Withdrawing EPF Pension? Here’s Everything You Need

Withdrawing EPF Pension? Here’s Everything You Need

If you have changed jobs, left employment, or simply want clarity on your EPF benefits, you may be wondering how to withdraw the pension contribution. While the EPF amount can be withdrawn easily, the pension part is governed by EPS rules, which depend on your age, years of service, and employment status.

Many employees are unaware of these conditions and face issues during claim processing. This blog breaks down the pension withdrawal process step by step, including eligibility, required forms, online submission through the EPFO portal, and the timelines involved so that you can complete your claim confidently and without hassle.

Understanding Pension Contribution in EPF

The Employees’ Provident Fund (EPF) has two components: the employee’s share and the employer’s share, of which a portion is allocated to the Employees’ Pension Scheme (EPS). While the EPF balance grows with monthly contributions and interest, the pension portion works differently.

It is managed under EPS and is meant to provide a monthly pension after retirement, subject to eligibility. Unlike the EPF amount, the pension contribution cannot always be withdrawn freely; it is subject to specific rules based on age, years of service, and employment status.

Understanding how the pension component works helps you determine whether you can withdraw it or receive it as a pension and guides you in making the right decision for your financial planning.

Eligibility Criteria for Withdrawing Pension Contribution

Withdrawing the pension amount depends on several conditions set under EPS. Applicants need to meet specific criteria based on their service tenure and age. Key conditions include:

• Less than 10 years of service: Eligible to withdraw the pension contribution using Form 10C.
• More than 10 years of service: Pension cannot be withdrawn; you are eligible only for a monthly pension upon reaching the pensionable age.
• Age below 58 years: Withdrawal allowed only under specific service conditions.
• Migration abroad or permanent disablement: Special provisions may apply.
• Meeting these criteria ensures a smooth pension withdrawal request without delays or rejections.

Step-by-Step Process to Withdraw Pension Contribution in EPF

Withdrawing the pension contribution requires following a structured process through the EPFO portal or offline channels. Here’s how it works:

Step 1: Check Eligibility

Confirm whether your years of service and age allow pension withdrawal under Form 10C or pension claim under Form 10D.

Step 2: Update KYC on UAN Portal

Ensure Aadhaar, PAN, and bank details are verified on the UAN portal. Any mismatch can delay approval.

Step 3: Submit Form 10C Online

Log in to the EPFO member portal, navigate to ‘Online Services’, and select the option to claim withdrawal benefits. Choose Form 10C for pension contribution withdrawal.

Step 4: Select Service and Verify Details

Choose the employment period for which you want to withdraw the pension portion. Verify your KYC, service history, and bank account details.

Step 5: Upload Required Documents

Upload scanned copies of identity proof, bank passbook, and service documents if asked. Some cases may require additional declarations.

Step 6: Submit the Claim

Apply online. You will receive a tracking number.

Step 7: Verification by Employer and EPFO

Your employer and the EPFO office verify the employment history and eligibility before processing the request.

Step 8: Receive Payment

Once approved, the pension withdrawal amount is directly credited to your bank account. Following these steps ensures a smooth, timely withdrawal of the pension contribution.

Documents Required for Pension Withdrawal

The pension withdrawal process requires a few mandatory documents to verify identity, employment history, and bank details. Common requirements include:

• Aadhaar Card for identity and age verification
• PAN Card for taxation compliance
• Bank passbook or cancelled cheque for correct account mapping
• UAN details with updated KYC
• Form 10C or Form 10D, depending on eligibility
• Service records such as relieving letter or salary slip (if requested)
• Additional medical certificates for disability-based claims
• Keeping these documents ready speeds up verification and ensures faster claim settlement.

Modes of Pension Withdrawal Payment

EPFO processes pension-related payments through multiple modes depending on the type of withdrawal and the member’s bank details.

• Direct Bank Transfer: The most common mode in which the pension amount is credited to the bank account linked with UAN.
• Aadhaar-Linked Payments: Faster processing if the Aadhaar-seeded bank account is active.
• Pension Disbursement Banks: For monthly pension via Form 10D, payments are routed through authorised banks.
• International Remittance (for NRIs): Applicable if withdrawing from abroad, subject to bank and EPFO verification.
• Choosing the correct and active bank account avoids delays or rejections.

Tax Implications of Withdrawing Pension Contributions

Taxability depends on whether you are withdrawing the EPS amount or receiving a monthly pension. Pension withdrawal before completing 10 years of service is generally tax-free, provided it qualifies under EPFO rules.

Tax on provident fund applies to the monthly pension received after retirement, which is treated as taxable income and taxed as per the individual’s applicable slab rate. Incomplete service, early withdrawal, or missing PAN may result in higher TDS deductions. Understanding these tax rules helps you plan withdrawals better and avoid unnecessary deductions.

Common Challenges and Solutions in Pension Withdrawal

Pension withdrawals often face delays due to mismatches in documents, incomplete KYC, or discrepancies in service records. Many applicants encounter issues like unlinked UANs, outdated bank details, or employer non-verification.

These challenges can be avoided by ensuring your KYC is fully updated, bank details match exactly with EPFO records, and service history is correctly listed.

Keeping all supporting documents ready and responding promptly to EPFO queries also helps. If delays persist, members can raise a grievance on the EPFO portal or visit the regional office for faster resolution.

AN Jan 29/26