have worked for different companies.

What is the eligibility for pension under the EPFO?

According to EPFO ​​rules, if you work for a company for 10 consecutive years, you become eligible for a pension under the Employees' Pension Scheme (EPS) after retirement. But what if someone works for 4 years, then loses their job, and it takes them 2-3 years to find a new one? How will their total working years be calculated for pension eligibility?

If you leave your job and there's a long gap between finding a new one, there's no need to worry. Whenever you start a new job, use the same UAN (Universal Account Number) that you had at your previous job. This way, your new employer will transfer your EPF contributions to the same account. Furthermore, your total service period from your previous job will be added to your new job. Therefore, you won't need to complete 10 years of service again to be eligible for a pension.

Will you get a pension if you work for more than one company?
According to the rules, if you work for 10 years or more under the same UAN number and your EPF contributions are being used, you will receive a pension, whether you work for one company or multiple companies.

For example, if you work for a company for five years and then lose your job, but join a new job a year later, your previous service will not be wasted. If you use the same UAN (Universal Account Number) in your new job, the one-year gap will be ignored. Therefore, if you complete five more years in the new job, your total service will be considered 10 years, making you eligible for the regular pension scheme. However, if you haven't completed 10 years of service and don't plan to work further, you can withdraw funds from your pension account before retirement age.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.