Can we continue any employee whose age is above 60? - CiteHR
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Dear Sir
We have a situation where we are continuing our few employees beyond their age of retirement. We are very keen to continue our employee if they are willing to work for us and physically fit for employment. This would be continue of service without any break. We would be grateful to you if you could please advise us whether it is mandatory as per Indian law ( PF Law & Labour Law) to deduct Provident Fund after age of 60 for such employees.
Also if you could share link or attachment copy of law that would be very helpful.
Regards & thank
SACHIN GHAG

It is not illegal to deduct PF from the salary of a 60 year old employee. You can also contribute similar amount to his Provident Fund but not necessarily to Pension Fund. Th earlier principle was that after 58 years of age, you should not contribute to pension Fund but as per a recent notification, if the employee desires to defer receipt of pension he can do so and require the employer to make contributions till he attains 60 years of age. After 60 years of age if he is employed, his employer's share of contribution should go only to Provident Fund and the diversion of 8.33% to pension fund should not be made.
Madhu.T.K

Dear Mr.Madhu.T.K,
Thanks for clarification on coverage of 60 years and above employee. I need a clarification on whether to cover a above 60 year old employee who is already drawing PF Pension. What will be the legal position if I exempt such person from the PF coverage. I am grateful, if I get any citation on this issue.

There will not be any legal issue if you exclude an employee who is already getting PF pension. You can very well exclude such an employee. At the same time, if he is a government pensioner and not a PF Pensioner, he should be covered but the employer's contribution should be credited only to his Provident Fund account only.
Madhu.T.K

Dear Seniors
if an employee join as on 01.06.2016 and his basic salary is Rs.20000/-? can he eligible for PF
if yes, can we put 8.33% of limit amount Rs.15000/- in A/c -10 or 12% + 12% will deposit only in EPF.
His basic salary-20000/-
Employee share in A/c-01- 2400/-
Employer share in A/c-10-1666/-
Employer share in A/c-01-734/-
is it right, please clearfy.

Eligibility in such cases depends on the company policy with regard to extending PF to employees above 58/60 or employees who joins the company with more than Rs 15000 as PF qualifying salary. If the management is okay with extending coverage, PF can be given. If the management is ready for contribution for the entire salary, then the remittances will be as follows:

PF qualifying salary Rs 20000

Contribution of employee to PF @ 12% A/C No 01: 2400

Contribution of employer to Pension Fund @ 8.33% subject to wage ceiling of Rs 15000, A/C No 10: 1250

Contribution of employer to PF, A/C No. 10 @ 3.67% or difference between 2400 and 1250 : 1150.



Sometimes, the management will put a ceiling on salary for contribution to Rs 15000 for contribution as per the mandatory requirement of PF Act. In such cases, the contributions will be as follows:

PF qualifying salary Rs 15000

Contribution of employee to PF @ 12% A/C No 01: 1800

Contribution of employer to Pension Fund @ 8.33% A/C No 10: 1250

Contribution of employer to PF, A/C No. 10 @ 3.67% or difference between 1800 and 1250 : 550

Regards,

Madhu.T.K

Dear Mr. Madhu.T.K,
Thanks for your reply which is very much useful to me. In fact we have a few cases like this. So, now I can take a decision to exclude New Employees who are 60 and above from both EPF and EPS though they are drawing less than 15000/-

Dear All,
Please let me know the percentage of EPS amount that will be paid in case of resigned employee and also the present employee who has attained age of 58 years but not completed 10 years membership.

what are the forms that are required to be filled for a retiring employee in order to withdraw PF and is it necessary to wait for 60 days like other employees
The same form 19 is to be given for withdrawal of PF by an employee leaving the establishment on getting superannuated. Along with it he has to submit form 10D for availing monthly pension. The waiting period of 2 months is not applicable in this case.
For early withdrawal of pension Fund before 10 years of service, the government share to Pension Fund @ 1.16% will not be available to the employee. The withdrawal benefit is arrived at according to a calculation Table in this regard.
Madhu.T.K


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