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Fundamentals of pension withdrawal: Eligibility, process & rules

By Tata Capital
28 October 2026
8 mins read
2205

Summary

Pension withdrawal refers to the process of accessing the money you’ve collected in a pension or retirement fund. It requires that you meet certain eligibility conditions, such as reaching the retirement age. The rules vary by scheme. You can choose a lump-sum withdrawal, regular pension payments, or a combination of both. The two primary pension schemes in India are the Employees’ Provident Fund Organization (EPFO) and the National Pension System (NPS). You can visit the respective official portals to make the required pension withdrawal.

The process of pension contribution withdrawal helps you take out the money you or your employer has deposited and accumulated in a retirement plan.

When people in India talk about “pension withdrawal,” they usually mean claiming the amount they have accumulated under the Employees’ Pension Scheme (EPS), which is linked to their Employees’ Provident Fund (EPF) account. However, not everyone can withdraw this money freely. The rules depend on factors such as your age, years of service, and employment status. In some cases, you may receive a lump-sum withdrawal, while in others, you become eligible for a monthly pension instead. This article guides you on how to withdraw the EPS amount, the service-year rule, filing of Form 10C, tax implications, and when pension benefits apply.

What is a pension contribution withdrawal?

Pension contribution withdrawal refers to claiming the money that has accumulated in your EPS account. This is provided you meet the eligibility conditions. Under EPF, the employer contributes 12% of your salary, out of which 8.33% is diverted into the EPS account. Pension withdrawal means withdrawing this money from the EPS account. It is not the same as receiving a monthly pension after retirement, as that option is available only to members who satisfy the required service and age conditions.

Also, read – PF withdrawal for home loan prepayment in India

What are the EPS, EPF, and the pension component?

To understand the meaning of pension withdrawal, you must know the difference between EPF and EPS. The Employees’ Provident Fund (EPF) comprises contributions made by both the employee and the employer. The employer’s contribution is 12% of your salary. Out of this, 8.33% is contributed toward the Employees’ Pension Scheme (EPS). The EPF component earns interest and builds your retirement savings. Similarly, the EPS component funds pension benefits. Generally, pension withdrawal means claiming the EPS amount, not the EPF balance.

What is the eligibility to withdraw pension contributions in EPF?

The eligibility to withdraw pension contribution in EPF is as follows:

Less than 10 years of pensionable service: You can make an EPS withdrawal by submitting Form 10C.
10 years or more of service: You do not qualify for an EPS withdrawal. Instead, you can use Form 10C to obtain a Scheme Certificate, which helps you claim a monthly pension later.

The other conditions that determine eligibility to withdraw pension contributions in EPF are:

You must have quit your employment and remain unemployed for about 2 months before applying.
There can be exceptions in cases such as women leaving work after marriage or members permanently moving abroad.
You can receive a monthly pension on reaching the prescribed pensionable age.

How to withdraw pension contribution online (Form 10C)?

If you are wondering how to withdraw pension contributions online, here are the steps you need to follow:

Check that your Date of Exit is updated in EPFO records. Besides, your PAN Card, Aadhaar Card, and bank account must be seeded and verified with your Universal Account Number (UAN).
Log in to the UAN Member Portal using your credentials.
Go to Online Services and select Claim (Form-31, 19, 10C, and 10D).
Verify your bank account details and proceed.
Choose Form 10C for EPS withdrawal or related pension benefits.
Submit the claim form and complete authentication as required.
Track the claim status online.

As of 2026, the entire process is largely paperless and digital.

Also, read – Pros and Cons of Withdrawing from PF for Home Loan Down Payment

What are the required documents and KYC for EPS withdrawal?

The documents you need to withdraw funds from your EPS account are as follows:

Active UAN linked to your EPF account
Aadhaar linked and verified with UAN
PAN updated in EPFO records
Valid bank account details and a canceled cheque or other bank proof
Correctly updated Date of Exit (DOE) in the EPFO system
Accurate personal details matching KYC records
Form 15G or Form 15H may be submitted, where applicable, to help avoid TDS deduction on eligible withdrawals

What is the offline method (composite claim form)?

If you are unable to submit your claim online, you can use the offline route through the Composite Claim Form. This form combines the purposes of Form 19 (EPF withdrawal), Form 10C (EPS withdrawal), and Form 31 (advance withdrawal) into a single application. After filling in the required details and attaching supporting documents, the form can be submitted to the concerned regional EPFO office for processing.

Also, read – Easy PF Withdrawal Methods for Home Loans in 2026

What are the key differences between Form 10C vs Form 10D vs Scheme Certificate?

The following table outlines the key differences between Form 10C, Form 10D, and the Scheme Certificate:

Basis	Form 10C	Form 10D	Scheme Certificate
Purpose	Claim EPS withdrawal benefit or obtain a Scheme Certificate	Claim a monthly pension under EPS	Preserve pensionable service for future pension
Who can use it?	Members leaving employment and eligible under EPS rules	Members who are eligible to start receiving a pension	Members with 10 years or more of pensionable service
Service requirement	Usually used when the service period is less than 10 years for withdrawal	Generally, after meeting pension age conditions	Issued when service is 10 years or more and the pension is not yet being claimed
Benefit received	Lump-sum EPS withdrawal (if eligible) or Scheme Certificate	Monthly pension payments	No immediate payout; service history is preserved
Age condition	Depends on withdrawal eligibility	Pension can generally be claimed from 50 years of age (reduced pension) or age 58 (full pension)	Can be obtained before reaching pension age
Key point	Used for EPS withdrawal or Scheme Certificate, depending on service length	Used to start receiving a pension	Helps claim a pension later by preserving service records

How much EPS amount can you withdraw? (Table D)

The EPS withdrawal amount isn’t equal to the total money accumulated in your EPS account. It is calculated using Table D under the EPS rules. The benefit depends on your completed years of service and pensionable salary, with a prescribed factor applied to determine the payout. However, the rules have become more flexible with the recent amendment. They allow a proportionate withdrawal benefit for service below six months, whereas previously, such members didn’t receive any withdrawal benefit.

Also, read – How To Check PF Balance Online?

What is the tax on EPS/pension withdrawal?

The tax treatment of EPS or pension contribution withdrawal depends on the type of withdrawal and your service period. If an EPF withdrawal is more than Rs. 50,000 before completing 5 years of continuous service and your PAN is available, TDS may be deducted at 10%. A higher rate may apply if PAN is not provided. In certain cases, eligible taxpayers can submit Form 15G or Form 15H to avoid TDS.

EPS withdrawal tax rules can be complex. Thus, you must consider consulting a qualified tax advisor for guidance specific to your situation.

Pension withdrawal for retirees: When do you get a pension instead?

EPS does not allow lump-sum withdrawals for members with 10 or more years of pensionable service. If this is the case, you become eligible for a monthly pension under EPS by applying through Form 10D. You can enjoy full pension benefits from age 58, while a reduced pension can be claimed from age 50. You may also defer the pension up to age 60 for a higher amount. This is a different route from EPS withdrawal through Form 10C.

What are the common reasons for pension withdrawal claim rejection?

It is common for a pension withdrawal claim to get rejected in the following scenarios:

Date of Exit (DOE) has not been updated by the employer.
KYC details mismatch, such as differences in bank account names, Aadhaar, and PAN
Incorrect or unverified bank account information
Incomplete or incorrect service history in EPFO records
Applying before completing the required waiting period after leaving employment
Using the wrong form, such as applying for withdrawal when eligible only for a Scheme Certificate or pension
Errors in personal details or claim information

Conclusion

EPS withdrawal refers to the process of taking out money that has accumulated in your EPS account through contributions. If you know how to withdraw the EPS amount, you can avoid delays and make better retirement decisions. The most important factor in pension withdrawal is the 10-year service rule. If you have completed less than 10 years of pensionable service, you can withdraw your EPS benefit through Form 10C. On the other hand, if you have 10 years or more of service, you cannot withdraw the amount and must claim a pension instead. Since EPFO rules and procedures may change over time, you must always verify the latest requirements on the official EPFO portal before applying.

FAQs

Who is eligible to withdraw pension contributions in EPF?

EPF members with less than 10 years of pensionable service are eligible to withdraw their EPS benefit. However, this is after they have left employment and fulfilled the applicable conditions. If members have completed 10 years or more of service, they are eligible for a pension instead of a withdrawal.

How do I withdraw my pension contribution online?

You can withdraw your pension contribution online by visiting the UAN Member Portal. Check that your KYC and Date of Exit are updated, and go to Online Services to select Claim (Form 31, 19, 10C, and 10D). Choose Form 10C and submit your claim.

Can I withdraw my EPS amount after 10 years of service?

No. Once you complete 10 years or more of pensionable service, EPS withdrawal is generally not allowed. Instead, you receive a Scheme Certificate and become eligible to claim a monthly pension when you reach the prescribed pension age.

Which form is used for EPS pension withdrawal?

Form 10C is used for EPS withdrawal benefits and for obtaining a Scheme Certificate. If you are eligible for a monthly pension, you must use Form 10D instead of Form 10C.

How much EPS amount can I withdraw?

The withdrawal amount you are eligible for is calculated using Table D under EPS rules. It depends on your years of service and pensionable salary. It is not equal to the total amount credited to your EPS account.

Is EPS/pension withdrawal taxable?

The tax treatment on pension withdrawal depends on your service period and withdrawal details. TDS may apply in certain cases, especially when EPF is withdrawn before completing five years of service. You must consult a tax advisor for guidance on your situation.

What is the difference between Form 10C and Form 10D?

Form 10C is used for EPS withdrawal benefits or a Scheme Certificate. On the other hand, Form 10D is used to claim a monthly pension under EPS after becoming eligible based on age and service requirements.