Can Retirees Working Again Still Get PF Contributions? Seeking Advice on Eligibility

If a person retired from a company and is covered under PF, receiving a pension from the PF Organization, and then begins working for a security company, would they still be eligible for PF contributions? Kindly advise.

If he retired, enjoyed PF benefits, and then rejoins your organization, you are not required to provide PF benefits to him. You only need to cover him under ESI if his salary falls within the ceiling limit.

Regards,

Prathap Shetty
Sr. Manager HR
Mandovi Motors

There is nothing illegal or wrong in PF contribution by an employee who is receiving PF Pension. The only thing is that the employer's contribution to the Pension Fund at 8.33% shall not be made for him. After all, the Provident Fund is a kind of savings or investment, and an employee shall not be denied the opportunity to contribute towards it due to his age.

EDLI contribution shall also be made by the employer in respect of such employees.

Regards, Madhu.T.K

Mr. Madhu is quite right. An employee's PF can be deducted irrespective of age for pension fund contribution, except for employees who are over 58 years old or already receiving pension benefits.

Best Regards

Mr. Madhu is correct in this regard. There is no age bar to contribute to EPF and EDLI. The age of 58 years is only applicable to the Pension Scheme. Accordingly, as Madhu specifically stated, for those drawing a pension from EPS, the full employer's contribution will be credited to EPF.

Abbas P.S

Dear Sirs, I seek clarification regarding our 61-year-old security guard's salary structure, which is as follows:

Basic - 4000
Special Allowance - 2000

Currently, we are not deducting any PF from his salary. My questions are:

1. Should the PF deduction be 12% of 4000, amounting to 480 Rs?
2. As an employer, what percentage of contribution are we required to make to PF A/c 1 or 3.67% only?

Additionally, I am inquiring about the EPF Administration charge of 1.1%. Is it applicable to the total Basic or only on the ceiling limit of 6500?

Regards,
Ranjit

1. Employee contribution - 12% of Rs. 4000/-
2. Employer contribution - 12% of Rs. 4000/-
(After the age of 58 years, no contribution to EPS. Accordingly, full contribution has to be paid to the individual account.)
3. Administration charge on the salary on which PF contribution is made.

Regards,
Abbas. P. S.