Sir, I will complete 60 in the coming September 2016. I am working as a Deputy Manager in a Private Limited Company (MMC) registered in Maharashtra and my Company have branches all over India. I am an EPF pensioner after 58 years. If my Company extend my service further, upto what age limit, I can continue in my Company ? Is there any legal obligation as per Maharastra Shop & Establishment act for retirement ? I am physically fit & healthy : With Regards / Haridas
From India, undefined
From India, undefined
The retirement is to be decided by the standing orders or service rules or the letter of appointment of your organisation which fixes the age of retirement and Shops and Establishment Act has no role in it. However, there will be no contributions to your pension fund after 58 years of age.
B.Saikumar
From India, Mumbai
1898B.Saikumar
From India, Mumbai
. Respected Sai Kumar,
I worked for a Steel Plant at Jamshedpur from 01.02.1974 and voluntarily retired due to recession in the industry on 26.12.2002. My date of birth is 01.11.1948. At the time of my VRS my age was 54 years. I was a member of Family Pension Scheme and afterwards merged with EPS, 1995. My pension under EPS Scheme 1995 fixed at Rs.900/- per month with out any increase or decrease even after crossing the age of superannuation on the plea that I was sanctioned Reduced Pension because of the fact my age at that time was 54.
My contention is after my crossing over the superannuation age of 58 years I must be given full pension and not reduced pension which is not accepted by the PF Commissioner.
I feel it is not justified. Kindly advise.
From India, Jamshedpur
I worked for a Steel Plant at Jamshedpur from 01.02.1974 and voluntarily retired due to recession in the industry on 26.12.2002. My date of birth is 01.11.1948. At the time of my VRS my age was 54 years. I was a member of Family Pension Scheme and afterwards merged with EPS, 1995. My pension under EPS Scheme 1995 fixed at Rs.900/- per month with out any increase or decrease even after crossing the age of superannuation on the plea that I was sanctioned Reduced Pension because of the fact my age at that time was 54.
My contention is after my crossing over the superannuation age of 58 years I must be given full pension and not reduced pension which is not accepted by the PF Commissioner.
I feel it is not justified. Kindly advise.
From India, Jamshedpur
Respected Saikumar Sir,
Thanks for your swift reply. I would like to know below:-
1) If an employee continue his service after retirement age, will his name be on the master roll?
2) Will Company provide EPF (12%) contributions from employer side?
3) Employee is eligible for all leave benefits + bonus + gratuity ?
4) Company will maintain the same salary structure at the age of 60?
Your valuable guidance will be highly appreciated as our Head Office is in Mumbai.
With Regards / Haridas
From India, undefined
Thanks for your swift reply. I would like to know below:-
1) If an employee continue his service after retirement age, will his name be on the master roll?
2) Will Company provide EPF (12%) contributions from employer side?
3) Employee is eligible for all leave benefits + bonus + gratuity ?
4) Company will maintain the same salary structure at the age of 60?
Your valuable guidance will be highly appreciated as our Head Office is in Mumbai.
With Regards / Haridas
From India, undefined
Dear Saikumar Sir,
Appreciate your assistance on my below clarifications for better understanding and my updation:-
1) If an employee continue his service after retirement age, will his name be on the master roll?
2) Will Company provide EPF (12%) contributions from employer side?
3) Employee is eligible for all leave benefits + bonus + gratuity ?
4) Company will maintain the same salary structure at the age of 60?
Best Regards / Haridas
From India, undefined
Appreciate your assistance on my below clarifications for better understanding and my updation:-
1) If an employee continue his service after retirement age, will his name be on the master roll?
2) Will Company provide EPF (12%) contributions from employer side?
3) Employee is eligible for all leave benefits + bonus + gratuity ?
4) Company will maintain the same salary structure at the age of 60?
Best Regards / Haridas
From India, undefined
Dear Haridas
The following clarifications needed to understand the circumstances.
What is the age of retirement ? Why you were not retired on reaching the age of superannuation and allowed to continue even after retirement? Were you retired on reaching the age of superannuation and forefather were continued? If so were taken up as an employee with your name on the muster roll.? or were you continued under different status like "consultant"? Were the company deducting PF contribution from your remuneration even after your retirement?
B.Saikumar
From India, Mumbai
The following clarifications needed to understand the circumstances.
What is the age of retirement ? Why you were not retired on reaching the age of superannuation and allowed to continue even after retirement? Were you retired on reaching the age of superannuation and forefather were continued? If so were taken up as an employee with your name on the muster roll.? or were you continued under different status like "consultant"? Were the company deducting PF contribution from your remuneration even after your retirement?
B.Saikumar
From India, Mumbai
Respected Saikumar Sir,
I would like to furnish details as per your clarifications:-
What is the age of retirement ?
Age of retirement in our Company is 60 years.
Why you were not retired on reaching the age of superannuation and allowed to continue even after retirement?
Since my retirement age is 60 years, I am still continuing in my organisation and will retire in September 2016.
Were you retired on reaching the age of superannuation and forefather were continued?
Earlier one person retired at the age of 60 years.(Senior Executive) and I am the second one approaching to retirement.
If so were taken up as an employee with your name on the muster roll.? or were you continued under different status like "consultant"?
My name is already in the muster roll and I am regular and permenant employee.
Were the company deducting PF contribution from your remuneration even after your retirement?
After completion of 58 years, no contribution to pension fund. Thereafter employer & employee contribution is going to my
EPF A/C. I am drawing EPF pension also after 58 years.
In consideration of my experience, quality, capability, potential skill and caliber, they will consider to extend my service further subject to legal clearance as per Maharashtra Shops & Establishment Act. My post is Deputy Manager. Trust I clarified.
If I continue in service after retirement,
1) After 60 years, whether they will put my name in muster roll?
2) Whether they will provide EPF contribution ?
3) Employee is eligible for all leave benefits + bonus(ex-gratia) + gratuity
4) Will they keep me as a regular employee or consultant or contract basis.
5) I am medically & physically fit.
Awaiting your valuable guidance on my above case.
Best Regards / Haridas
From India, undefined
I would like to furnish details as per your clarifications:-
What is the age of retirement ?
Age of retirement in our Company is 60 years.
Why you were not retired on reaching the age of superannuation and allowed to continue even after retirement?
Since my retirement age is 60 years, I am still continuing in my organisation and will retire in September 2016.
Were you retired on reaching the age of superannuation and forefather were continued?
Earlier one person retired at the age of 60 years.(Senior Executive) and I am the second one approaching to retirement.
If so were taken up as an employee with your name on the muster roll.? or were you continued under different status like "consultant"?
My name is already in the muster roll and I am regular and permenant employee.
Were the company deducting PF contribution from your remuneration even after your retirement?
After completion of 58 years, no contribution to pension fund. Thereafter employer & employee contribution is going to my
EPF A/C. I am drawing EPF pension also after 58 years.
In consideration of my experience, quality, capability, potential skill and caliber, they will consider to extend my service further subject to legal clearance as per Maharashtra Shops & Establishment Act. My post is Deputy Manager. Trust I clarified.
If I continue in service after retirement,
1) After 60 years, whether they will put my name in muster roll?
2) Whether they will provide EPF contribution ?
3) Employee is eligible for all leave benefits + bonus(ex-gratia) + gratuity
4) Will they keep me as a regular employee or consultant or contract basis.
5) I am medically & physically fit.
Awaiting your valuable guidance on my above case.
Best Regards / Haridas
From India, undefined
Dear Tmrao79
My views on your query are asunder.
The pension calculation involves some mathematics and some details. In your case your pension calculations are subject to the following factors. Since you have chose to exit from service,before reaching the age of 58 years, you are entitled to only early pension and not superannuation pension.it also depends up on your pensionable service and pensionable salary.Your pensionable service will be the aggregate of your 'past service' which is from the date of joining to 15-11-1995 (prior to new EPS 1995) and your actual service which is from 16-11-1995 till the date of your exit.Your pensionable salary will be the average of monthly pay drawn by you for the period of 60 months preceding the date of exit.Again, your early pension is to be calculated both in respect of past service and actual service in the manner specified in sub para (4) of Para (12) of EPS 1995 and an aggregate of both yields the figure for your early pension. Since you adopted for option before 58 years, your early pension needs to be reduce by 4% for each year of shortfall of 58 years.
I request you to go through the provisions of paras (9)(10)(11) and 9(12) of EPS 1995 and since you have details with you, you can calculate the early pension and in case of any difference with the figure of PF dept, you can make a representation to them.
B.Saikumar
From India, Mumbai
My views on your query are asunder.
The pension calculation involves some mathematics and some details. In your case your pension calculations are subject to the following factors. Since you have chose to exit from service,before reaching the age of 58 years, you are entitled to only early pension and not superannuation pension.it also depends up on your pensionable service and pensionable salary.Your pensionable service will be the aggregate of your 'past service' which is from the date of joining to 15-11-1995 (prior to new EPS 1995) and your actual service which is from 16-11-1995 till the date of your exit.Your pensionable salary will be the average of monthly pay drawn by you for the period of 60 months preceding the date of exit.Again, your early pension is to be calculated both in respect of past service and actual service in the manner specified in sub para (4) of Para (12) of EPS 1995 and an aggregate of both yields the figure for your early pension. Since you adopted for option before 58 years, your early pension needs to be reduce by 4% for each year of shortfall of 58 years.
I request you to go through the provisions of paras (9)(10)(11) and 9(12) of EPS 1995 and since you have details with you, you can calculate the early pension and in case of any difference with the figure of PF dept, you can make a representation to them.
B.Saikumar
From India, Mumbai
Haridas KR
I have gone through the details provided by you. To the best of my knowledge, the Maharashtra Shops and Establishments Act does not govern the issue of your retirement. Either the company service rules must have fixed the age of retirement or the terms of your letter of appointment. My replies to the queries raised by you are as under.
1) They can extend your age of retirement., having regard to your fitness and efficiency if the same is provided either in the service rules or agreed up on in the letter of appointment.If they extend your age of retirement, you will continue to be a regular employee and therefore can be on their rolls.However, whether you will be continued as a regular employee or re-employed as a consultant after retirement will be at the entire discretion of the company.
2) They can contribute to PF only even after 60 years of age if you are continued as regular employee and if you do not withdraw the amount but not to pension fund.
3) If you will be considered as regular employee, you will be admitted to benefits like leave and bonus as are admissible to other regular employees.
Please note that these are only my views meant only for your understanding and guidance.
B.Saikumar
From India, Mumbai
I have gone through the details provided by you. To the best of my knowledge, the Maharashtra Shops and Establishments Act does not govern the issue of your retirement. Either the company service rules must have fixed the age of retirement or the terms of your letter of appointment. My replies to the queries raised by you are as under.
1) They can extend your age of retirement., having regard to your fitness and efficiency if the same is provided either in the service rules or agreed up on in the letter of appointment.If they extend your age of retirement, you will continue to be a regular employee and therefore can be on their rolls.However, whether you will be continued as a regular employee or re-employed as a consultant after retirement will be at the entire discretion of the company.
2) They can contribute to PF only even after 60 years of age if you are continued as regular employee and if you do not withdraw the amount but not to pension fund.
3) If you will be considered as regular employee, you will be admitted to benefits like leave and bonus as are admissible to other regular employees.
Please note that these are only my views meant only for your understanding and guidance.
B.Saikumar
From India, Mumbai
No labour law in India has regulated the retirement age by fixing a particular age beyond which an employee should not work. Even in Employees provident Fund and Misc Provisions Act, there is no retirement age though under the Pension schemes, a retirement age, ie, 58 is given.
In the absence of standing orders or service rules, normally the appointment letter will lead you to retirement age. Haridas being in managerial capacity, his service conditions will be governed by service rules as applicable to managers or the appointment orders. Giving extension is also purely a management prerogative and no employee shall demand that his service should be extended and that also in the manner in which he thinks. If the management is ready to give extension he can take it and the remuneration that the company may offer need not necessarily be the same or with similar benefits that are available to other employees. As such if the management would like to give extension after paying the gratuity and other retirement benefits then extended period of service will be purely on a revised service rules. Again there is no hard rule which states that all employee should have equal service rules but there can be different service conditions to different category of employees. As such there can be a fixed term appointment for 1 year or 2 years for those who have crossed 60 years of age. For them there can be a condition that PF will not be contributed since they should have already withdrawn the PF accumulations and would be PF pensioners. There will not be any illegality in excluding such an employee from PF.
In short, extension of service is purely an offer from the management with service conditions attached to it. It can be similar to on roll employees or can be different. If the management choses the first one, good, you are lucky to have an extension with all benefits and in case the management decides that a new appointment shall be given after settling the dues like gratuity and allowing the employee to have his PF accumulations and pension, then it can be without PF benefits.
Now, in the latter case also, if the employee works for another five years, then he will again be eligible for gratuity because there is no age bar or limitations for the manner appointment as to regular or fixed term under Payment of Gratuity Act.
With regard to Bonus, again the company can have two policies, one for the regular employees and another for those working under contracts. If the management restricts payment of bonus to the latter section of employees as per Payment of Bonus Act, then you can not demand it if your bonus qualifying salary is more than Rs 21000 per month. There can be a different settlement as applicable for on roll employees but very rarely there can be a a similar one for others.
Madhu.T.K
From India, Kannur
In the absence of standing orders or service rules, normally the appointment letter will lead you to retirement age. Haridas being in managerial capacity, his service conditions will be governed by service rules as applicable to managers or the appointment orders. Giving extension is also purely a management prerogative and no employee shall demand that his service should be extended and that also in the manner in which he thinks. If the management is ready to give extension he can take it and the remuneration that the company may offer need not necessarily be the same or with similar benefits that are available to other employees. As such if the management would like to give extension after paying the gratuity and other retirement benefits then extended period of service will be purely on a revised service rules. Again there is no hard rule which states that all employee should have equal service rules but there can be different service conditions to different category of employees. As such there can be a fixed term appointment for 1 year or 2 years for those who have crossed 60 years of age. For them there can be a condition that PF will not be contributed since they should have already withdrawn the PF accumulations and would be PF pensioners. There will not be any illegality in excluding such an employee from PF.
In short, extension of service is purely an offer from the management with service conditions attached to it. It can be similar to on roll employees or can be different. If the management choses the first one, good, you are lucky to have an extension with all benefits and in case the management decides that a new appointment shall be given after settling the dues like gratuity and allowing the employee to have his PF accumulations and pension, then it can be without PF benefits.
Now, in the latter case also, if the employee works for another five years, then he will again be eligible for gratuity because there is no age bar or limitations for the manner appointment as to regular or fixed term under Payment of Gratuity Act.
With regard to Bonus, again the company can have two policies, one for the regular employees and another for those working under contracts. If the management restricts payment of bonus to the latter section of employees as per Payment of Bonus Act, then you can not demand it if your bonus qualifying salary is more than Rs 21000 per month. There can be a different settlement as applicable for on roll employees but very rarely there can be a a similar one for others.
Madhu.T.K
From India, Kannur
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