Changing jobs can be stressful, especially worrying about your PF, service record, or insurance benefits.
Even a short break of a few days has sometimes caused problems for employees’ families.
To address this, the Employees’ Provident Fund Organization (EPFO) has updated its rules, providing relief to millions of workers.
Under the new rules, a gap of up to 60 days between two jobs will no longer be considered a break in service.
This means short breaks during job changes will now count as continuous service, giving employees peace of mind.
Insurance Benefits Get a Major Boost
This change has a significant impact on insurance benefits.
Earlier, if an EPFO member passed away within a few days of leaving a job, families could be denied insurance due to a service break.
Now, if a member dies within 60 days of their last PF contribution and is listed as an employee in the company records, the family will still receive insurance benefits.
Another important update is that weekends and gazetted holidays during a job change will no longer count as service breaks.
So, leaving a company on Friday and joining a new one after the weekend will not affect insurance coverage.
Minimum Insurance Amount Increased
The EPFO has also raised the minimum insurance benefit.
Dependents of employees who had less than 12 months of continuous service or a PF balance under ₹50,000 will now receive at least ₹50,000.
Previously, these families received very little or nothing.
Ministry Steps in for Social Security
The Ministry of Labor and Employment noticed cases where employees’ families were denied insurance due to technicalities during job changes.
In response, the EPFO issued a new circular to ensure that families do not face unnecessary difficulties in claiming benefits.
This rule change is a major relief for working people, strengthening social security and ensuring families are protected during transitions between jobs.