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You are leaving your job. You have worked for six years. Your EPF balance is sitting there, and you are tempted to withdraw everything. Clean break. Fresh start.
That is the moment when most people make a mistake that costs them their pension.
The PF withdrawal and the EPS service history are two different things. You can withdraw your PF balance and still preserve your pension service. You can also withdraw your pension contribution and lose everything you have built. The choice is yours, but most people do not even know they have a choice.
This is where the Scheme Certificate comes in. It is a document issued under the Employees’ Pension Scheme that records the number of years you have contributed to the pension scheme and contains details of your eligible family members. Think of it as a pension passbook or a service passport . It is not flashy. It does not put money in your bank account today. But when you are 58 years old and applying for your monthly pension, it is the document that determines whether you get that cheque or not.
The 10-Year Rule That Changes Everything
Under the Employees’ Pension Scheme (EPS) 2026, which came into effect on 29 June 2026 replacing the older EPS 1995, the eligibility rule is simple. You need a minimum of ten years of pensionable service to qualify for a monthly pension .
What happens if you leave employment before completing ten years? You are not automatically eligible for a monthly pension. But you are not left with nothing. The scheme provides two options :
- Withdraw the pension amount as a lump sum withdrawal benefit
- Obtain a Scheme Certificate that preserves your service history
The mistake most people make is choosing the first option without understanding the second.
What Is a Scheme Certificate?
A Scheme Certificate is issued under the Employees’ Pension Scheme to members who leave employment but want to retain their pension membership. It records your completed years of pensionable service . If you later join another establishment covered under the EPF and EPS, that previous service can be added to your future service for calculating pension benefits.
The certificate is useful in two situations :
When you have completed 10 years or more of service. Members with at least 10 years of pensionable service who leave employment before attaining 58 years of age are mandatorily issued a Scheme Certificate. They cannot withdraw the EPS amount as a lump sum. Instead, the certificate preserves their service until they become eligible to draw a pension .
When you have completed less than 10 years of service. Members with shorter service can also opt for a Scheme Certificate instead of withdrawing their pension benefit. This preserves their service for future use. It is optional but often the smarter choice.
Why the Scheme Certificate Matters More in 2026
EPS 2026 introduced a critical change that makes the Scheme Certificate more relevant than ever.
Under the revised rules, a member who exits service before attaining the age of superannuation becomes eligible to claim the withdrawal benefit only after 36 months have elapsed from the date on which the last contribution became due, or on attaining the age of superannuation, whichever is earlier .
This means if you leave your job today, you cannot simply walk away with your pension contribution tomorrow. You must wait three years, unless you reach retirement age earlier. The withdrawal is delayed. The Scheme Certificate, on the other hand, is available immediately. It protects your service history without any waiting period.
The stated purpose of this change is to promote long-term pension retention . The government wants you to keep your pension alive rather than cashing it out early.
What Happens When You Lose Your Service History
The easiest way to understand why this matters is to see what happens when you get it wrong.
You work for Company A for four years. You leave. You withdraw your full EPF and EPS contribution. You think you have settled everything.
You join Company B and work for six years. You now have ten years of total employment. You assume you are eligible for a monthly pension. But the pension scheme does not count your Company A service. Because you withdrew the EPS amount, those four years are gone. The EPS records show only six years of service. You are not eligible for a pension .
If you had taken a Scheme Certificate from Company A instead of withdrawing, those 4 years would have remained in the system. When you joined Company B, the Scheme Certificate would have allowed the service to be added. Total service: 10 years. You qualify for a monthly pension.
The difference is not just a few thousand rupees. It is a monthly income stream for your entire retirement.
The Form 10C Connection
You apply for a Scheme Certificate using Form 10C.
Form 10C is the claim form under the Employees’ Pension Scheme. It serves two distinct purposes depending on where you are in your career :
- Apply for withdrawal of pension contribution (where permitted)
- Apply for a Scheme Certificate to preserve service history.
The form is available online through the EPFO member portal. It requires your UAN, Aadhaar, bank account details, and employment information .
When filing online, you select the option “Scheme Certificate (Form 10C)” rather than “Withdrawal of Pension Benefit.” The process is digital. It can be tracked online. The certificate is issued electronically.
The UMANG App Advantage
The facility to apply for a Scheme Certificate is also available on the UMANG app. This is particularly useful for members who find the full EPFO portal daunting. The app requires an active UAN and a registered mobile number.
This is not a new facility but it is widely underutilised. Most members are not even aware of it.
How the Withdrawal Benefit Is Calculated
If you choose withdrawal instead of a Scheme Certificate, the amount you receive is calculated using a formula prescribed in Table IV of EPS 2026 :
Withdrawal benefit = Pensionable salary × Table IV factor
The applicable factor depends on the number of completed months of eligible service.
For example, if a member exits service after completing 24 months of eligible service and the pensionable salary is ₹15,000, the applicable Table IV factor is 1.99. The withdrawal benefit works out to ₹29,850 .
Similarly, if a member leaves after 60 months of eligible service with a pensionable salary of ₹15,000, the applicable factor is 5.02, resulting in a withdrawal benefit of ₹75,300 .
If a member ceases employment after 36 months with a pensionable salary of ₹15,000, the factor is 2.82, giving a withdrawal benefit of ₹42,300 .
The new scheme does not alter the basic principle that members completing at least 10 years of eligible service become eligible for pension benefits. The withdrawal benefit continues to be available only to those who exit before meeting this threshold .
Common Misconceptions
Misconception: Scheme Certificate is only for members with 10 years of service.
This is not accurate. While members with 10 years or more are mandatorily issued a Scheme Certificate, those with shorter service can also choose this option .
Misconception: Withdrawing PF automatically transfers EPS history.
This is incorrect and dangerous. The PF balance and EPS service history are separate components of the same account. Withdrawing your PF balance does not automatically transfer your EPS history. If you do not file Form 13 or obtain a Scheme Certificate, those years of service are not counted .
Misconception: You can withdraw EPS contribution anytime.
Under EPS 2026, members who leave service before superannuation can claim the withdrawal benefit only after 36 months from the date the last contribution became due, unless they attain superannuation earlier .
What the Government Has Done and What It Has Not Done
The notification of EPS 2026 on 29 June 2026 brought the pension scheme under the Code on Social Security, 2020 . The notification includes the 36-month waiting period for withdrawal benefits, which makes the Scheme Certificate a more attractive option for members who want to preserve their service without a delay.
The scheme also introduced defined claim settlement timelines. Pension claims must be settled within twenty days. Failure to do so attracts 12% annual interest, payable from the PF Commissioner’s salary .
The government has not revised the minimum monthly pension of ₹1,000. The pension formula remains unchanged. The wage ceiling remains ₹15,000 .
The scheme also statutorily recognises the higher pension option within the scheme itself, providing greater clarity for eligible members .
But the Scheme Certificate mechanism remains intact. It is not a new provision. It existed under EPS 1995. But its importance has grown. The waiting period makes early withdrawal less attractive. The Scheme Certificate offers immediate preservation of service history without any waiting period.
Why the Scheme Certificate Matters
You might think of it as a choice between two paths.
Path A: You withdraw your pension contribution. You get a lump sum today. But you lose your service history. If you later join another EPF-covered establishment, your previous service cannot be counted towards pension eligibility. You are starting from zero.
Path B: You apply for a Scheme Certificate. You get no money today. But your service history is preserved. If you later join another EPF-covered establishment, that previous service is added to your future service. Your pension eligibility is protected.
Path A is tempting. It puts money in your bank account. Path B is a statutory record of service that ensures pension eligibility continuity . It is not flashy. It does not put money in your pocket today. But when you are 58 years old and applying for your monthly pension, that piece of paper is worth far more than any lump sum you could have withdrawn.
If you leave employment before completing 10 years, get a Scheme Certificate. It keeps your pension alive. If you join another EPF-covered establishment later, that previous service can be added to your future service. This is how you cross the 10-year threshold. This is how you secure your monthly pension.
Strategic Advisory [FREE]: When to Choose Withdrawal and When to Choose Certificate
There is no one-size-fits-all answer. The choice depends on your circumstances .
Choose the Scheme Certificate if: you are likely to work in another EPF-covered establishment in the future, you have already accumulated several years of service and want to preserve them, or your family members would benefit from pension continuation in case of your death.
Choose the withdrawal benefit if: you are certain you will never work in an EPF-covered establishment again, you are approaching superannuation age and the withdrawal benefit is available, or the lump sum is needed for an immediate financial requirement.
The challenge is that most people do not know which path they are on. They leave a job without thinking about the future. They take the money and move on. This is the expensive mistake.
A Disclaimer, Not a Conclusion
This analysis is based on the Code on Social Security, 2020, the EPS 2026 notification dated 29 June 2026, and the operational framework for EPF and EPS as articulated by the Ministry of Labour and Employment and EPFO. It is statutory commentary and operational analysis, not legal advice.
The regulatory landscape is dynamic. The government may, in the future, introduce provisions that change the rules for Scheme Certificates or withdrawal benefits. But as of August 2026, the structure is clear.
If you are leaving a job or planning your retirement, consult a qualified legal professional who can advise you based on your specific circumstances. Your pension is not a theoretical issue. It is the difference between financial security in retirement and its absence.
Disclaimer: The information and analysis provided in this article constitute statutory commentary and operational analysis based on notifications published by the Ministry of Labour and Employment, EPFO, and other relevant government authorities up to August 2026. This content is for informational purposes only and does not constitute formal legal advice or create an attorney-client relationship. The legal landscape is dynamic, and specific facts and circumstances can materially alter outcomes. Readers are strongly advised to consult a qualified legal professional to obtain advice tailored to their specific situation before making any decisions or taking any action.