Understanding Break in Service Implications on Pensionable Service in PF Contributions

Hi,

What is the break-in period/period of non-contributory services mentioned in PF? Does the break-in period mean a loss of pay, or is there any significant meaning other than this?

Regards,
Sravan

Break in service refers to a period or number of days for which no contribution has been paid in respect of the employee. This is simply the loss of pay days. The significance of break in service (loss of pay days for which no contribution has been paid) is that while calculating the pensionable service of an employee, such days are deducted from the service. Therefore, for a person who has more number of LOPs, there is a chance of receiving less pension due to the reason being that his pensionable service would be reduced to the extent of such LOP.

Regards,
Madhu.T.K