Understanding PF Enrollment: Is There an Age Limit Beyond 58 Years?

Hi, can anyone tell me the maximum age for enrollment in PF? I know that if a person has crossed 58 years, they are not eligible for enrollment in the Pension scheme.

L. Balaji

Yes, a person who has completed 58 years of age or one who is already receiving a pension cannot become a member of EPS. However, at the same time, he can be a member of the Employees' Provident Fund. His contribution along with the employer's contribution will go to EPF only.

Regards, Madhu.T.K

Hi,

After 58 years, you cannot provide employment in the industry on the actual payroll as per rules; you can hire on a contractual basis. If you choose to employ someone after 58 years on the payroll, then you must deduct PF if their Basic Salary is fixed at less than Rs. 6500/- per month.

Thanks & regards,
Manoj Kumar

If an employee joined the organization at the age of 60, is the deduction of PF valid? Does it make any difference if the internal rules of the organization state the age of retirement as 60?

Please advise.

The age of superannuation is an internal matter of an organization. Therefore, if the policies of the company permit, you can employ persons above 60 years of age also. There is nothing wrong in deducting EPF also. However, the entire 12% payable/contributable by the employer should go to the Employees Provident Fund only and not like 8.33% to the Pension Fund and the balance to EPF.

Regards,
Madhu.T.K

Dear,

If you hire any person after the age of 60 years, this is a violation of the rules. If you have hired any person over 60 years, then you should have a certified standing order in the company specifying the age limit, otherwise, you can hire the person as a consultant or on a contractual basis as per the agreement.

Thanks & regards,
Manoj

Dear Friends,

As per the Employees' Pension Scheme, if the employee crosses the age of 58 years, he is not eligible for the EPS scheme. However, he is eligible for the Provident Fund. Permission may be required from the RPF office for this, as the interest rate will be calculated. It is also the duty of the employer to inform the employee in writing using Form 10. These matters depend on the company's policy. If the management is unwilling to put the employee on the payroll, then he is also not eligible for that.

Regards,
PBS KUMAR

Dear Friends,

As per the Employees Pension Scheme, if the employee crosses the age of 58 years, he is not eligible for the EPS scheme. However, he is eligible for the Provident Fund. Permission may need to be obtained from the RPF office, as the interest rate will be calculated. It is also the duty of the employer to inform the employee in writing using Form 10. These factors depend on the company's policy; if the management is unwilling to put the employee on the payroll, then he is not eligible for that either.

Regards,
PBS KUMAR

Dear Mahesh Patel,

Yes, Mr. PBS Kumar is correct. Before engaging, it is better to inquire with the RPF office or consider engaging on a contract basis. If you require a draft letter, please feel free to ask for the same.

Thank you.

Dear All,

Please let me know if allowances can be included in the calculation of ESI. If we consider the following salary structure:

BASIC: 5000/-
HRA: 2500/-
TRANSPORT ALLOWANCE: 2000/-
MANAGEMENT ALLOWANCE: 510/-

After that, can we calculate ESI for this individual, or is it exempt from ESI? Please clarify this.

Manoj Kumar

Dear Aby Jose,

As Mr. Madhu specifically stated, joining and retirement are internal matters of the organizations, which are to be dealt with separately. Regarding enrollment in EPF and EDLI, there is no age bar, except in the case of EPS. The Act never restricts in terms of age. Accordingly, there is no question of quoting the provision. As the Act is silent on this issue, it is the obligation of the concerned parties who segregate before and after 58 years to quote their base/provision.

Abbas.P.S

EPF and EPS Enrollment for Employees Above 58 Years

Regarding a new employee above 58 years joining a company, he is exempted from EPS. But is it mandatory to put him under EPF? Can the management refuse it even if he requests? Is it necessary to ascertain whether he was in EPF or not in his previous employment, and whether he is receiving a pension?

Rejoining EPF After Retirement

What about the employee who, after completing 10 years in EPF, has retired from EPF, received all his dues, and closed his account at the age of 48? He wants to join a company now at the age of 51. Is it mandatory to put him under EPF once again? Can the management refuse his request?

Part-Time Employment for 58+ Years

Can we employ these 58+ years persons as part-time employees with a minimum work of around 6 hours a day? They also do not want any deduction from their salary. Can we exempt them from EPF and ESI? What is the procedure to be followed regarding attendance and salary registers and payslips? Is there any difference between skilled and unskilled workers in this 58+ category when they want to join for a part-time job?

Please bear with me for asking too many questions. But I need answers to enable me to be careful in such matters.

Regards

EPF and ESI Contributions for Employees Over 58 Years

If you employ someone over 58 years of age, you should pay EPF to them, provided they are not a PF pensioner or have not withdrawn the PF accumulations upon reaching 55 years of age. The responsibility is on the employer to determine if they should be enrolled. For this purpose, we use Form 11, where the new joinee will declare if they were a member of PF earlier, not a member, or were a member but have withdrawn the PF.

A member who withdrew the PF at 48 years of age will not become an excluded member. Therefore, if such an employee joins you, you should provide them with PF.

The time of engagement and the prorated wages you give will not affect their registration. If they are not a PF pensioner, were not a member of PF earlier, and are paid no more than Rs 15,000, you should provide them with PF and also ESI. While you need not contribute towards the Pension Fund, the entire contribution of 12% should go to their Provident Fund only. The only way to exclude them from ESI and PF is to increase their salary. For ESI, the threshold is now Rs 21,000! Continuously increasing the salary to escape liability with each increase in the salary ceiling under these Acts is not advisable. However, consider the benefits the employee receives from these schemes. Under ESI, your contribution of just 4.75% frees you from obligations if an employee has an accident. Being relieved from liabilities under the Workmen's Compensation Act due to ESI means you gain more than you spend temporarily. Similarly, the EDLI scheme attached to the Provident Fund is a great relief to dependents in such situations.

Better make the employees aware of the schemes and introduce them to all who work for you.

Regards, Madhu.T.K