Senior Citizen Under Employment

Pls guide me what are the consequences if we hire any senior citizen under company rolls. Also if the answer is no what are the procedures to do so.
Regards
Prachi

Dear Prachi,
You are allowed to hire any senior citizen (above 58 yrs), it can be hire two ways (on payroll / off payroll.)
1) On payroll :- if you wish to hire such person on payroll, then you can hire as normal employee with all social security benefits (pf,ESIC, bonus, grauity etc.) but, no need to pay pension contribution, same amount you can putted in PF account.
2) Off roll :- to avoid any liability toward the social secuirty benefits, you may take him on contract by making service contract & can be paid his fees by ask him to raise the invoice / bill on monthly basis.

Dear Tushar,
As suggested by you the person can be taken on retainer ship. agreement. But in this case TDS @ 10% will be applicable.
You can take such employees on Pay Rool. No PF term will be applicable, as they are exempted employee. Only deduction will be Provident Fund & Income Tax as per case
Ramakant

Dear Prachidesai,
There is no upper age limit to employ a person, legally there also no bar. However as explained by others he is not eligible to continue his EPS Pension a/c. So it's open to you either to take him on regular pay roll or appoint him as Contract employee or as a Consultant with Terms & conditions to suit your policies. Depending on this you may decide to pay him thro' monthly salary bill or by crediting directly to his bank a/c as per your convenience. TDS would depend on his status of employment.

Dear Mr.Ramakant,

You have mentioned that only deduction will be Provident Fund & Income Tax as per case.

I think you have earlier stated that PF is not applicable.

This depends on the willingness of the management. Instead of EPF the Retired incumbent by whatever designation called may be allowed PF benefit for crediting the PF amount recovered from the employee along with the employer's contribution in PUBLIC PROVIDENT FUND -- PPF -- with Banks or Post Offices. .

Of course he may not be eligible for the benefits of EPF and ESI.

Instead he can be given free mediclaim policies or medical reimbursements both during service and thereafter, as a good employer would generally like his present and ex employees to have a peaceful life.

If he is not paid properly it amounts to exploitation of seniors. In fact seniors citizens will contribute more than many other persons, though not all. They will deliver results with good and valuable suggestions/ advises Private firms owned by Jains and Chettiar communities prefer mostly senior people for their continued service, knowledge, experience and honesty. CTC in respect of Senior citizens should also be calculated and they be placed on par with other employees, of course, based on their ability, devotion duty etc., with out considering the age which is only a number. .

Dear Ironbalu,
Sorry there is typing error. Please read Professional Tax & Income Tax as case.
SORRY MR.IRONBALU.
I AM OF AGE 57 (SENIOR CITIZEN) WORKING IN BPO AS ACCOUNTS MANAGER
Ramakant

Dear Ramakant,
Since the age is stated to be 57, it is likely you would have worked elsewhere enjoying the benefits of PF ESI etc. If you have not drawn the terminal benefits from earlier employment you can continue the same PF No. by furnishing to the new employer and filling up the relevant forms for transfer/adjustment.
If you had withdrawn all the benefits it is probable that you may be admitted as a fresh member but you may not be entitled to avail all the benefits of EPF, ESI etc., as your total service as a new member will be only 1 year, that is you may not be entitled for EPF facilities after 58 years.
If you need any further details, I suggest you may contact an advocate dealing with PF/ESI cases for any legal decisions which may be favourable/helpful to you.