EPFO New Rule 2025: Who Could Lose Benefits Starting August 15

The EPFO New Rule 2025 under EPS-95 requires 10 years of service for pension eligibility from 15 August. Learn who is affected and what steps to take

Why This Update Matters to You

From 15 August 2025, the Employees’ Pension Scheme (EPS-95) under EPFO is enforcing a rule that you must complete at least 10 years of service to qualify for a monthly pension.

If you’ve switched jobs frequently or had breaks in service, this could affect your eligibility. Missing even a few months could make a big difference to your retirement planning. That’s why it’s important to understand exactly how this works and what you can do about it.

Why the EPFO New Rule 2025 Was Introduced

The EPS-95 scheme was launched in 1995 to ensure private-sector employees had a steady source of income post-retirement. But with job-hopping and frequent career shifts becoming the norm, many employees struggled to understand how their service records were counted.

The new EPFO Rule 2025 simplifies things by making the 10-year minimum service requirement crystal clear. This update aims to:

• Bring fairness and consistency to pension eligibility

• Ensure every contribution counts

• Build greater trust in the retirement system

Understanding EPS-95 Pension Eligibility

At its core, the Employees’ Pension Scheme (EPS-95) is designed to provide employees with a steady income after retirement. But here’s the critical rule you need to remember:

To qualify for a pension, you must complete at least 10 years of service, whether you’re retiring normally (superannuation) or opting for an early pension.

Now, what happens if you leave your job before completing 10 years? In that case, you won’t be eligible for a pension. Instead, you’re entitled to two options:

1. Lump-Sum Withdrawal – You can withdraw the pension amount you’ve accumulated. In June 2024, EPFO updated “Table D” to make these calculations more accurate and fair for those who exit before 10 years.

2. Scheme Certificate – This document preserves your service record. If you resume work later and continue contributing, your earlier service years will still count towards the 10-year requirement. Think of it as a “pension continuity safeguard.”

   
   

In short, EPS-95 works on a “complete 10 years or no pension” principle. For anyone planning their retirement, knowing this is crucial because even being short by a few months or days could mean missing out on a lifelong pension.

What You Should Do Next

1. Track Your EPFO Service History - Check your combined EPF/EPS service record to ensure it totals 10 years or more.

2. Verify Past Contributions - Especially if you’ve switched employers, confirm that all contributions are correctly recorded.

3. Resolve Issues Early - Spot discrepancies or shortfalls? Contact your current or former HR departments, or reach out to EPFO, well before your retirement date.

What This Means for You

• If you’ve contributed less than 10 cumulative years as of 15 August 2025, even a day less may mean you no longer qualify for the EPS-95 pension upon retirement.

• This shift emphasizes making every contribution count and emphasizes consistent record-keeping.

• EPFO now has clearer and fairer eligibility rules, strengthening financial certainty for those who meet the threshold.

Kustodian Experts’ Take

We believe this rule strikes a balance between protecting the retirement corpus and simplifying eligibility for employees. While some workers may miss out if they fall short of the threshold, in the long run, it will encourage better planning and help employees make informed career and retirement decisions.

If you’d like to understand how this fits in with other updates, check out our detailed blog on All Major EPFO Rule Changes in 2025, it breaks down every important change and what it means for you.

If you’re unsure how this new EPFO rule might affect you or your family, we’re here to help.

Schedule A Quick Call With Our Experts

At Kustodian.life, our goal is to make complex EPF and pension rules easier to understand and manage, so you can focus on what really matters: your financial peace of mind.