Should We Keep Deducting PF for Employees Over 58? Seeking Your Guidance

Dear Seniors,

Some of our employees are over 58 years of age and are still working. Please advise whether we should continue deducting their PF contributions or not. Your guidance on this matter would be greatly appreciated.

Thank you.

Yes, it's mandatory to deduct PF even if you are a member over 58 years of age.

After 58 years of age, only pension fund contributions stop, and the full amount of the contribution goes to EPF. It is left to the management to extend this facility to an employee.

After 58 years of age, it is at the discretion of the employee and management whether they want to deduct PF or not. Even if a contribution is made to PF, it does not form part of the pension.

Could you please justify your above statement with the exact provision under the EPF & PF Act 1952?

Thank you.

Provident Fund as a Retirement Benefit

Provident Fund is a retirement benefit for employees. This benefit is applicable until the employee ceases to be employed by an organization. If an employee continues working after reaching retirement age, such as 58, 59, 60, etc., it still warrants that the fund be contributed to by the employer. The ILO has increased the retirement age, and some countries are already following suit.

Furthermore, the continuation of these contributions can be a motivating factor for other employees as well. It underscores the importance of honoring elders and addresses situations where employees consider changing jobs frequently.