Rehiring Retired Employees: Is PF Deduction Still Required After Withdrawal?

I am interested in having a retired employee rejoin my establishment. Will PF deduction be applicable to the ex-employee? The employee has already applied for PF withdrawal after retirement.

Thank you.

Exclusion from PF Coverage for Reemployed Pensioners

If this employee is a PF pensioner or has withdrawn his PF accumulations, then he can be excluded from the coverage of PF when reemployed. A person who has applied for a pension and withdrawal of PF shall be considered a pensioner or one who has withdrawn the PF. The only thing to be noted is that the employee joining should be either a PF pensioner or should have withdrawn the PF accumulations upon attaining the age of retirement. In other words, if a government pensioner joins your establishment, he should be covered since he is not a PF pensioner.

Regards,
Madhu.T.K

Madhu,

In the above case, withdrawal of PF has been applied for but not yet completed. So, in such a case, what happens? Do they have to continue contributing to PF? Will the withdrawal process stop? Also, just wondering, if he is above 58, does the answer change?

No PF if he has retired after 55 years and withdrawn PF. He will be an excluded employee if his salary is above Rs. 15,000 per month.

Eligibility for EPF After Retirement

Government employees who retired on superannuation, i.e., at 58 years or 60 years, as the case may be, are not eligible for EPF. The criterion for EPF is 58 years (recently enhanced to 60 years). Whether they received a pension or not, or withdrew PF, they are not eligible for EPF.

Nowadays, organizations, other than exempted ones, are obligated to implement EPF. However, those below 58/60 years can certainly join the scheme. Independent establishments and contractors are not hiring individuals who are 58/60 years old.