Navigating PF Contributions for Employees Retained After Retirement Age: What Are the Legal Requirements?

We have retained some employees in service after their 58 years in our company. Retirement age is fixed at 58 years, but we retained them as they are still efficient and want to work. My question is, is it compulsory by law to deduct their PF contribution? Should the employer add the full 12% to the PF account or only 3.67% to EPF?

Waiting for your suggestions.

If they complete 58 years, bring them into a consultant role; then there is no need to pay anything once all settlement is over. If you want them to continue in the role, all PF contributions go to AC No. 1 because they will receive a pension after 58 years.

Hope this will clear things up. If you have any doubts, call me.

Regards,
Eswar K.
Manager - HR
[Phone Number Removed For Privacy Reasons]

EPS Contribution After 58 Years of Age

After attaining 58 years of age, the EPS Contribution (by Employer 8.33%) will be added to the EPF Contribution (by Employer). This means that even in such conditions, the employer has to contribute the same 12%.

Hi Seniors, we have retained some employees in service after they turned 58 years old, as our company's retirement age is fixed at 58 years. We kept them as they are still efficient and willing to work. My question is, is it compulsory by law to deduct their PF contribution? Should the employer add the full 12% to the PF account or only 3.67% to EPF?

Looking forward to your suggestions.

Regards, Ankita

Procedure for Starting Pension Benefits

1. What is the procedure to start pension benefits for those employees?

2. Some of them want to withdraw their pensionable amount while they are still working.

Sir, what should I do? Please guide me.

Thanks,

Ankita

They have to fill up Form No. 19 and 10C forms, but 8.33% of the pension fund cannot be withdrawn if the employee has completed 10 years of service.

Thank you.

PF can continue after 58 years. The employee can claim a pension while still in service. When uploading files in e-sewa and making contributions, you have to make payments only in the Provident Fund Account. There is no need to pay contributions in A/c No 10. In my organization, there are around 15 employees who are still in service, contributing to PF, and simultaneously receiving a monthly pension from the Pension Scheme 1995.

Thanks & regards,
Gaurav Upadhye

You have to submit Form 10-D for claiming the pension. Even though the employee is still alive, please submit the details, like the Descriptive Roll of Family members, e.g., spouse, children age proof documents, etc., along with the 10-D, to avoid any complications.

Thanks & regards,
Gaurav Upadhye.

Dear Ankita, I am explaining the procedure for claiming the PF amount.

Procedure for Claiming PF Amount

(1) If your employee has attained superannuation but continues their employment with you without any break, you will have to continue deducting their PF. The entire company contribution of 12% has to go to A/c No. 1.

(2) If the employee has completed 10 years (or more) of service at the time of superannuation, then they are eligible for a monthly pension. You can fill up Form 10-D and submit it with the necessary enclosures.

(3) If the employee has not completed 10 years of service at the time of their superannuation, then please submit Form 10-C. They will receive the accumulations of their pension account.

Regarding the claiming of PF (A/c No. 1), as long as the person continues in employment and PF is being deducted, you should not submit a claim in Form 19. Once the person leaves the employment, they can submit the same.

All the above-mentioned forms are available on the PF website and can be downloaded.

Regards

Hi, please note the following:

1. If the employee reaches the age of 58 and retires, you may settle his PF account as superannuation.
2. After the settlement of his PF account, you can re-employ him without deducting PF.

Regards,
Vijay

What Mr. Vijay is quoting is okay but not professional because if the employee is not a member of PF, they will also cease to be a member of the EDLI scheme. If the employee passes away while in service and after reaching the age of 58, their family members will not receive the EDLI benefit. Please note.

Good Practices for HR Personnel

As progressive HR personnel, we should establish good practices in the organization.

Thanks & regards,
Gaurav Upadhye.

I have the same problem, but the employees have neither attained the age of 58 nor completed their 10 years of job tenure, yet they want to withdraw their full pension fund amount.

Thanks & Regards,
Parwej Khan

After the age of 58 years, when the concerned employee withdraws the amount of PF, it depends on your management whether to deduct the PF amount or not. However, management is not bound to deduct. If management opts to deduct the PF amount, in this case, the whole deducted amount will be deposited in PF A/c No 01 only.

In the case where the concerned employee does not withdraw his/her PF amount and continues the job, in this case, PF contribution must be deducted and deposited in A/c No 01 only.

During the service period, no member can withdraw his/her pension fund amount; they can only withdraw the PF amount from A/c No 01.

Thanks,

S.L. Chopra

If an employer contributes to the PF account for an employee even when they are 58 years old, how can the employee withdraw the PF amount?

As-salamu alaykum, Sir,

If an employer contributes to the PF account for an employee even when they are at the age of 58, how can the employee withdraw the PF amount?

You should pay 12% of PF contribution. Hope the last comment will be useful for you.

[Link to the source: https://www.citehr.com/512817-pf-contribution-above-58-years.html]

Hi,

One of my employees turned 58 in December 2017 (his joining date was 01/4/17, meaning he has only been working for 9 months) and he is still with our organization.

Now, what forms should he fill out for this situation? And how should we handle his EPF and EPS share?

Sir,

In my organization, two employees have already attained 58 years, and as per company rules, they can work until 65 years. We are still deducting PF and regularly depositing to EPF as usual. Kindly suggest the following:

(a) How much to be deducted from the employee, i.e., %
(b) Employers' contribution
(c) Distribution to deposit in various accounts, i.e., 8.33% and 3.67% etc.
(d) How to revert back the amount already deposited in EPS
(e) Can the employees are eligible for EPF pension

Thank you.

Hi, we are retaining one employee after attaining the age of 58. Presently, we are deducting his PF and ESI. Now, we are continuing his service. In this case, can we discontinue his PF and continue only ESI? Is it possible? If we consider him as a consultant, what benefits should we provide? Please help me.

I attained 58 years of age and am still continuing in service. I was employed on a CTC basis, and suddenly my EPS portion is not being contributed due to reaching 58 years of age, but the EPF part is being paid regularly. Now, the CTC is decreased as promised by the company. How can I receive my EPS portion, either in gross or in EPF?

Hi, Pension contributions stop after 58 years. However, the employer should remit the pension contribution (8.33%) to your PF account. Please check in your PF Passbook login to see whether the pension contribution has been added to your PF contributions.