Understanding Breaks in Service: How Do They Affect Your PF and ESIC Benefits?

What is the rule for break in service in PF and ESIC?

The rules for a break in service in relation to the Provident Fund (PF) and Employee State Insurance Corporation (ESIC) vary depending on the specific circumstances. In general, a break in service occurs when an employee leaves their job and then rejoins after a certain period of time.

Impact on PF

For PF, the impact of a break in service is that the previous PF account may become inactive, and the employee may need to open a new PF account upon rejoining. It is essential to understand the rules and regulations regarding PF contributions and withdrawals during a break in service.

Impact on ESIC

Similarly, for ESIC, a break in service can affect an employee's eligibility for benefits under the ESIC scheme. The specific implications would depend on the duration of the break and other factors outlined in the ESIC regulations.

To ensure compliance and avoid any issues related to breaks in service in PF and ESIC, employers and employees should familiarize themselves with the relevant guidelines and seek guidance from HR or legal experts if needed.

Break in Service for EPF and ESI

There is no specific rule for a break in service. Under EPF, any single day for which salary is not paid and contribution is not due is treated as a break in service. The accumulations of such breaks shall affect the pension payable, though a single day or a few days of LOP will not harm it.

Impact on ESI Benefits

Under ESI, if the number of days' contributions is less than 78 in a contribution period of 6 months, the insured employee would not be entitled to sickness benefits. Similarly, a contribution of 70 days in two consecutive contributions would make a woman employee disentitled to get maternity benefits. At the same time, no contributory conditions apply to medical benefits.