Understanding EPF Contribution Gaps: How Long Can Unemployment Last Without Losing Benefits?

Hello,

If an employee has availed EPF and he was unemployed for certain months, then again he gets employed. Can anyone tell me how much such unemployment period is acceptable by EPF Act 1952 so that his previous PF contributory period will be considered while calculating contributory service and he can get all benefits as per the act?

- Saurabh

Hi Saurabh,

I hope you are well. I would like to inquire about the re-employment process. Has the final settlement been completed for the individual in question? Have they rejoined as a new employee?

Best regards,
Rohini

Hello Rohini,

Actually, this is a hypothetical situation. You can consider that for any reason, he was not working with any company for some duration. After some days, he joined back another company. He has not withdrawn his PF amount either.

- Saurabh

Dear,

No problem, the period of nonpayment does not have any limit. For benefits like pension, this will be counted as a non-contributory period.

Regards,
J. S. Malik

Dear Saurav,

NCP is considered only at the time of calculating pension. As far as PF is concerned, interest is credited on the monthly running balance.

Best Regards,

Sajid Ansari
Delhi

Hello Sajid, I think you must be able to do so, but I'm not very sure. Can anyone please guide us about it?

- Saurabh

Dear,

There is no limit to such a period; it is actually known as the Non-Contributory Period (NCP). NCP is considered only when calculating pension. As far as PF is concerned, interest is credited on the monthly running balance. There is no limit to NCP under the EPF Act. A person will benefit accordingly when calculating their pension amount.

Thanks,
Mohd. Arif Khan

How many months/years as a gap is counted for non-contributed service? Is there any limit, or not?

NCP has relevance only for Employees' Pension Scheme, not for EPF. For the pension scheme, it is up to the age of retirement - 58 years of age.

If an employee has availed EPF and was unemployed for certain months (for example, 18 months), then gets employed in a new company, can anyone tell me how much such an unemployment period is acceptable by the EPF Act 1952 so that his previous PF contributory period will be considered while calculating contributory service and he can get all benefits as per the act?

EPS Continuity and Eligibility for Pension

Just to know for EPS, whether the discontinued 18 months will be calculated for completing 10 years of EPF/EPS continuity in order to be eligible for receiving a pension after 58 years, or if it is 10 years of actual contribution to EPS. Also, is there a rule for the maximum number of years that one can't discontinue the EPS contribution in the EPF scheme?

Regards,
Radha