Wanted to know the age limit of an employee who can work in a private company (IT) and also whether he can be in service and in companies payroll. Is EPF deduction is mandatory after the age of 58 years.
From India, Chennai
From India, Chennai
No Labor Law prescribes the maximum age for recruitment of employees afresh nor for continuation of the existing employees in the service of any organization. These aspects are governed by the respective Service Rules and Regulations of the individual organizations both in Public and Private Sectors. Of course, model standing orders framed under the Industrial Employment ( Standing Orders ) Act,1946 prescribes 58 years as the age of superannuation. But, it is a guide line only and the organization can fix a lower or higher age for retirement depending upon the nature of service, physical standards required for the positions etc. It is well within the discretion of the Management to extend the services of an employee in the interest of the organization beyond the age of superannuation with the willingness of the employee concerned. Alternatively, the services of such an employee can be utilized further on Fixed term Contract basis or as a Consultant on retainer basis depending upon the position. However, the inherent demerit of such an arrangement is the indications of ineffective or no Succession Planning in place, nepotism, denial of promotion opportunities to juniors etc.
No provision for continuation of membership of such employees in the EPF beyond 58 years of age.
From India, Salem
6018No provision for continuation of membership of such employees in the EPF beyond 58 years of age.
From India, Salem
Hi,
To add further to Mr umakanthan's comments, the contribution towards EPS part in provident fund would be stopped and diverted to EPF only ie 8.33% of employer portion. Full 12% of employer portion would go to EPF instead.
From India, New Delhi
To add further to Mr umakanthan's comments, the contribution towards EPS part in provident fund would be stopped and diverted to EPF only ie 8.33% of employer portion. Full 12% of employer portion would go to EPF instead.
From India, New Delhi
Dear Friend,
There is no specific age has been fixed for a person can work up to. You can find Govt & Central Govt have raised the age limit of the people working under them from 58 years to 60-62 years. The current age of retirement for Supreme Court judges is 65 years while High Court Judges is 62 years.
The establishment under private is being decided as per the certified standing order, if applicable. In absence of SO, by any specific rules of the establishment deciding the maximum age is treated 58. In many cases the service is being extended from 1 to 2 years seeing the physical condition of concerned but for the extended period he/she can not be under EPS. To stay off from the adverse implication of system, it is better to follow 58 as the Maximum.
From India, Mumbai
There is no specific age has been fixed for a person can work up to. You can find Govt & Central Govt have raised the age limit of the people working under them from 58 years to 60-62 years. The current age of retirement for Supreme Court judges is 65 years while High Court Judges is 62 years.
The establishment under private is being decided as per the certified standing order, if applicable. In absence of SO, by any specific rules of the establishment deciding the maximum age is treated 58. In many cases the service is being extended from 1 to 2 years seeing the physical condition of concerned but for the extended period he/she can not be under EPS. To stay off from the adverse implication of system, it is better to follow 58 as the Maximum.
From India, Mumbai
The comments of Shri Umakanthan Sir and other Seniors are very appropriate and appreciated. Many Cos. do not have proper rules and end up with the peculiar situation when a person attains 58 yrs. Whether to continue or stop the person etc.,
PF Act donot prohibit contributing to PF of those continuing beyond 58 yrs. Only Pension a/c.stops. Those who are continued coverage of PF beyond 58 yrs. Cos. Pension contribution is also deposited in PF a/c. and thus the employee continue to get PF benefit which will be a saving for him but also reduce his IT liability. In effect; where in many Cos. in which Senior level officers are continued or given extension; Co. continues PF cover while the employee who has crossed 58 yrs. will be getting Pension also. Management consider this based on utility of key post & persons contribution to the Co.+ physical & mental factors etc.,.
Since S.O. stipulates 58 yrs., workmen are generally retired at 58 yrs. While Senior level posts; depending on the need; utility; etc., of the person concerned; Management can continue giving extension; initially for 1 or 2 yrs or as Consultant,, FT etc., giving certain benefit as agreed between them. Many Officers in Finance, Audit, HR, Legal, Technical posts are given preference; recognizing their past service & future needs of specific works of the Dept. This way; The Co. recognise the past service while the Co.is also benefitted by his specific exp. / Contribution.
HR Consultant 29.1.2018
From India, Mumbai
PF Act donot prohibit contributing to PF of those continuing beyond 58 yrs. Only Pension a/c.stops. Those who are continued coverage of PF beyond 58 yrs. Cos. Pension contribution is also deposited in PF a/c. and thus the employee continue to get PF benefit which will be a saving for him but also reduce his IT liability. In effect; where in many Cos. in which Senior level officers are continued or given extension; Co. continues PF cover while the employee who has crossed 58 yrs. will be getting Pension also. Management consider this based on utility of key post & persons contribution to the Co.+ physical & mental factors etc.,.
Since S.O. stipulates 58 yrs., workmen are generally retired at 58 yrs. While Senior level posts; depending on the need; utility; etc., of the person concerned; Management can continue giving extension; initially for 1 or 2 yrs or as Consultant,, FT etc., giving certain benefit as agreed between them. Many Officers in Finance, Audit, HR, Legal, Technical posts are given preference; recognizing their past service & future needs of specific works of the Dept. This way; The Co. recognise the past service while the Co.is also benefitted by his specific exp. / Contribution.
From India, Mumbai
As I know when epf member employees completed 58 years age can continue epf membership but can not take pension benefit after 58 years. Yes it is only as saving and other employees benefit in epfo members not eligible after 58 years of age.
From India, Anand
From India, Anand
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EPS - Wage Limit increase_01.09. 2014.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx
Age.xls