Provident Fund Deduction For Employees Who Has Crossed Retirement Age.

Dear Sir
We have a situation where we are continuing our few employees beyond their age of retirement. We are very keen to continue our employee if they are willing to work for us and physically fit for employment. This would be continue of service without any break. We would be grateful to you if you could please advise us whether it is mandatory as per Indian law ( PF Law & Labour Law) to deduct Provident Fund after age of 60 for such employees.
Also if you could share link or attachment copy of law that would be very helpful.
Regards & thank
SACHIN GHAG

As per PF rules you need not deduct or pay PF to people who are above sixty. The logic is it is (PF) is meant for benefit as a saving after retirement and since the person is already sixty.
You may follow accordingly.

Dear Sir
May I request you to please advise where do I find the above mentioned PF rule ? I need to forward this to our HR in overseas market. I have few different opinions on our portal. Most of those are saying that PF is mandatory but not EPS (PENSION) after 60 years of age.
I tried to find out on PF website but had no luck. Is their any document that can explain it in detail.
Regards
SACHIN GHAG

Dear Mr. Sachin,
You can retain employee's above than retirement age and can deduct and contribute to PF only. There will be no contribution to Pension fund by Employer.
Regards,
Bhupinder Kumar

Dear sir,
In this situation, both the contribution shares (Employee and Employer) will be submitted in Employee Provident Fund Account Only.
there is no need to deposit pension fund in this case.
also, he can get the pension from the department as already he was the member of pension scheme and got attained the age of retirement.
Regards,

Up to the age of 60, PF is compulsory, after 60, the company can extend the benefit, but company too has to bear 12% of its share of PF. Only member contributing is not permitted. Both employee and employer must contribute equal share and in that case you can continue the PF as long as you want. As we too faced similar situation, we have clarified the matter as above from appropriate authorities.

Please for more information and updates. EPF Balance: How to Check Your PF Balance Status Online

Dear all,
If some one is working and drawing salary / wage after attaining the retirement age, he is required to contribute to EPF but both the shares of contributions will go to his EPF account and conrtibution to his EPS will be stopped / fringed at the age of 58 years. He can apply for monthly pension at the age of 58 years and EPF accumulations will be withdrawn after he actually retires.
P K Sharma

Dear Sachin,

Discontinuation of PF depends on the following factors-

1) If the employee is excluded employee. Now the question is who is an excluded employee. As per PF ACT, if the employee starts his/her carrier above the coverage limit salary which is today 15,000/- -Basic & DA per month is an excluded employee OR someone was member but settled his PF and again join above the coverage limit OR Retired after attaining the age of 55 years ( may be changed, pl check) and settled the PF.

2) In your case it is continuation of service without break being a PF member. In this case if the PF membership will not break, then EPF will be settled after attaining the age of 58 yrs and PF should continue and entire contribution of PF & EPF will be deposited to PF fund only.

3) It is always better in case of continuation after attaining the age of retirement, to retire formally & settlement of PF. Then reappointment with fresh or same terms and condition - much easy to tackle the situation.

Thanks & regards,

S K Bandyopadhyay

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