Retirement Age and PF Deductions: What Happens After 58 Years Old?

After 58 years of age, can we deduct P.F.?

Hi, According to EPFO guidelines, an employee shall cease to be a member of the 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 until the date of his or her leaving the service, irrespective of the age of the member.

Adding to Lakshminarayanan's post, please note that the employer's contribution of the entire 12% shall be credited to the EPF account only.

Hello, Singh Bhim, can you confirm why you want to deduct PF after the retirement of an employee? I would not recommend deducting PF after 58 years because once an employee reaches the age of 58, they become eligible for pension benefits.

Retirement age in many organizations is now 60 years, so PF deduction is based on retirement and not only on 58 years of age.

EPF and EPS are exclusive benefits. Though an employee retires at 58 and is eligible for EPS, he can continue contributing to EPF. We need to understand that it is a retirement benefit, and the accrual will provide additional benefits to the employee. When it is beneficial to the employee and if he can contribute further, it can be continued until his retirement.

The query can be explained as per the following guidelines of EPFO:

1. Retirement After Age 58
If the employee retires after reaching the age of 58 and settles PF along with EPS, then the employee will be considered an excluded employee. There will be no need for PF or EPS contribution.

2. Retirement at Any Other Age After 58
If the employee retires after 58 at any other age, then EPS will discontinue, but the contribution to PF will continue along with EPS contribution to the PF account.

3. Closing the PF Account
Without the closing of the PF account, it will not be possible to stop contributions to the PF account irrespective of the employee's age.

S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions