Can We Start PF Deduction for a 57-Year-Old Employee Now? What About Past Compliance?

Dear Seniors,

I am working in a Pvt. Ltd. Company. I want your help on PF deduction. A senior person working in our company since August 2017 is 57 years old. We have not deducted his PF until this month, but now we want to start deducting it. Can I deduct his PF? If yes, are there any compliance issues regarding the past service period? Please help me.

Dear Friend,

If he is not an excluded employee in PF, then you have to deduct his PF from the Date of Joining (DOJ); otherwise, whenever your company is audited, the liability applies from his DOJ.

Upon reaching the age of 58, you have to stop contributing towards the pension and instead contribute his 8.33% (employer share) in the PF account.

Hi,

If your employer is covered under PF, PF deduction has to be compulsory from day one of employment. If you want to backdate it and pay, you can pay as arrear PF with penalties and interest charges based on the number of years of service. Or you can present it as an addition of a new employee. However, the employee will be the loser.