Satya Gangadhar Rao
Hai
I am working as HR exevutive in reputed organgisaiton in E.G.Dt A.P.
In my Org. some people are working under consolidated pay. All of their age is above 58 years and they were retaired from Indian Govt. Service earlier. They working for our org. for consolidated payment.
We are not made deductons from their salary for P.F
Now the PF authorities questining that why they are not covered under PF Act.
Please advice me that, the above said persons are covered under pf act or not. Iam totally confusing that the PF act 1952 tells that above 58 yrs persons are not covered under this act. But the pf authorised persons tells that, IF we will not pay the pf amount for the above said employees, they will take action againast our org.
P.S.G.Rao

From India, Kakinada
prashant1314
46

Are they working with you as consulatant / Retainer then no PF desuction is required. PF deductions is onlt for " Employee " as per PF act please go through the defination.
From India, Pune
Satya Gangadhar Rao
Thaks for your reply Here the employees were working for consolidated pay, they were not consultants but they are abvoe 58 yrs age and they were retaired form Indian Railways
From India, Kakinada
Madhu.T.K
4193

Only those employees who had taken withdrawal of PF accumulations and or EPF Pensioners and whose salary exceeds Rs 6500 at the time of joining are treated as excluded employees. Therefore, if any person retired from government service joins you, he will be covered by EPF if his salary at the time of joining is less than Rs 6500. In your case, all these employees are retired from Indian Railways and may be pensioners but not "EPF Pensioners" and therefore, they can not be excluded. Certainly, since they have crossed the age of 58, the employer can not contribute towards their pension fund, but the employer should contribute the entire 12% in their Provident Fund alone along with employees' share of contribution.
On the otherhand, if any employee who had worked in an establishment to which EPF was applicable gets superannuated and withdraws his EPF accumulations joins your establishment, then he need not be covered by EPF again.
Regards,
Madhu.T.K

From India, Kannur
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