Dear sir i want to know about age limit for deduction of epf as per law. & if member join establishment after 58 than epf deduction compulsory,, ans welcome with law related thanks
From India, Surat
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80From India, Surat
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EPF Contribution Age Limit Clarification
With reference to your query regarding the age for contributing to EPF, it is submitted that there is no such limitation for contributing to the provident fund. In standard business practice, an employee typically retires from the service of the company/firm/concern at the age of 58 years. There is a provision of an upper age limit in the Employees' Pension Scheme, which is 58 years for a member.
If a member is continuously contributing towards EPF, either in the current establishment or in a previous one, they are required to be a member of the EPF scheme until the last day of termination of services, retirement, superannuation, etc. This provision is stipulated in the EPF and MP Act, 1952.
Regards,
R B Yadav
Advocate
From India, Gurugram
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With reference to your query regarding the age for contributing to EPF, it is submitted that there is no such limitation for contributing to the provident fund. In standard business practice, an employee typically retires from the service of the company/firm/concern at the age of 58 years. There is a provision of an upper age limit in the Employees' Pension Scheme, which is 58 years for a member.
If a member is continuously contributing towards EPF, either in the current establishment or in a previous one, they are required to be a member of the EPF scheme until the last day of termination of services, retirement, superannuation, etc. This provision is stipulated in the EPF and MP Act, 1952.
Regards,
R B Yadav
Advocate
From India, Gurugram
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I agree with mr yadav but to add to his statement, the age limit will of retirement will not apply to epf if He or she was previously a govt employee. Requesting mr yadav to correct me if I am wrong
From India, Calcutta
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From India, Calcutta
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There is no age limit for EPF deduction, but for the pension fund, the age limit is 58. So, if you are deducting PF from any employee who is over 58 years old, deposit his/her pension share in the Employer's PF Contribution.
Regards,
Vikram Trivedi
From India, Mumbai
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Regards,
Vikram Trivedi
From India, Mumbai
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The question is whether a company should deduct EPF from an employee who joins after attaining the age of 58 years. It is a general opinion that the EPF Act does not prescribe an age limit, but at the same time, the EPS has a limit of 58 years. Since the EPF Contribution prescribes for a 12% member's contribution and an equal amount of contribution by the employer, the Act further prescribes that out of the 12% management contribution, a percentage component towards EPS shall be remitted to the Pension Fund. Hence, it follows that it is not mandatory to deduct EPF in respect of a person who joins the services after the age of 58 years.
With good wishes,
C.M. Lal Srivastava
From India, New Delhi
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With good wishes,
C.M. Lal Srivastava
From India, New Delhi
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Understanding EPF Membership and Age Limit
One should not confuse the prescribed 58-year pensionable age under EPS. Irrespective of attaining the age of superannuation under EPS upon completion of 58 years, one does not cease to be a member of EPF until they cease to be in employment. As long as employment continues, coverage under EPF will undoubtedly continue up to the last day of employment. There is no doubt in this matter.
Regards,
imrvind
From India, Hyderabad
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One should not confuse the prescribed 58-year pensionable age under EPS. Irrespective of attaining the age of superannuation under EPS upon completion of 58 years, one does not cease to be a member of EPF until they cease to be in employment. As long as employment continues, coverage under EPF will undoubtedly continue up to the last day of employment. There is no doubt in this matter.
Regards,
imrvind
From India, Hyderabad
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No need to worry about this deduction part. If you upload the wage details of the employee to the E-Return Tool, and if the age of an employee is above 58 years, then the software automatically calculates the employer contribution of 12% to the EPF Account only. So both the shares of 12% each will go to the EPF account only.
Regards,
RK
From India, Mumbai
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Regards,
RK
From India, Mumbai
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It is mandatory to deduct EPF for a person who joins the services after the age of 58 years if the member does not withdraw the EPF amount from their previous service and the company does not submit the declaration (Form 11) to the EPF office.
Regards.
From India, Surat
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Regards.
From India, Surat
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It is mandatory to deduct EPF in respect of a person who joins the services after the age of 58 years if the member does not withdraw the EPF amount from their previous service and the company does not submit a declaration (Form 11) to the EPF office.
From India, Surat
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From India, Surat
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Post-Retirement Employment and PF Benefits
What happens if an employee, after superannuation, withdraws his entire PF balance and then gets a post-retirement job? Can the employer, if agreeable, allow him to enjoy the PF benefit? If not, is the employee still entitled to enjoy this benefit?
Regards,
CS A.K. Maitra
From India, Delhi
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What happens if an employee, after superannuation, withdraws his entire PF balance and then gets a post-retirement job? Can the employer, if agreeable, allow him to enjoy the PF benefit? If not, is the employee still entitled to enjoy this benefit?
Regards,
CS A.K. Maitra
From India, Delhi
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EPF Withdrawal and Employer Agreement
If an employee withdraws the EPF amount and the employer does not agree, then the employee will not receive EPF benefits if the employee's salary is above ₹6,500. If the salary is less than ₹6,500, then the employee is eligible for EPF as per the act. Voluntary deduction of EPF is allowed in all situations.
From India, Surat
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If an employee withdraws the EPF amount and the employer does not agree, then the employee will not receive EPF benefits if the employee's salary is above ₹6,500. If the salary is less than ₹6,500, then the employee is eligible for EPF as per the act. Voluntary deduction of EPF is allowed in all situations.
From India, Surat
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In my view, under the Act, there is no compulsion for the employer to deduct and deposit the PF contribution after the age of 58 years for newcomers or existing members unless both the employer and the employee consent to deduct PF or continue PF deductions.
In any case, there is no provision to deduct and deposit under EPS after the age of 58 years.
Regards,
Chandok AK
RPFC (Retd.)
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From India, Chandigarh
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In any case, there is no provision to deduct and deposit under EPS after the age of 58 years.
Regards,
Chandok AK
RPFC (Retd.)
[Link no longer exists - removed]
From India, Chandigarh
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Dear Mr. Ashok Chandhok,
There has been a lot of discussion on the topic of whether it is mandatory for the employer to deduct EPF for an employee who joins an organization after the age of 58 years. Most of the members, including some advocates, have opined that it is mandatory to deduct EPF as no age has been prescribed under the EPF & MP Act, 1952. In this case, no contribution will go to the EPS Account. One of the members has suggested that when you go online to remit the monthly EPF subscription and fill up the age as 59 or any higher age, the system will automatically calculate the EPF subscription and will not show any contribution to EPS.
Would it be possible for you to review this majority opinion?
Secondly, sir, there is another question regarding whether EPF deduction will be applicable if a person is employed as a Consultant on a consolidated salary exceeding the pay limit prescribed in the EPF Act & Scheme. In this case, would the age limit apply or not?
I would be thankful for your valuable expert opinion.
With due regards and best wishes.
Regards,
C.M. Lal Srivastava
From India, New Delhi
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There has been a lot of discussion on the topic of whether it is mandatory for the employer to deduct EPF for an employee who joins an organization after the age of 58 years. Most of the members, including some advocates, have opined that it is mandatory to deduct EPF as no age has been prescribed under the EPF & MP Act, 1952. In this case, no contribution will go to the EPS Account. One of the members has suggested that when you go online to remit the monthly EPF subscription and fill up the age as 59 or any higher age, the system will automatically calculate the EPF subscription and will not show any contribution to EPS.
Would it be possible for you to review this majority opinion?
Secondly, sir, there is another question regarding whether EPF deduction will be applicable if a person is employed as a Consultant on a consolidated salary exceeding the pay limit prescribed in the EPF Act & Scheme. In this case, would the age limit apply or not?
I would be thankful for your valuable expert opinion.
With due regards and best wishes.
Regards,
C.M. Lal Srivastava
From India, New Delhi
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Dear Srivastava ji, You have raised a very genuine, solid, and legal issue that has not been defined specifically. However, we need to go through the definitions of Employee, Excluded Employee, Contribution, and Para 6 of the EPS 95, etc. A reading of which, in my opinion, shows that though no age limit has been defined under the EPF Scheme, contributions are mandatorily required to be deducted and deposited up to the age of 58 years or until attaining the age of 55 years if a member opts, or until superannuation as per establishment rules. Thus, I am of the considered view that there is no compulsion for the employer to deduct and deposit EPF Contribution after the age of 58 years unless there is consent from both parties.
Regarding online calculation, I believe there is a provision for such employees who wish to remain members of the EPF Scheme even after attaining the age of 58 years, provided the employer has also consented.
I would be highly obliged if anyone could provide a circular or judgment where contributions have been declared as compulsorily payable. On the other hand, we can find decisions where it has been held that after the age of 58 years/superannuation, contributions are not required.
Regards, Chandok AK
From India, Chandigarh
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Regarding online calculation, I believe there is a provision for such employees who wish to remain members of the EPF Scheme even after attaining the age of 58 years, provided the employer has also consented.
I would be highly obliged if anyone could provide a circular or judgment where contributions have been declared as compulsorily payable. On the other hand, we can find decisions where it has been held that after the age of 58 years/superannuation, contributions are not required.
Regards, Chandok AK
From India, Chandigarh
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Greetings and many thanks for your opinion. However, I had requested to seek an opinion not on superannuated persons but in respect of a person who is not superannuated and employed as a Consultant. Now, in this case, whether he would be covered under EPF & MP Act or not.
EPF Deduction for Higher Salaries
My second question is when a person is employed at a salary higher than the pay limit prescribed in the EPF Act, then whether in such a case is it mandatory to apply EPF deduction or not. If EPF deduction is to be applied, then on what amount of salary will it apply. Whether there is any government decision on this aspect or not.
Looking forward to a good response.
Regards,
Srivastava
From India, New Delhi
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EPF Deduction for Higher Salaries
My second question is when a person is employed at a salary higher than the pay limit prescribed in the EPF Act, then whether in such a case is it mandatory to apply EPF deduction or not. If EPF deduction is to be applied, then on what amount of salary will it apply. Whether there is any government decision on this aspect or not.
Looking forward to a good response.
Regards,
Srivastava
From India, New Delhi
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Epf SC-judgment-eps exceeding cealing limit.pdf