Tsivasankaran
Consultant
N.Mohan
Hr Professional
V.D.PATEL
Consultant
Aparajita Banerjee
Manager - Hr
+2 Others

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Dear All,
I have come across a situation where a 60 years old person, with no dependents, has approached for a job. We are interested to take him and definitely his pay will be less than Rs.15000/-. I need clarification on whether we can exempt him under PF and cover under only ESI so that he can avail benefit under ESI Act. Request you all for suggestion and provisions of both the act.
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Yes. You can cover him under ESI. Coverage of employees under EPF above the age of 58 is not mandatory. Even if they are covered, they can be covered only for PF and not for pension. Hence my advice always is not cover any employee aove the age of 58 under PF
Of course irrespective of the age, coverage under ESI is mandatory
T Sivasankaran
He can be covered under ESI .If he is not an excluded employee he can be covered under Epf also. But not under employees pension scheme.
You have to give coverage to the employee under PF and ESI both. However since his age is 60, he will be covered under EPF only, Pension scheme will not be applicable to him.
Thanks.
Aparajita Banerjee
Dear All, Due to age factor, Is it mandatory to cover such employee under PF? Kindly clarify.
Dear
Age is not a factor for PF coverage. There is a term called "Excluded Employee" under Employees' Provident Fund Scheme which states that an excluded employee means who, having been the member of the Fund, withdrew the full amount after attaining the age of 55 ( probably it has been recently amended to 57 yrs age) or an employee who is otherwise entitled to but whose pay at the time of joining exceeds 15,000/- per month or an Apprentice.
If your case satisfy any of the above condition, then the employee is excluded employee otherwise he will be covered under PF.
Thanks and regards,
S K Bandyopadhyay
USD HR Solutions
+9198310 81531


Mr.S K Bandyopadhyay,
Thanks for your opinion. But he is 60 years old, will be drawing salary of 12000/-pm and nowhere an employee in the past. All these days he was self employed and due some circumstances he wants the job now.
Dear Mr. N Mohan,
I would suggest if he has already at the age of retirement & organization needs his expertise, can be appointed as "retainer/ consultant".
So in that case, He can get the monthly remuneration on by producing bill.
Organization is not obliged to pay any retrial benefits in such cases.
Thanks,
Mona
Dear Mr. N Mohan The best advice is to appoint him on consultancy basis so that you need not to comply any statutory act .Also he will get full amount after IT deduction . V D Patel
Dear All,
An excluded/Exempted employee under EPF wants to be covered under PF now. Even the Management is ready to cover him under the Act. For last 4 years, due to his higher salary, was not covered under EPF.Can we do so ? if we cover now what will be the position of previous 4 years. Please suggest.
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