India's New EPS, 2026: Pension Eligibility Before 10 Years Service

India's central government has introduced the Employees' Pension Scheme (EPS), 2026, a regulatory update replacing previous pension frameworks. While the core tenets of the national pension system largely remain consistent, a critical point of clarification for the workforce revolves around pension eligibility for individuals who separate from employment prior to completing a decade of service. Under the existing and newly affirmed provisions, employees are typically required to complete a minimum of 10 years of eligible service to qualify for a full pension. However, the EPS, 2026, maintains provisions for individuals with less than 10 years of service. Those who have completed at least 6 months of service, but less than 10 years, are generally eligible to withdraw their accumulated pension contributions rather than receive a periodic pension. This withdrawal option provides a lump sum payout, offering liquidity to employees who do not meet the full service requirement for a regular pension stream. Conversely, employees who resign or are terminated with less than 6 months of service are typically not eligible for any pension benefits, whether a lump sum withdrawal or a periodic pension. The new scheme reinforces these established thresholds, aiming to provide clarity to both employers and employees regarding their long-term financial planning and entitlements. The economic implication is a continued emphasis on long-term employment for traditional pension benefits, while offering a structured exit mechanism for shorter-term contributors.