Can We Stop PF Contributions for a 70-Year-Old Director with High Basic Pay?

masifhe

One of our directors, who is 70 years old, is drawing remuneration with a basic pay of more than 1 Lakh. We are still paying him PF but no EPS contribution. Is it possible to stop his PF contribution, or do we have to continue paying it even though his basic salary is high because he is still on the payroll and deductions were previously made?

saswatabanerjee

No, once a person has an existing PF account, you need to continue deducting their PF and depositing it into their account as long as they are employed and receiving a salary.

KK!HR

Prudence in Terminating PF Contributions

PF is a very remunerative investment option. Having made contributions until his 70 years of age, would it be prudent to terminate it suddenly? PF authorities may view this as non-compliance since you have been continuing to pay him a salary all along.

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