Is It Mandatory to Pay EDLI Admin Charges for Employees Retained After Retirement Age?

We have retained some employees in service after their 58 years in our company. Retirement age is fixed at 58 years, but we retained them as they are still efficient and want to work. My question is, is it compulsory by law to remit EDLI admin charges from management? Waiting for your suggestions.

Dear Member,

You have not mentioned whether employees who have crossed the retirement age of 58 years still continue to be members of EPF. All EPF members continue to be EDLI members irrespective of age. EDLI wage ceiling: Rs15,000/-

A/C # 21 Portal will calculate based on EDLI wages @ 0.50%

Hi,

It is not compulsory, but if your management wishes, you may deduct his PF contribution, and full employer's contribution has to be done Employers PF share. For example, if the Basic salary is Rs. 15,000/-.

Before retirement:
Employers EPS contribution is Rs. 1,249/-, EPF contribution is Rs. 551/-, totaling Rs. 1,800/-.

After retirement:
Employers EPS contribution is Rs. 0/-, EPF contribution is Rs. 1,800/-, totaling Rs. 1,800/-.

Regards, Mubarack HR - Head Seapol Group

EDLI Contribution for Employees Over 58 Years

Your query is related to EDLI for employees whose ages are more than 58 years. The answer is yes, you have to deposit the EDLI contribution for such an employee who has crossed 58 years of age and continues as an employee.

EDLI Admin Charge (A/c 22)

Since May 2017, the EDLI Admin Charge has been discontinued per EPFO Notification, which states that "for the time being, no admin charge is to be paid." However, in practical situations, I see a lot of companies still depositing the EDLI Admin Charge primarily due to two reasons:

1) Due to ignorance
2) Reputed companies who want to be on the right side of the law and do not want to take any chances with this "for the time being" clause

I hope this clarifies your doubt.

Thanks.