Hiring Seniors: Can We Offer Regular Salaries or Should They Be Consultants?

I would appreciate advice on whether it is possible to appoint an individual aged 60 and above on a regular salary basis, or if it would be necessary to appoint them as a retainer or consultant.

All three can be done as per your company's requirement. What is your concern? Regarding PF and ESI applicable to 60+ staff, you may find useful insights within Citerhr.

Good luck.
Regards,
Ukmitra

It's absolutely okay for you. There is no ban under any law of the land. I think you wanted an experienced person in your staffing, and he could be engaged on a regular basis with a suitable pay scale or consolidated remuneration as your company deems fit, considering his utility value for your firm. Even continuing his EPF is also okay, provided he had previously had one EPF account but not yet closed; the same account could be continued, but no pensionary benefits will accrue to this extended service. Similarly, ESI. This shouldn't be a problem as he might be fixed above Rs. 15,000 scale. To get over this, you may arrange for him a health insurance policy like mediclaim, which should take care of his health needs. If necessary, you have to amend your HR policy/rules suitably to accommodate such a requirement.

Regards.

Hi, I would suggest the Consultant option as less administrative work is involved. All the best.

Regards,

No need to worry. You can assign that employee (60+). In the EPF section, you will deduct 12% of the employee's share and deposit 12% of the employer's share, but in that case, you do not need to deposit 8.33% (pension share) out of the 12% (employer's share) for that employee. There is no problem in the ESIC section either.

Example Calculation:

If Employee Salary = 6500, then the calculation will be:
6500 x 12% = 780/- (employee share)
6500 x 12% = 780/- (employer share)
Total of 1560/- will be deposited in the Provident fund account. No pension scheme will be granted (i.e., 8.33% portion).

You can include 60+ persons in the regular payroll. Similarly, you can extend the ESI and PF benefits. There is nothing wrong in law.