Until recently, thousands of employees who left their jobs within just a few months of joining (say, after 2–3 months) lost out on the pension share of their EPF contribution.
This was because the Employees’ Pension Scheme (EPS) required a minimum service period of 6 months to be eligible for pension withdrawal.
Anything short of that was treated as “zero completed years” — and the entire EPS amount used to get forfeited back to the fund.That has now officially changed.
In April–May 2024, EPFO issued two internal circulars clarifying that members who exit before completing 6 months of service will still be eligible for pension withdrawal, provided at least 1 month of contributory service is completed.
In simple words:
Situation: Exit before 6 months
Earlier: Pension share lapsed / forfeited
Now: Pension share payable to member
This is applicable even in cases of voluntary exit / resignation, as long as EPS contribution was made for at least one month.
👉 The move is aimed at avoiding an “injustice” to short-tenure employees who voluntarily resigned or were laid off before completing 6 months.
Under the old EPS rules, pension withdrawal was calculated on the basis of “completed years of service”:
So even if someone had 5 months of service, it was treated as “0 completed years” — and no pension benefit was payable.
The employee share and employer share of PF could be withdrawn normally —
but the pension share simply lapsed.
💡 Tip: When submitting Form-19 (PF withdrawal) + Form-10C (EPS withdrawal), make sure to keep a screenshot / PDF copy of your passbook showing the EPS contribution — this can serve as supporting evidence in case the pension share gets missed out.
This is a small but meaningful reform — especially for younger employees who frequently switch jobs or exit early.
By recognising short-tenure contributions and avoiding unnecessary forfeiture, EPFO has taken a step towards a more fair and transparent pension system.
At FinRight, we regularly help individuals get their full eligible PF and pension benefits, especially in complex or rejected cases.
If you’re unsure whether your EPS share has been paid or forfeited, feel free to reach out — we can review your PF passbook and advise you on the exact next steps.
"},"category":"PF EPS issues","author":"Finright","is_published":true,"is_draft":false,"published_at":"2026-02-16T14:09:43.849Z","is_deleted":false,"summary_id":{"_id":"699325276bd959d84ebbf281","summary":"* EPFO now allows pension withdrawal for employees exiting before 6 months, if at least 1 month of EPS contribution is made. * Previously, pension benefits were forfeited if service was under 6 months, treating it as zero completed years. * Employees who left early should check their EPS balance and can raise grievances for pension share if it was not paid.
"},"visual_summary":null,"faq_id":{"_id":"699325276bd959d84ebbf27d","faqs":[{"question":"From when is this rule applicable?","answer":"The clarification was issued through EPFO internal circulars around April–May 2024 and applies to eligible claims processed after implementation.
","_id":"699325276bd959d84ebbf27e"},{"question":"How can I check if EPS contribution exists?","answer":"Download your EPF passbook and check the column showing Employer Pension Contribution.
If an amount appears, you are eligible to claim it.
","_id":"699325276bd959d84ebbf27f"}],"is_deleted":false},"createdAt":"2026-02-16T14:09:43.849Z","updatedAt":"2026-03-10T03:21:04.068Z","__v":0,"slug":"new-epfo-update-pension-payout-now-allowed-even-for-short-service-employees-less-than-6-months-of-service","id":"699325276bd959d84ebbf283","totalLikes":0,"totalViews":402,"totalShares":0,"ctas":{"checkmypf-1":{"_id":"69e364082c6fa767919261a7","unique_key":"checkmypf-1","button_text":"Check YOUR PF Now!","description":"Unsure about your PF balance? Use FinRight's CheckMyPF tool to analyze your EPF records for potential discrepancies or missed transfers.","heading":"Check My PF – Get Your Detailed Report!","navigation_url":"https://finright.in/check-pf-withdrawability"},"bookexpertcall_1":{"_id":"69e3643e2c6fa767919261a8","unique_key":"bookexpertcall_1","button_text":"Book a Call","description":"Book a consultation call with our EPF experts to get personalized assistance for withdrawal or transfer of your Provident Fund.","heading":"Need Help with PF Withdrawal or Transfer?","navigation_url":"https://finright.in/"},"transfer-1":{"_id":"69e364862c6fa767919261a9","unique_key":"transfer-1","button_text":"Start Your Transfer Journey!","description":"Let us assist you with the smooth transfer of your Provident Fund balance from previous employers. Ensure your funds are consolidated.","heading":"Transfer Your PF Without Hassles","navigation_url":"https://finright.in/"},"withdrawal-1":{"_id":"69e364b82c6fa767919261aa","unique_key":"withdrawal-1","button_text":"Start Your PF Withdrawal Journey!","description":"If you're ready to withdraw your PF, let us guide you through the process, ensuring all documents and conditions are met.","heading":"Simplified PF Withdrawal Process","navigation_url":"https://finright.in/"}}},"nextBlog":{"_id":"699326246bd959d84ebbf295","title":"How to Use EPF Form 5 When Appointment Letters Are Missing","primary_image_url":"https://finright-cms-media.s3.ap-south-1.amazonaws.com/18cd2db8-6af2-42fb-a1bd-37fe08a3065a.webp","id":"699326246bd959d84ebbf295"},"previousBlog":{"_id":"699323546bd959d84ebbf26a","title":"EPFO Latest Update 2025: Generate UAN Online with Aadhaar Face Authentication","primary_image_url":"https://finright-cms-media.s3.ap-south-1.amazonaws.com/65a4a0ad-6abe-4d83-905f-282a5b45ae53.webp","id":"699323546bd959d84ebbf26a"}}