Sr. Officer Hr
Assistant Engineer, Indian Telephone Industries,
Consultant & G.m.
Asst Manager Hr
+4 Others

Dear all members
i am working in a manufacturing factory as hr executive. we have retained some employees in service after their 55 years . in our company retirement age is fixed at 55 years. but we retained them as they are still efficient and want to work. my question is it compulsory by law to deduct their pf contribution?
plz guide me about statutory provisions regarding dis.. shall we deduct his pf as well as employer share or its not mandatory..?
plz help me.
waiting for your suggestions..
20th December 2011 From India, Nasik
dear Milind,
As per your company policy the retirement age is 55 yrs and you want to retain some of the critical employees then retain and convert them as consultants, except IT no other statutory like PF, ESI, PT etc are not applicable for consultants.
Hope you are clear.
Regards - kamesh
20th December 2011 From India, Hyderabad
Dear Milind,
Regarding EPF, there is no age bar. As long as they are in service, EPF is statutory. But pension contribution has to be stopped on the day of attaining 58 years. After the age of 58yrs, the employee will be eligible for both salary and pension.
20th December 2011 From India, Bangalore
dear abbas and kamesh
i have gathered somw information about it..
that is..
After age of retirement no employee can be full time employee. His/her PF contribution will remains continue. But contribution to the pension fund (8.33%) will be diverted to the provident fund (Whole 24%) and the pension fund account will be closed.
so.. is it correct?
waiting for reply
20th December 2011 From India, Nasik
dear milind,
yes, it is correct, after retirement, pf deptt. only accept 24% as pf alone(nothing in pension account) so, while generating pf challan, you have to reduce one subscriber in account no.10 also.
20th December 2011 From India, Delhi
P.F for retired employee.
There is no doubt that an employee who, having been member of the P.F. fund of an establishment, withdrew the full amount of his accumulations on the eve of his retirement as admissible under para 69 of the P.F. Scheme 1952, framed under P.F. Act 1952, is an ‘excluded employee’ and is not eligible to join fund under Para 26 of the scheme. However, once he is re-appointed in connection with the work of the company and his remuneration is within the wage limit of Rs. 6,500/-, he attracts the definition of ‘employee’ and the Act becomes applicable to him afresh. In Harrison Malayalam Ltd. & Ors v. RPFC & Ors. (Cal H.C) 2001 I LLJ 1160.
the company was held liable to cover an employee who took VRS and received his P.F. amount and was re-appointed on lump-sum basis thereafter.
HR & labour Law Consultant
Chipinbiz Consultancy Pvt Ltd.
21st December 2011 From India, Mumbai
Dear Friends,

Employment or RE-EMPLOYMENT of a retired employee in an estt, if an employer fails to cover an eligible employee, the employer will have to pay even the employee's contribution since an employer has been debarred in making recovery of member's subscription for more than one month's subs. as per provisions of para 32 of the EPFS. In this context there are two types of retired employees -

i. Those who retire from the estt. which are covered under EPFS & Act.1952 and

ii. Those who retire after working in estts. not covered under the Act.

In the former case, the retired employee having (if) settled his PF A/c. will not be eligible for PF on re-engagement. If he has not (been) settled his PF A/c. and reemployed then he is eligible to continue his PF A/c. and the estt. has to oblige him irrespective of whether or not drawing > Rs.6,500/.

Ref. case laws: 1. The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.)

2. The Calcutta Telephones Vs.Presiding Officer Central Govt. Industrial Tribunal, 2001-II CLR 108 (Calcutta H.C.)

(Sorry to say the full text of case laws are not readily available, since quoted from the reference books)

In the present case - The question will have to be decided upon whether the re-employed employee closed his PF A/c. or not on the first day of his rejoining and whether his salary is < or > than Rs.6,500/- p.m. on his re-appointment.

The question of full time or part-time doesn't arise as the part-time employee also to be covered if they are eligible. Even persons working from home (Like Beedi workers and an Accountant who writes the a/cs of the Estt. sitting at home) also to be covered under PF.

Here a question arises whether the retired employee was given extension of service beyond 55 yrs (the age of super annuation) or re-appointed afresh with new terms & conditions after he was fully settled (as he used the term " retained").

You may decide based on the facts of the case.

Dear friends, pl.don't decide a case with an intention to deny any one any benefits which are justifiably due to him. Laws are not meant to deny anybody but to safeguard one's legal rights.Rgds,

21st December 2011 From India, Bangalore
Dear Kumar. s.
Thank for referring those 2 ref: case laws. Kindly give us a small information that is there any new update in The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.) or still the same judgement is continuing.
Ratikanta Rath
23rd December 2011 From India, Durgapur
Dear Sir,
May i Know how do we calculate Compensation to a deceased employee under E.D.L.I. scheme if his service is 1 year or if his service is 5 year. what is the formula to determine compensation.what is the maximum limit under E.D.L.I. and how do we calculate pension under EPF act.
Vedvert Dalal (Executive HR)
24th December 2011 From India, Rohtak
Please suggest what kind of letter should be issued to an employee for whom we are extending the service after retirement???
14th May 2012 From India, Calcutta
Dear Soumita17,

Generally retired (after superannuation of 55/58/60 yrs as the case may be) persons when continued in the service, either in the same assignment or similar assignments, are treated as fresh appointments. To avoid legal complications, operational difficulties in PF, gratuity etc. and remove the blocks in the down the line promotions etc, they are superannuated as per the extand service conditions. This will enable the estt. not to middle with the policies for a particular person. Of course, there are exceptions, subject to the policy provides for it, service of a retiring person could be extended, on the same terms or with suitable modifications. This happens generally in top posts in scientific,technical cadres.

In your case you have to study your personnel policies,whether provides for such extension. If not, close his previous service on superannuation, settle his dues and reengage with fresh terms, may be with consolidated salary with/without addl. facilities like residence, car etc. or with same perks. Nevertheless, I shouldn't sound I'm against the extension. By all means you can extend his services on the same terms and conditions, but with appro. special provisions & approvals.

Depending on your decisions on the above, the terms and conditions of the apptt. letter would differ.

14th May 2012 From India, Bangalore
Maternity Benefit Act, 1961
Review and amendments of various labour laws is an ongoing process. The Maternity Benefit Act, 1961 was amended in 2008 by which for section 8, the following section was substituted:
“8(1) Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer a medical bonus of one thousand rupees, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.
(2) The Central Government may before every three years by notification in the Official Gazette increase the amount of medical bonus subject to the maximum of twenty thousand rupees”.
The Central Government vide notification No. S.O. 2016(E) dated 11th August, 2008 increased the amount of medical bonus from Rs. 1000/- to Rs. 2500/-. Further, vide notification No. S.O. 2016(E) dated 19th December, 2011, the amount of medical bonus has been increased from Rs. 2500/- to Rs. 3500/-."
14th May 2012 From India, Bangalore
Dear friend, The attached handbook (Highlighted in yellow chap.26 p.60..) would be useful. However you should refer to the Act for accurate workings. With regard, kumar.s.
14th May 2012 From India, Bangalore

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