One of our directors, who is 70 years old, is drawing remuneration with a basic pay of more than 1 Lakh. We are still paying him PF but no EPS contribution. Is it possible to stop his PF contribution, or do we have to continue paying it even though his basic salary is high because he is still on the payroll and deductions were previously made?
From India, Bengaluru
Acknowledge(0)
Amend(0)
From India, Bengaluru
Acknowledge(0)Amend(0)
No. Once a person has an existing PF account you need to continue deducing his PF and depositing it into his account as long as he is employed and getting a salary.
From India, Mumbai
Acknowledge(0)Amend(0)
2508From India, Mumbai
Acknowledge(0)Amend(0)
Prudence in Terminating PF Contributions
PF is a very remunerative investment option. Having made contributions until his 70 years of age, would it be prudent to terminate it suddenly? PF authorities may view this as non-compliance since you have been continuing to pay him a salary all along.
From India, Mumbai
Acknowledge(0)Amend(0)
PF is a very remunerative investment option. Having made contributions until his 70 years of age, would it be prudent to terminate it suddenly? PF authorities may view this as non-compliance since you have been continuing to pay him a salary all along.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Pension fund contribution beyond 58 years of age.pdf