Rehired After Retirement: Are You Eligible for Employee Provident Fund Membership?

Does an employee who has been employed after retirement become a member of the Employee Provident Fund? Please guide.

Thanks and Regards,

Ms. Ramneet

Hi Ramneet,

A person who has completed 58 years of age and retired from the services of the company, and has taken full and final settlement of PF from his employer on retirement, is an excluded employee. For him, joining PF is not compulsory if he gets reemployed after retirement.

Yes, an employee who is retired can be a member of EPF. The formalities to become a member are the same: to fill Form-2 (nomination & declaration form) duly attested by the employer. Regarding contributions, once an employee has completed the age of 58 years, no payment of contribution can be made in EPS, i.e., 8.33% of the pensionable salary. The employer's contribution should be paid fully at 12% rather than (3.67% + 8.33%). The employee's contribution should remain the same.

Thanks & regards,

Sumit Kumar Saxena
9899669071, 0120-4131277

Dear Sumit,

Yes, it's good information. My question is, after retirement, will employees be eligible for EPS?

Regards,
Charvaka Reddy

As far as my knowledge goes, a retired employee is not eligible for EPS.

Regards,

Ms. Ramneet

Dear Friends,

It is really not a matter of eligibility insofar as a Retired employee being re-employed in an organization. Yes, a Retired person is deemed to be an Excluded Employee under the Act and need not be extended the benefit of PF. Usually, Retired persons are given a fixed-term (Annual?) Post-Retirement Service Contract and are excluded from coverage under PF. However, the Company, in their discretion, may decide to cover such re-employed persons under the provisions of PF. This is a rare occurrence though.

Cheers!!! Vasant Nair