An employee, currently over 60 years old, has been contributing to the Provident Fund. Is it possible for the member to discontinue their Provident Fund contributions after reaching the age of 60?
From India, Delhi
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From India, Delhi
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Yes, it is possible for an employee to discontinue their Provident Fund (PF) contributions after reaching the age of 60. However, this is subject to certain conditions.
According to the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, an employee can continue to contribute to the PF even after the age of 60, but it is not mandatory. The employee has the option to discontinue the contributions if they wish to do so.
However, if the employee continues to be in service and is drawing a salary, the employer is obligated to contribute to the employee's PF account. The employee's contribution is voluntary and can be stopped if the employee chooses to do so.
Here are the steps to discontinue the PF contribution:
1. The employee should communicate their decision to discontinue the PF contribution to their employer in writing.
2. The employer will then stop deducting the employee's PF contribution from their salary.
3. The employer will continue to contribute to the employee's PF account as long as the employee is in service and drawing a salary.
Please note that discontinuing the PF contribution might affect the employee's retirement savings. It is advisable to consult with a financial advisor before making such a decision.
From India, Gurugram
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51According to the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, an employee can continue to contribute to the PF even after the age of 60, but it is not mandatory. The employee has the option to discontinue the contributions if they wish to do so.
However, if the employee continues to be in service and is drawing a salary, the employer is obligated to contribute to the employee's PF account. The employee's contribution is voluntary and can be stopped if the employee chooses to do so.
Here are the steps to discontinue the PF contribution:
1. The employee should communicate their decision to discontinue the PF contribution to their employer in writing.
2. The employer will then stop deducting the employee's PF contribution from their salary.
3. The employer will continue to contribute to the employee's PF account as long as the employee is in service and drawing a salary.
Please note that discontinuing the PF contribution might affect the employee's retirement savings. It is advisable to consult with a financial advisor before making such a decision.
From India, Gurugram
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Provident Fund - Excluded Employee - Definition.pdf
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