EPFO Pension 2025: How 10 Years of Service is Calculated with Job Breaks

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EPFO Pension 2025: How 10 Years of Service is Calculated with Job Breaks

EPFO Pension 2025: If you’re planning for retirement and relying on the EPFO Pension Scheme, you might be wondering: What happens to your pension eligibility if you took a break in your career? With changing jobs or temporary gaps becoming common, it’s essential to know how the Employees’ Pension Scheme (EPS) under EPFO (Employees’ Provident Fund Organisation) treats such interruptions.

In this article, we’ll explain how pension eligibility is calculated, what happens when there’s a gap in employment, and how you can still be eligible for pension benefits after 10 years—even with breaks in service.

What is EPFO Pension Scheme?

The EPFO Pension Scheme (EPS) is a retirement benefit plan introduced by the Government of India under the EPFO umbrella. It’s designed to provide monthly income to employees post-retirement.

  • Both employee and employer contribute to the EPF account every month.

  • A portion of the employer’s contribution (8.33% of basic salary, capped) goes to the EPS.

  • The pension becomes payable after retirement, usually at 58 years of age, provided the employee has completed 10 years of eligible service.

Is 10 Years of Continuous Service Required?

No, the 10-year requirement is not necessarily for continuous service.

You are eligible for EPS pension if your total service, even with breaks, adds up to 10 years.

Example:

  • Worked in Company A: 5 years

  • Took a career break: 2 years

  • Joined Company B: 6 years

✅ Total service = 11 years → You are eligible for pension

The catch? You must have used the same UAN (Universal Account Number) across your employment history.

What is UAN and Why It’s Crucial?

UAN (Universal Account Number) is a unique number allotted to each employee by EPFO. It remains the same throughout your career, regardless of job changes.

Benefits of UAN:

  • Links all your PF accounts across employers.

  • Helps track total service years.

  • Enables hassle-free transfer of funds and service details.

If you change jobs but keep using the same UAN, your service period remains intact and is added cumulatively.

How Service Period Is Calculated During a Job Break

Scenario Is Service Eligible? Condition
Continuous service for 10 years ✅ Yes No break, no issue
5 years in Company A + 5 in B ✅ Yes Same UAN used
7 years in A, 2 years break, 4 in B ✅ Yes (Total 11 years) Same UAN and EPF account updated
Different UAN in A and B ❌ No (May need to merge) Must transfer old PF account to new one
8 years total, left job, no new one ❌ No Can withdraw corpus but won’t get pension

How Is EPFO Pension Calculated?

The EPFO Pension Formula is:

Monthly Pension = (Pensionable Salary × Pensionable Service) ÷ 70

Where:

  • Pensionable Salary = average monthly salary of the last 60 months

  • Pensionable Service = total years of service (max 35 years)

Important Note:

If your total service is less than 10 years, you are not eligible for monthly pension, but you can withdraw the pension corpus (without interest).

How to Keep UAN Active During Job Breaks

Keeping your UAN active is essential for continuous pension eligibility. Here’s how to do that:

Tips to Keep UAN Active:

  1. Regularly log in to EPFO portal (https://unifiedportal-mem.epfindia.gov.in)

  2. Link Aadhaar, PAN, and bank account

  3. If changing job, share your old UAN with the new employer

  4. Check PF passbook to ensure contributions are being made correctly

  5. Avoid creating a new UAN—always use the existing one

Key Takeaways

  • You do not need 10 years of continuous service—cumulative service works.

  • Breaks in employment do not cancel your pension eligibility if your UAN is consistent.

  • Always inform your new employer about your existing UAN.

  • Merge PF accounts if you accidentally got a new UAN during a job switch.

Final Words

Many employees are confused about whether a career break will affect their pension eligibility. The good news is, as long as you complete 10 years of total service (with the same UAN), you will still qualify for EPFO pension benefits in 2025 and beyond.

Whether you’re switching jobs, taking a break, or planning early retirement—stay informed, keep your UAN active, and monitor your EPFO account regularly.

Disclaimer:

This article is for informational purposes only and does not constitute legal or financial advice. The rules and policies of EPFO are subject to change by the Government of India. Please consult the official EPFO website or your HR department for the most accurate and up-to-date information.

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