Korgaonkar K A
V. Balaji
Ir & Hr
Service As Dgm-hr/legal
Usha Dcruz
Hr Manager
Human Resources Exicutive
+5 Others

Thread Started by #Usha Dcruz

please clarify whether payment of PF is mandatory for the employee whose is on contract and has cross 60 yrs age. Regards Usha
26th March 2013 From India, New Delhi
There to no bar to deposit PF after 58 / 60 years of age....
26th March 2013 From India, Pune
What About the PF of contract employee, is it necessary to pay him PF
27th March 2013 From India, Delhi
Dear Usha ji,
There is no age limit in PF. As long as employee is in service you need to deduct his PF and remit it in the PF account even though the employee is on contract / contractual.
After 58, the both the shares are credited in PF account no. 1.
27th March 2013 From India, Mumbai
The HR consultants are advising the managements there is no need to deduct pf both the shares whose age crossed 58 years? is this practice right ?
27th March 2013 From United States, Cambridge
Dear Apparao23,
Contribution towards pension stop at 58. Pension is contributed by employer.
After 58, both employee and employer share goes in to PF account only. There is no stoppage of PF at 58. PF continuous till employee continue with employment.
27th March 2013 From India, Mumbai
If the employee was earlier a PF member and he has withdrawn the full amount of accumulations in the PF after his retirement is not to be covered in EPF again.(see para 26).But a person retired from govt service is employed in Co where EPF is applicable he shall be covered.He will not be covered in pension scheme after 58 years.
27th March 2013 From India, Thiruvananthapuram
Dear Varghese ji,
Thank you very much for differing with me. This kind of issues are very uncommon. I recollect something like what you are saying.
I need to study Para 26 again and interpret it correctly. I need some time since I am not in a position to look in to it by tomorrow afternoon / evening.
This is the way we learn. I once again appreciate your response.
27th March 2013 From India, Mumbai
I hope this helps... Freshers remember this useful PF Calculation Info -
Provident Fund % & A/c No.
Employee 12%
Employer 13.61%
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)
Total 25.61%
28th March 2013 From India, Madras
Hi PF Contribution for Employee and Employees Both Share Remit in EPF Account only u cant show Pension Fund Account Regrads Mahadeva H N
28th March 2013 From India, Bangalore
Dear Varghese ji,
It was an opportunity for me to read the Para 26 again.
I have not came across such provision stating - once the PF is settled on retirement, person can not be a member of PF again. In my view, person can be a member of PF even his account is settled on retirement.
However, once member applies for monthly pension, he can not be a member of pension scheme again.
Once can differ me with support.
28th March 2013 From India, Mumbai
Dear Vaeghese ji,
Once again I have to correct myself. What you said is correct. But it is not in Para 26.
Para 2(f) of the scheme defines 'excluded employee' means:
(i) an employee who, having been a member of Fund, withdrew the full amount of his accumulations on retirement after 55 or on taking employment abroad.
(ii)an employee with salary exceeds 6500/- pm at the beginning of his employment. And
(iii) an apprentice.
Thanks again for your posting.
28th March 2013 From India, Mumbai
Dear Usha

An employee whether contractual or otherwise is required compulsorily to be a member of PF irrespective of his age. Please note that the contract employees are not excluded in the definition of employee as given in sec. 2(f) of the PF Act.

However, if you go through the provisions of the PF scheme, there is a provision under para 2(f) in which the excluded employee has been defined. Mr. Varghesema thew and Mr.Kargaonkar ji has explained in details about the provision which will help you to decide whether the concerned employee is an excluded one or not under the provisions of the PF Act/ Scheme.

I would like to point out one more thing; in case you find that the concerned employee is a excluded employee , please obtained his PF clearance details with supporting evidence and keep it in your records and also obtain a letter from the concerned employee declaring that he has crossed the age of 55 years and has taken his full amount of PF accumulation in the fund as per clause (a) or (c), as the case may be, and not willing to be a member of PF. Keep this in your records for future reference; this may be required by the Authorities at the time of inspection etc.

29th March 2013 From India, Delhi
dear ushaji,,
good morning,,
once member become epf member than payment of epf is mandatory,,but if member withdraw his epf amt & he rejoin at basic salary more than 6500 than pf deduction is not mandatory

30th March 2013 From India, Surat
What about a candidate joining an organization - may be aged lesser than 50 years with a basic salary say of Rs. 6600/- (who has never been a member of PF earlier or withdrew all his EPF benefits) ?
V. Balaji
30th March 2013 From India, Madras
Dear Balaji,
If a person never been a member of EPF or withdrew all his EPF benefits and joins an employment at salary above Rs. 6500/-, he has an option to become a member of EPF or not. Such person is an 'excluded employee' within the meaning under Para 2(f)(ii).
30th March 2013 From India, Mumbai
Thanks Mr. Kargaonkar, But PF Act is not clear on this. Do we have any document or any sanctity in support of this claim? If so, it would be nice to have one to substantiate this. V. Balaji
30th March 2013 From India, Madras
Dear Members, Can anybody else from forum explain the Act on the issue raised by our friend Balaji?
30th March 2013 From India, Mumbai
Dear Mr.Korgaonkar, You have already cleared his doubt by mentioning the" Para 2 (f)(ii)" of PF Act in your post. reg, Anirudh
1st April 2013 From India
Sorry to differ with you seniors
After 58 years if Employer and Employee both agree to dedcuct PF they can go on otherwise there is no compulsion to deduction PF after 58 years, in my firm we usually ask employee to resign and rejoin next day if employee completes 58 years of age.
If the both agreed 24% contribution will go to Employee Provident Fund.
2nd April 2013 From India, Coimbatore
Dear Dinesh ji,
One can differ with any one. But it is appreciable if one differ with fundamental study.
Please give your employer name. PF authority will tell you.....
My humble request to you to kindly take proper advise and follow the advise.
In this thread also you will get answer but you want to differ with the answer.
2nd April 2013 From India, Mumbai
Mr. Keshav Korgaonkar I am sorry, i may be wrong, this is what we were doing in my previour company, any way good learning once again i will go through the act. Respectfully Yours
3rd April 2013 From India, Coimbatore
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