Navigating PF Contributions for Employees Joining at 55 or 70: What Are the Rules?

Employee Joining at Age 55

1. If an employee joins at the age of 55 and has no earlier EPF account, does the employer need to contribute to the pension or 12% to the PF fund?

Employee with Withdrawn PF Fund

2. An employee has withdrawn the PF fund, maintaining only the pension fund. If this employee joins a new organization with a salary above 15,000, does the employer have to contribute to the pension fund or 12% to the PF fund only? Can the employee transfer their pension account, or should they apply for a scheme certificate?

Employee Joining at Age 70

3. If an employee joins at 70, should PF be deducted?

Contribution to PF and Pension Fund for Employees Aged 55 and Above

1. Since he has joined at the age of 55, you can contribute both to the PF and the Pension fund.

2. If the withdrawal of PF takes place after attaining 55 years of age, you can exclude him from PF and the pension fund. He cannot transfer the Pension fund if he is not given PF in the present establishment. In such cases, he can obtain a scheme certificate and use it when he attains 58 years of age for drawing a pension.

3. If this 70-year-old employee is not a PF pensioner or was not a member of PF earlier, then he should receive coverage in the present establishment. He should not be covered under the Pension fund, but the entire 12% contribution from the employer should go to the PF account.

Management Decision on PF Contribution After Age 58

That depends upon your management decision. After 58 years, if he is hired or continued in service, you can contribute to PF, but no amount shall be remitted to the Pension Fund account. That means the entire 12% of the employer's share is to be remitted to the PF without bifurcating 8.33% of the salary to the pension and the balance only to the PF.

If the management wants to exclude this person from PF, then he will have to withdraw the PF.