Employees Over 60: Can We Continue Their PF and Pension Contributions as Usual?

Our employees exceeding 60 years of age are still in service. May I continue their PF deduction as before with the Pension contribution? Please suggest.

Thank you,

Regards

There is no age limit for EPF contribution. However, the contribution to the pension fund is to be stopped from the date of attaining 58 years.

Regards,
Abbas. P. S.

Dear Nagesh,

There is no age bar for contribution to PF. But the contribution to the pension fund has to be stopped from the date of attaining 58 years.

For example: if the Date of Birth is 2.10.1952, completion of 58 years will be on 1.10.2010. In this case, the contribution has to be paid till 1.10.2010. From 2.10.2010 onwards, he is eligible for a pension along with salary.

If 58 years have already been completed, apply for a pension immediately and contact the Office of PF Commissioner to revert the EPS contribution after the age of 58 years as the employer's contribution to PF.

Abbas.P.S

Mr. Abbas is right. His contribution, along with the employer's contribution, will go to EPF only.

Regards,
N. N. Tiwari

I understand that an employee who has been a member of PF and has withdrawn the PF benefits after attaining at least 55 years of age or the age of superannuation, or an employee who is in receipt of PROVIDENT FUND PENSION (not any State or Central Government pension) is an excluded employee. As such, if an employee continues his service after 58 and is in receipt of Provident Fund Pension, there is no need to contribute even towards Provident Fund. Certainly, if the employee and employer wish to contribute, PF contribution is possible, but restricting the full contribution to Provident Fund alone.

Regards,
Madhu.T.K

It means that the PF contribution of the employer will be 3.67% only, as I know the rest 8.67% goes into the pension scheme.

Regards,
Salman

Dear Nagesh,

Mr. Abbas has clearly explained the matter with an example. He is right. To elucidate further, please note in your annual account slip (Form 23) only the PF contributions are reflected, and this is explicitly explained on the reverse of the account slip. The Pension amount is maintained by the EPFO as a corpus fund, and upon your furnishing details in Form 10C or 10D, the pension is worked out. In other words, if you contribute any amount to the Pension account after 58 years of age, it does not accrue in the employee's account and actually goes into the corpus account. Therefore, it is important that you do not contribute to the Pension account after 58 years.

Trust the matter is clear.

M.V. KANNAN

Dear Nagesh,

The matter in query is interpreted rightly by both Mr. Abbas and Mr. Madhu. The choice is yours, employee and employer, whether to choose to contribute or not as the matter became optional.

However, you mentioned the age of the employee being 60. Therefore, prior to 2 years, what was the position of contribution? Because after 58, pension contributions have to be stopped mandatory.

Please check this point and proceed with a remedy.

Regards,
KIRAN KALE

Dear Madhu.T.K,

Those who have 9 years and 6 months or more of EPS applicable service and have left can avail PF pension upon attaining the age of 50 years. If such employees again come under EPF, the pension they availed will not be reviewed unless there is an error from PF authorities. The full contribution will go to the individual PF account. I am unsure of the significance of the age of 55 years in this regard.

Abbas.P.S

There is no age bar for contribution to PF. However, the contribution to the pension fund should be stopped.

Regards,
Sameer Pandey

Dear Cite HR Colleagues,

One of our employees joined in January 2010 and has completed 58 years in September 2010. The issue is that he has only worked for 9 months in his new PF account. So, is he eligible for a pension or not? Please suggest.

Regards,
Parvathi Shetty

You have mentioned that the employee has 9 months of service in the new job. What about the previous jobs? If altogether he has 9 years and 6 months or more of service in EPS, he is entitled to get a pension. Otherwise, apply for withdrawal benefit.

Regards,
Abbas P.S

This means that the PF contribution of the employer will be 3.67% only, as I know the rest 8.33% goes into the pension scheme.

Regards,
Manish Dave
[Phone Number Removed For Privacy Reasons]

Even though the pension contribution is 8.33%, there is a ceiling for pension contribution, i.e., Rs. 541. Accordingly, the rest of the amount will go to the individual PF account.

Regards,
Abbas P.S.