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.

From India, Bangalore

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

From India, Chennai

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.
From India, Thiruvananthapuram
Aparajita Banerjee

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.
Aparajita Banerjee

From United States, New York

Dear All, Due to age factor, Is it mandatory to cover such employee under PF? Kindly clarify.
From India, Bangalore

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

From India, New Delhi

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.

From India, Bangalore

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.

From India, Pune

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
From India, Vadodara

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.

From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.