Age 60 - Is there any rule to continue to remit the EPF contribution for him by the employer? Is it Mandatory Or Optional?

An employee was working in a company; he has attained 60 years, and he is continuing his job. In this situation, is there any rule to continue remitting the EPF contribution for him by the employer? Is it Mandatory Or Optional?

If yes, up to which age should the management pay?

Dear Colleague,

EPF Pension which is technically known as Employees' Pension Scheme (EPS), is a social security scheme provided by the Employees' Provident Fund Organization (EPFO). The scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years.

According to EPFO guidelines, an employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the scheme, whichever is earlier.

However, in cases of continuation of service, the employer needs to pay the Employees’ Provident Fund Contribution till the date of leaving the service by the employee, irrespective of the age of the member. In this case the full contribution of 12% has to go to PF fund.

The respective PF Enforcement Officer may be contacted for more clarity if needed.

Read more at:
https://economictimes.indiatimes.com...campaign=cppst

Take Care,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu

Dr. P. Sivakumar

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PF contribution can be stopped if the employee is an excluded employee. Usually, if an employee starts their first employment at any age and the PF Gross (Basic, DA, and other regular allowances as per the Apex court's latest verdict) is above ₹15,000 per month, they are considered an excluded employee. An employee who joins an organization, is covered under EPFO, subsequently leaves the organization, settles all dues with EPFO, and then joins another organization where the PF Gross is more than ₹15,000 per month is also considered an excluded employee. Additionally, an employee who works with an organization as an EPFO member, retires after attaining the age of 58 or 60 years, settles all dues with EPFO, and then joins another organization or the same organization, even with a PF Gross of ₹15,000 or less, is considered an excluded employee.

If an employee continues their existing job without settling EPFO even after reaching the age of 58, then the entire contribution will be deposited to the PF Fund only, with no contribution to EPS.

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