We rehire retired employees after all settlement of pf gratuity under contract of employment, is again pf applicable when salary is paid to those employees.
From India, Chennai
From India, Chennai
Hi
Retired employees : I hope you are referring to employees who attained the age of 58 and relieved.?
When you rehire them as Retainer Consultant with Retainer fee subject to TDS @ 10% no need for PF. They will not be considered as regular employees.
From India, Madras
942Retired employees : I hope you are referring to employees who attained the age of 58 and relieved.?
When you rehire them as Retainer Consultant with Retainer fee subject to TDS @ 10% no need for PF. They will not be considered as regular employees.
From India, Madras
It depends upon the nature of appointment. If the employee is expected to come to the office and remain in the office for regular office timings, if he is to apply for leave like any other employee is doing, if he is to follow the dress code, if any, of the company and other formalities and protocols for availing certain benefits he will have the status of employee whatever be the designation that you give. It may be noted that in Wockhardt Hospitals Ltd Vs Department of Income Tax the Doctors whose income from the hospital (employer) was subjected to deduction of tax at source u/s 194J was made deductible u/s 192 as salary on the finding that these doctors were employees who follow the HR protocols with regards to timing, leave rules etc. Many organisation rehire retired employees like professionals without having any professional capacity. A professional will not come to the office every day and in the same time the other employees come. They will not 'apply' for leave when they do not come to office due to any reason. You can not put a restrictive clause that the person should not engage himself in other activities of profits. All these make the status "employee" only. Therefore, if the person is expected to work like any other employee, offer him an employment rather than any retainership.
From India, Kannur
From India, Kannur
There is no age limit for PF membership as per EPF Act 1952. However, no contribution would go to EPS account after 58 and the entire PF contribution of the employee would go to the EPF corpus.
We had encountered a problem which is relevant here. Many employees had retired from service pending wage revision and their PF, gratuity & F&F were settled much before the wage revision came. After the wage revision, the retired employees were given salary revision with the PF contribution and the employer contribution shown distinctly in the pay slip issued for the purpose. Since the accounts were already closed the employer paid the amount directly to the employees. Such retired employees later agitated the matter that had their PF amounts been routed through the PF Account they would have got related Income Tax relief. The PF authorities ruled in favour of the retired employees and held that PF A/c of the employees could have been reopened. The appeal before the Appellate Tribunal did n't help the employer.
From India, Mumbai
We had encountered a problem which is relevant here. Many employees had retired from service pending wage revision and their PF, gratuity & F&F were settled much before the wage revision came. After the wage revision, the retired employees were given salary revision with the PF contribution and the employer contribution shown distinctly in the pay slip issued for the purpose. Since the accounts were already closed the employer paid the amount directly to the employees. Such retired employees later agitated the matter that had their PF amounts been routed through the PF Account they would have got related Income Tax relief. The PF authorities ruled in favour of the retired employees and held that PF A/c of the employees could have been reopened. The appeal before the Appellate Tribunal did n't help the employer.
From India, Mumbai
If the rehired retired employee was a member of EPFO and subsequently settled his PF and EPS if any, then the employee is excluded employee under PF & Misc. Act. No need to continue as member of EPFO. If it is otherwise ( Not a member of EPFO etc.) , he will continue to to be EPFO membership as nicely explained by Madhu TK and the conditions of employment is like a regular employee. Only if the age is more than 58, the entire contribution will be deposited to PF only and no contribution to EPS.
S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Yes, PF will be applicable for rehired retired employees even if they have already received PF and gratuity settlements. The employer must continue to contribute to the employee's PF account during the period of their employment, as long as they are eligible for PF contributions.
However, if the employee has already withdrawn their PF balance or transferred it to a new account, then the new contributions will go towards the creation of a new account. In such cases, the employer must provide the employee with a new PF account number.
It is important to note that the rules regarding PF contributions and eligibility may vary depending on the specific circumstances of the employee and the organization. Therefore, it is advisable to consult with a qualified financial advisor or HR expert for guidance on how to handle PF contributions for rehired retired employees.
I hope this information helps. Let me know if you have any further questions.
From India
However, if the employee has already withdrawn their PF balance or transferred it to a new account, then the new contributions will go towards the creation of a new account. In such cases, the employer must provide the employee with a new PF account number.
It is important to note that the rules regarding PF contributions and eligibility may vary depending on the specific circumstances of the employee and the organization. Therefore, it is advisable to consult with a qualified financial advisor or HR expert for guidance on how to handle PF contributions for rehired retired employees.
I hope this information helps. Let me know if you have any further questions.
From India
PF will not be eligible if the employee is an excluded employee under PF & Misc. Act. As per definition of Excluded employee following are the excluded employees:-
1.0 At the time of 1st time employment the PF gross is more than 15,000/- per month as on date.
2.0 Earlier member of PF but subsequently left the job and close the PF account and again joining with higher PF Gross is also excluded employees.
3.0 Was a member of EPFO and after attaining the age of 58 retired and settled PF & EPS and again joining with PF Coverage salary is also excluded employee.
Please go through the definition under the Act and satisfy.
If the employer is interested to pay PF even after excluded employee, it is the discretion of the employer.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
1.0 At the time of 1st time employment the PF gross is more than 15,000/- per month as on date.
2.0 Earlier member of PF but subsequently left the job and close the PF account and again joining with higher PF Gross is also excluded employees.
3.0 Was a member of EPFO and after attaining the age of 58 retired and settled PF & EPS and again joining with PF Coverage salary is also excluded employee.
Please go through the definition under the Act and satisfy.
If the employer is interested to pay PF even after excluded employee, it is the discretion of the employer.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Dear Lakshmi Narayanan, After age of 60 PF will be not applicable to an contract employee even his basic cell is less then Rs.15000/- Regards, Sanjay Tiwari Dy. GM(HRD & IR) M: 9727704102
From India, New Delhi
From India, New Delhi
Dear S Tiwari, age is not an employee for coverage but an employee who joins your establishment with a salary of less than Rs 15000 will have to be covered if he is not an excluded employee. An excluded employee is one who has withdrawn his PF accumulations and is in receipt of Pension from Employees Provident Fund Organisation. Even a person who is getting government pension should be covered by EPF if his salary is within Rs 15000. the same treatment applies to a contract employee also.
From India, Kannur
From India, Kannur
1. If an employee attended 58 years of age the deposit in pension fund shall be continued?
Ans: No, after 58 years the entire fund will be deposited in PF Accounts, not in Family Pension fund.
2. If any employee is engaged in any establishment after his superannuation age of 60 years,
whether EPF deposit is mandatory?
Ans: EPF deposit is not mandatory after 60 years of service.
From India, New Delhi
Ans: No, after 58 years the entire fund will be deposited in PF Accounts, not in Family Pension fund.
2. If any employee is engaged in any establishment after his superannuation age of 60 years,
whether EPF deposit is mandatory?
Ans: EPF deposit is not mandatory after 60 years of service.
From India, New Delhi
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