PF Eligibility - Need Help

Dear Seniors,
One employee who is above 60 yrs has recently joined in our company.
Is he eligible for PF Deduction? We are saying, we cannot deduct but he is saying he wants his PF to be deducted.
Pls help.
Thanks & Regards,
Shilpi Kar

Hi Shilpi,
First of all, if u can clarify what is the retirement age in your company? Based on the answer, then I can comment on this issue.
Amitava
9830990154

Hi Shilpi,
in that case u have two option one is hire the the person on consultant basis in that case no PF Deduction(he will not be in your company roll) .if employee want to contribute towrds pf in that case his full contribution will be towards PF(if he did,t withdraw their full amount from PF Department ) there is no deduction will towards Pension fund.if u have any other query let me know.
Thanks
Mahendra
09899649446
Sr.Executive HR
Dr.LalPathLabs

Dear Shilpi,
It is not the question of normal retirement age for that particular person, who has been appointed at the age of 60. Here you will heave to see the conditions prescribed in his appointment letter, whether he has been appointed as a consultant, or on regular basis, to go beyond 60th year of the normal age of retirement, with a special resolution of the company board. If he has been appointed as a regular employee the term of hi retirement would also be there in the board resolution or the appointment letter beyond the age of 60 years. In that case you will have to deduct PF subscription in fulfillment of the rule of the law.

PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi

PF deduction is nothing to do with the status of the employee. Whether a person is casual,temporary or confirmed or on contractual basis, he needs to be covered provided

1. If his Basic plus DA is 6500 or less

2. If his age less than 58 years

Condition 1 can be diluted by Companies and extend the benefit to all employees. Once it is diluted, then Companies can not restrict this to select individuals.

Condition 2 can be diluted on case to case basis. A person taken on contract basis after 58 can be extended this benefit. However, Pension will not be applicable and the entire deduction shall be credited to PF account.

It is purely based on individual contract. If an employee whether appointed on contract basis or on Confirmed rolls, if the appointment letter says that he would be covered for PF then you need to extend the benefit. If there is no mention, the employee can not seek any remedy as PF Act does not cover them and there is no violation by the Company. He can raise this issue only under the Contract Act. If he can prove that there was some mention somewhere, then he is eligible Otherwise, he will not be covered.

T Sivasankaran

Sorry to correct you coverage of employee under PF, ESI, etc employment laws does not depends their individual contract, if an employee appointed on contract basis or permanant, then he shall be covered under all applicable employment laws,
Even If a organisation entered in to contract with only two line agreement" you are appointed as so on so" whether on contract or permanant then he automatically will be covered if fullfil other conditions.
It does not matter whether there is specific clause in respect of " PF or other Employment laws applicablity."
It became applicable as soon as someone join the orgainsation and company shall responsible for all these.

As per the Employees Provident Funds and Miscellaneous Provisions Act, 1952 an employee is automatically ceased to be a Member of EPS (Employees Pension Scheme) after 58 years. But you can deposit Provident Fund amount (Excluding Pension Fund amount).
* An employee can be a member of PF but cant be a member of Pension fund after 58 years.
Pls check the Contract / Offer / Appointment Letter of that employee and if there is no clause of PF then you should not enroll him in PF.
Still if you want to enroll him only under PF (excluding Pension Fund) you may keep a written request from the concerned employee and also seek approval from the authorised reportin Officer of your esteemed Organization.
Thanks.
Soumya

As per the Employees Provident Funds and Miscellaneous Provisions Act, 1952 an employee is automatically ceased to be a Member of EPS (Employees Pension Scheme) after 58 years. But you can deposit Provident Fund amount (Including Pension Fund amount).
* An employee can be a member of PF but cant be a member of Pension fund after 58 years.

Again you are retriating the same things, for applicablity of PF it does not matter whether the same has been specifically mentioned in the Appointment Letter/ Offer Letter/contract etc etc. Even if not mentioned in agreement it became automatically operative.

Dear esskrr
I have mentioned the same Please read once again my reply I never said the coverage can be based on staus
There is no correction in fact You also have expressed the same view point
T Sivasankaran