Understanding PF Pension Withdrawal and How to Claim It

PF Pension Withdrawal - How to Withdraw PF Amount Online

06^th Nov 2025...

Published By : 811

Key Takeaways for Pension Fund Withdrawal

The pension component in EPF is funded by 8.33% of the employer’s contribution under the Employees’ Pension Scheme.
Pension fund withdrawal is permitted through Form 10C when total service is between six months and ten years.
After ten years of service, the amount cannot be withdrawn and becomes eligible for a lifelong monthly pension via Form 10D.
The monthly pension starts at the age of 58 or earlier from 50 at a reduced rate.
Accurate KYC, PAN, Aadhaar, and bank details on the EPFO portal ensure smooth pension fund withdrawal and claim processing.
EPS service can be transferred through a Scheme Certificate when changing employment to retain pension benefits.
Evaluating short-term financial needs against long-term security is essential before opting for pension fund withdrawal.

Saving for the future is one of the most important habits in every salaried professional’s financial journey. The Employees’ Provident Fund (EPF) plays a central role in this process, helping employees build long-term savings through both employer and employee contributions. Alongside this, there is another component that often creates confusion which is Employees’ Pension Scheme (EPS). Many people discover this part of their EPF account only when they leave a job and start wondering how to withdraw the pension contribution. EPS offers post-retirement financial support through a modest pension. It’s a key retirement plan in India and can be complemented with options like FDs, mutual funds, and PPF for better security.

In this article, let’s simplify how the pension portion of your EPF works, who can withdraw it, and what steps are involved when you choose to do so.

Understanding the Pension Component in EPF

Every month, a part of your employer’s contribution to EPF is set aside for your pension under the Employees’ Pension Scheme. While the total EPF balance can usually be withdrawn after leaving employment, the pension part follows a different set of rules. Whether you can withdraw it or not depends on two main factors — your total years of service and your age at the time of exit.

If you have worked for less than ten years, you may be eligible for a one-time withdrawal of the pension amount. Once your service crosses ten years, you become eligible for a lifelong monthly pension that starts at the age of 58, or earlier at a reduced rate from 50 years onwards. This distinction is important because it determines whether you receive a lump-sum payout or a steady monthly income after retirement.

Also Read: Everything You Need to Know About EPF

Eligibility to Withdraw Pension Contribution in EPF

Before initiating a claim, it is essential to understand the basic eligibility criteria for pf pension withdrawal. You can withdraw your pension contribution if:

You have left your job and are not contributing to EPF or EPS at present.
Your total service under EPS is between six months and ten years.
Your KYC details, such as Aadhaar, PAN, and bank account, are verified on the EPFO portal.
You are submitting Form 10C to claim the withdrawal benefit.

Those who have completed ten years of service are not eligible for withdrawal but can claim a monthly pension through Form 10D. If you have completed less than six months of service, pension withdrawal is not permitted, though the EPF contribution can still be withdrawn as per standard rules.

Employer and Exit Verification Requirements

Even when you apply online, your previous employer plays a key role in approving your claim. Before initiating the withdrawal, ensure that:

Your date of exit is updated by the employer in the EPFO system.
All your past employment service periods are linked under the same UAN.
The employer has verified your KYC and employment details to prevent delays.
Claims without employer verification may get rejected or put on hold by the EPFO.

How to Withdraw Pension Contribution Online

The process to withdraw the pension component has become simple with online facilities through the EPFO Member portal. Here’s how it works in a few easy steps:

Log in to the EPFO portal using your Universal Account Number (UAN) and password. Ensure that your KYC is verified and your bank details are correct.
Select the online claim option under “Online Services” and choose “Claim (Form 31, 19, 10C & 10D)”.
Verify your bank account details as prompted.
Choose Form 10C if you are withdrawing the pension amount and your total service is less than ten years. Select the relevant option for withdrawal or Scheme Certificate.
Submit your claim and track its status under the claim history section.

Once approved, the pension amount is directly credited to your registered bank account, usually within a few days. For those eligible for a monthly pension, the same process applies, except that Form 10D must be filled instead of 10C.

Also Read: What is EPFO and How Does it Work

Offline Claim Option

Download the Composite Claim Form (Aadhaar/Non-Aadhaar) from the EPFO website.
Fill in Form 10C or 10D as applicable.
Attach self-attested copies of Aadhaar, PAN, and a cancelled cheque or bank passbook.
Submit the documents to your regional EPFO office or through your employer.
The offline process takes longer but works well if your UAN or Aadhaar is not fully verified online.

Quick Checklist Before You Apply

Points to Remember Before You Withdraw

It’s always better to evaluate whether withdrawing your pension amount is the right decision for you. If you are close to completing ten years of service, it may be worth continuing your employment a bit longer, as it will make you eligible for lifelong pension benefits.

Additionally, if you plan to join another organisation soon, you can transfer your EPS service through a Scheme Certificate rather than withdrawing the amount. This helps your total service years add up and increases your pension eligibility later.

For those who urgently need funds, the ability to withdraw pension contributions from EPF provides financial flexibility. However, it's wise to weigh immediate needs against long-term retirement benefits before taking a decision.

Illustration Example

Let’s assume your pensionable salary (average of last 60 months) is ₹ 25,000 and you have 9 years of EPS service.
If you withdraw now (under 10 years), you may receive a lump-sum of around ₹ 1.3 lakh depending on the EPFO withdrawal table.
If you complete 10 years, you’ll be eligible for a monthly pension.
For instance, with 12 years of service and ₹ 25,000 average salary, the monthly pension could roughly be ₹ 2,600–₹ 3,000, continuing for life.

(Figures are indicative; actual pension is calculated as per official EPS formula.)

Documents and Small Checks that Help for PF Withdrawal

To ensure a smooth claim experience, double-check that your details on the EPFO portal are complete and accurate. Keep the following ready before you file the claim:

Aadhar, PAN, and bank account linked with you UAN.
A scanned copy of your cancelled cheque or password with your name and IFSC visible.
Updated date of exit by your employer in the system.
Nomination details verified on the EPFO portal.

These small verifications can prevent delays and help your claim get processed easily.

Tax and TDS Implications

Withdrawals from the Employees’ Pension Scheme (EPS) and EPF can have different tax outcomes:

If you withdraw your pension amount before completing 10 years of service, it may be taxable as part of your income for that year.
EPF withdrawals made before completing 5 years of continuous service may attract TDS and lose tax exemption benefits under Section 80C.
Monthly pensions received after 58 years are taxed as income under the “Salaries” head.

Hence, if you’re close to the eligibility milestone, continuing service can help you retain the long-term tax advantages.

When Monthly Pension Becomes Applicable

Once your total EPS service exceeds ten years, the withdrawal option no longer applies. You are automatically eligible for a monthly pension that begins at age 58. You can also opt for early pension from 50 years onward, although the pension amount will be slightly lower due to early commencement.

In such cases, you need to apply through Form 10D on the same portal. The EPFO calculates your monthly pension based on your service years and the average pensionable salary during your last 60 months of service.

Receiving Your Pension Amount Safely

Your pension withdrawal or monthly pension will always be credited to the bank account linked to your EPF. Choosing a reliable and secure digital savings account ensures you can track all such credits in one place. For instance, with Kotak 811, you can monitor salary deposits, pension credits, and other fund transfers easily through your mobile banking app, keeping your finances neatly organised.

Making the Right Financial Choice

The pension component of your EPF is your safety net for the future. Whether you decide to withdraw it or convert it into a monthly income, understanding the process helps you make the right financial move.

If you have served less than ten years, how to withdraw pension contribution is straightforward with Form 10C. If your service exceeds ten years, Form 10D ensures you receive regular pension benefits after retirement. Always keep your EPFO details updated and review your options carefully before submitting your claim.

Next Steps for You

Before making the final decision:

Review your total years of EPS service carefully.
Check if you’re re-joining another job soon (opt for Scheme Certificate).
Factor in tax treatment and long-term retirement security.
If your situation is complex, such as multiple job changes or overlapping EPF accounts, consider consulting your HR department or a financial advisor for clarity.

Planning ahead and staying informed can make a meaningful difference to your post-retirement comfort. Taking a few minutes today to understand your EPF pension rules ensures your savings continue to work for you tomorrow.

FAQs on PF Pension Withdrawal

1. Can I claim my pension early?

Yes, you can claim your pension early after completing a minimum of 10 years of service, but only once you reach the age of 50. However, the monthly pension amount will be reduced compared to claiming it at 58 years.

2. Can I withdraw 100% pension?

You cannot withdraw 100% of your pension if you have completed 10 or more years of service, as it must be taken as a monthly pension. Full withdrawal is only allowed if your service is less than 10 years.

3. Can I close my pension and take the money out?

You can withdraw the pension amount (EPS balance) entirely if your total service is below 10 years by submitting Form 10C. Once you complete 10 years, the account cannot be closed, and you are eligible only for a monthly pension.

4. What's the best way to withdraw a pension?

The easiest and safest method is to apply online through the EPFO portal using your UAN, Aadhaar, and linked bank account. This ensures faster processing and direct credit of funds to your bank account.

5. What is the difference between PF withdrawal and pension withdrawal?

PF withdrawal refers to withdrawing the balance from your Provident Fund (EPF) account, which includes your and your employer’s contributions. Pension withdrawal deals only with the Employees’ Pension Scheme (EPS) portion, which provides a monthly income after retirement.

6. What happens if an employee dies before starting the pension?
If a member with 10 years or more of EPS service passes away before pension starts, their spouse or nominee becomes eligible for a family pension under EPS ’95 rules.

7. Can I transfer my pension service to my next job?
Yes. Instead of withdrawing, you can apply for a Scheme Certificate when leaving a job and submit it to your new employer. This helps continue your pension service record and increases your total pensionable service years.

8. Can I combine service from multiple employers for EPS?
Yes, as long as your previous service records are linked through your UAN and Scheme Certificates are transferred rather than withdrawn.