What was the rationale of Recruiting an Employee of 60 Years age?
Rs12,000/- PM Salary paid to Senior Citizen Employee, is it on par with Applicable Minimum Wages
Please revert with your reply
1st May 2018 From India, New Delhi
(i) who having been a member of the fund, withdrew the full amount of his
accumulations on retirement or emigration or
(ii) whose pay at the time he is otherwise entitled to become a member of the fund
exceeds Rs. 6,500.00 p.m(amended to Rs15000)
The employee was never a member of EPF earlier.
Therefore I opine that he is entitled to be a member of EPF
1st May 2018 From India, Pune
Age of Retirement as per EPF Act:55Years
Age of Retirement as per EPS:58 Years (Presently enhanced to 60 Years with certain conditions) An Employee aged above 58 Years can not become Member of EPS unless, he was earlier Member of EPS for at least 10 years
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (herein after referred to as “the EPF Act”) is a very important Social Security Legislation enacted to Provide with a kind of Social Security to the industrial workers. As observed by the Supreme Court in Andhra University v. R.P.F.C. 1985 (51) FLR 605 (SC), It is a beneficent piece of Social Welfare Legislation aimed at Promoting and Securing the well being of the Employees.
The EPF Act Mainly Provides for Provident Fund, Superannuation Pension, Family Pension and Deposit Linked Insurance, which are, Primarily, Retirement or old Age benefits. Though the provision for terminal benefit of restricted nature was made in the Industrial Disputes Act, 1947 in the form of payment of retrenchment compensation etc., but the same benefit was not available to a worker on retirement, on reaching the age of superannuation or voluntary retirement. Keeping in mind such benefits and so as to extend the terminal benefits to retiring employees, whether on reaching superannuation age or in case of voluntary retirement, the EPF Act was legislated.
1st May 2018 From India, New Delhi
As per your submission he is not an excluded employee as mentioned by Mr. Nathrao. Therefore,the employee is entitled for PF. His EPS amount will also be deposited to PF account. PF act or any court award ( so far my knowledge goes) have not guided the specific date of retirement. Say EPS contribution will not be required to pay after attaining the age of 58. But it is not the age of retirement. There are many organizations where employees are retiring after attaining the age 60 or more.
Now come to what is the rationale behind engaging employee at the age of 60 or above. In India there are lot of employees after retiring from the job, very difficult to sustain their basic need with the help of EPS, PF, Gratuity, Leave pay and if there is any small savings. Bank interest return is not lucrative now a days to get return of your retirement savings. At the same time people are living on an average 75 years. It is a social need. Whoever has some scope to earn, they are trying their best to do so. There are organizations who are either as a part of CSR or for the need of the organization for certain skill of the employee engage them even after their retirement. There are unemployment as well for young generation. Now it is question of survival - one way old populations are increasing and huge young generation unemployment.
Hope this will clarify your query.
Thanks & Regds.,
S K Bandyopadhyay(West Bengal, Howrah)
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2nd May 2018 From India, New Delhi