A noteworthy change was mothered from 15 August 2025, under the EPS-95 scheme of EPFO. Now, a person qualifying for pension must have ten years of minimum contributing service. In other words, contributions made from time to time must accumulate at least ten years of qualifying service so as to provide monthly pension to an employee after retirement, bringing into force the adage that every contribution should count towards financial security.
Need For The Change
The pension plan under EPS-95 was floated in 1995, so that employees could avail themselves of monthly income after being retired, especially, in the private sector. But then with the change in working habits-the change kept accelerating with more and more people holding multiple jobs with different employers-the need arose for defining service continuity clearly. Thus, establishing a minimum service requirement would help bring consistency in contributions and fairness in eligibility, cementing the bond of trust in the system.
Benefits Of The New Rule
Having a ten-year requirement comes with a host of benefits:
- Fairness in Awarding Benefits: The employees whose very presence has been counted on over the years are entitled to draw their pension.
- Secure Retirements: With cumulation, pension rights are secured even for workers who have switched jobs rather often.
- Clearer Guidelines: Without ambiguity, the fix to be served would ideally assist both the EPFO administrators and employees.
What It Means For Employees
Planning for your retirement under EPS-95? Then keep in mind:
- Track Your Service Duration: Your combined tenure across roles should not be less than ten years.
- Verify Past Employment: Check if previous contributions made by your former employer are duly recorded to ensure there are no gaps.
- Consult HR or EPFO: If you think that you have fulfilled the requirement but there’s some discrepancy, then try to get it resolved well before your retirement date.
Toward Meaningful Protection
This rule amendment adds that last vital ingredient of clarity and certainty to the pension scheme of EPFO. Ensured the long-term financial security of nearly six million EPS-95 members, now meaning contributions really do count. It assures employees who have varied work histories that their contributions will count toward the promised level of assured income in retirement.
Also Read: EPFO Online PF Withdrawal: Complete Step-By-Step Guide For Members In 2025