EPS Scheme 2026: Settlement within 20 days, PF withdrawal rules, and higher pension; know what has changed in 6 points..

Do you have a job and have PF contributions deducted from your salary every month? If so, this news is for you. The EPFO ​​has recently implemented several new rules that are crucial for employees to understand. These new regulations have been introduced under the 'Social Security Code, 2020' as the 'Employees' Pension Scheme (EPS), 2026'.

While the interests of pensioners were considered when formulating these new rules, some regulations have also been made stricter. Let us explain what has changed in the Employees' Pension Scheme (EPS), 2026, and how it will affect you.

What is the Employees' Pension Scheme (EPS)?
EPS (Employees' Pension Scheme) is a social security scheme administered by the EPFO. Its primary focus is to provide a regular monthly pension to private-sector employees upon retirement at the age of 58 and to offer financial security to their families.

Who is eligible for EPS-95 benefits?
Employees working in companies or factories where EPF (Employees' Provident Fund) is applicable can avail the benefits of EPS-95. This includes individuals who were part of the earlier Family Pension Scheme, 1971, or those who became members between April 1, 1993, and November 15, 1995. Generally, an employee can remain a member of this pension scheme until the age of 58.

What has changed in EPS 2026?
1. Withdrawing pension funds prematurely has become difficult
Previously, the rules were somewhat lenient, but the government now wants you to preserve funds for retirement. Under the new rules, you cannot withdraw EPS funds (withdrawal benefit) immediately after leaving your job. You must complete a waiting period of 36 months or wait until you turn 58; you will be able to withdraw the money based on whichever milestone occurs first.

2. Registration Required Only Once
If you are already an EPFO ​​member, there is no need to worry. Under the new rules, the membership of all existing members will continue without interruption. You will not be required to fill out any forms afresh.

3. Legal Approval for Higher Pension
The 'higher pension' option—which gained prominence following a Supreme Court verdict—has now been explicitly incorporated into the new regulations. Employees who have opted for the higher pension will now benefit from greater legal protection and clarity.

4. Settlement Within 20 Days
Arbitrary delays by the PF office will no longer be tolerated. Under the new rules, pension claims must be settled within 20 days. If officials fail to settle claims within the stipulated timeframe, they will be held accountable, and interest may have to be paid for the delay.

5. New Penalty Rules
The rules regarding penalties for delayed deposit of PF or pension funds by companies have now been aligned with the 'EPF Scheme, 2026'. This will bring transparency to the entire system.

6. How Pension Will Be Calculated
The method for determining the pension amount remains unchanged. Your pension amount will be calculated based on the average salary of the 60 months (5 years) immediately preceding your resignation or retirement.

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.