Tezzbuzz Desk- Relief news has emerged for the employees and their families. Employees Provident Fund Organization (EPFO) has issued an important circular, which will provide huge benefits to employees changing jobs and their dependents. Under the new rule, breaks in service due to weekends or government holidays will no longer be considered, which is expected to eliminate disputes to death claims and insurance to a great extent.
EPFO has clarified that if an employee leaves one company and joins another company and only Saturday, Sunday or any declared holiday falls in between, then it will not be considered as service break. Earlier, it was seen in many cases that when there was a weekend between two jobs, the employee’s service was considered broken, due to which the family was not able to get benefits like insurance and pension.
According to the organization, in many cases, after the death of the employee, the Employee Deposit Linked Insurance (EDLI) claim of his family members was rejected due to minor gap or less amount was given. Many times dependents had to suffer losses due to wrong calculation of service. This new circular has been issued to overcome these problems.
According to the new instructions, if there are only weekly offs, national holidays, gazetted holidays, state holidays or restricted holidays between the end of one job and the start of another job, the service will be considered continuous. Not only this, even if there is a maximum gap of 60 days at the time of changing jobs, the service will still be considered continuous.
EPFO has also increased the minimum payment received under the EDLI scheme. Now a minimum of Rs 50,000 will be paid to the nominee or legal heir, even if the employee has not completed 12 months of continuous service or the average balance in the PF account is less than Rs 50,000.
This new rule will also be applicable in cases where the employee dies within six months of his last PF contribution, provided the employee is still recorded in the records of the employer. This will provide relief to the families of employees from lengthy legal processes and unnecessary disputes for insurance claims.
This decision of EPFO is being considered as a step to strengthen security and confidence for the employed people and their families.
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