Dear seniors, Can we continue any employee whose age is above 60 , if yes then what will be salary break up of that employee including pf, esic contribution..... Plz guide. Regards, Mamta Agrawal
From India, Mumbai
2From India, Mumbai
Dear Mamta,
If an employee completes his or her 60 years then he or she can't be on payroll,means there would not be any deduction like PF & ESI.They can be work in the company on contract basis only & for the contractual employees,there is no any deduction like PF & ESI.
Regards,
Shweta Singh
From India, Hyderabad
If an employee completes his or her 60 years then he or she can't be on payroll,means there would not be any deduction like PF & ESI.They can be work in the company on contract basis only & for the contractual employees,there is no any deduction like PF & ESI.
Regards,
Shweta Singh
From India, Hyderabad
Employing person of 60 years of age on rolls purely depends on the company policy. There is nothing wrong in putting them under the rolls of the company if the Standing Orders or such other policy does not prohibit such engagement.
If you employ a person over the age of superannuation fixed by the company, it is mandatory that he should be given ESI coverage. Even if you put him under a contractor's pay roll, he should be given ESI. For ESI there is no age bar.
With regard to coverage of EPF, if he has been in receipt of PF pension or he has withdrawn his PF accumulations on his attaining the age of 58, he can be excluded. On the other hand, if he has not been a PF member or he has been a Government pensioner and not a pensioner of EPF, then he should be given PF coverage. Only thing is that the employer's share of 8.33% usually remitted in Pension fund need not be done but instead, the entire 12% of employer's share should be credited to his provident fund along with his own share of 12%.
The case above will not be different even if he is under the rolls of an outsourced contractor.
Regards,
Madhu.T.K
From India, Kannur
If you employ a person over the age of superannuation fixed by the company, it is mandatory that he should be given ESI coverage. Even if you put him under a contractor's pay roll, he should be given ESI. For ESI there is no age bar.
With regard to coverage of EPF, if he has been in receipt of PF pension or he has withdrawn his PF accumulations on his attaining the age of 58, he can be excluded. On the other hand, if he has not been a PF member or he has been a Government pensioner and not a pensioner of EPF, then he should be given PF coverage. Only thing is that the employer's share of 8.33% usually remitted in Pension fund need not be done but instead, the entire 12% of employer's share should be credited to his provident fund along with his own share of 12%.
The case above will not be different even if he is under the rolls of an outsourced contractor.
Regards,
Madhu.T.K
From India, Kannur
Dear Sir
Thanks for your valuable authoritative inputs.
Times are changing, and it is quite common to find seniors being hired in more and more companies and in several business sectors to exploit the rich pool of talent coupled with experience.
I am sure your inputs would be helpful for the HR fraternity at large.
warm regards.
From India, Delhi
Thanks for your valuable authoritative inputs.
Times are changing, and it is quite common to find seniors being hired in more and more companies and in several business sectors to exploit the rich pool of talent coupled with experience.
I am sure your inputs would be helpful for the HR fraternity at large.
warm regards.
From India, Delhi
Mr. Madhu,
Thanks for your inputs.
I have a query, there is an employee in my company working for the past 14 years.
He is 65 yrs old now.
Till now , there was no PF , ESIC in my company , we are just initiating the same, so what happens to this old employee ?
Is retirement mandatory ?
Are we going to face any legal problems for employing people who are well above the retirement age ?
From India, Mumbai
Thanks for your inputs.
I have a query, there is an employee in my company working for the past 14 years.
He is 65 yrs old now.
Till now , there was no PF , ESIC in my company , we are just initiating the same, so what happens to this old employee ?
Is retirement mandatory ?
Are we going to face any legal problems for employing people who are well above the retirement age ?
From India, Mumbai
Dear Mamata,
what Mr. Madhu T.K. has presented is absolutely correct and valuable, follow the same becoz there is no age barred under the provisions of ESI Act. So far EPF is concerned enrolled him as it is very good in social point of view, if not ex pension benefiter.
Regards,
KIRAN KALE
From India, Kolhapur
what Mr. Madhu T.K. has presented is absolutely correct and valuable, follow the same becoz there is no age barred under the provisions of ESI Act. So far EPF is concerned enrolled him as it is very good in social point of view, if not ex pension benefiter.
Regards,
KIRAN KALE
From India, Kolhapur
If you have an existing employee aged 65, you should also bring him under ESI and EPF coverage when your establishment gets into ESI and EPF. As stated by me earlier, for the employee of 65 years of age, the establishment's contribution towards Pension Fund may be diverted to his Provident Fund.
So long as he is fit to do the work assigned there is no legal hurdle to employ an aged person. But avoid engaging such persons in hazardous occupations and work involving hectic labour.
Regards,
Madhu.T.K
From India, Kannur
So long as he is fit to do the work assigned there is no legal hurdle to employ an aged person. But avoid engaging such persons in hazardous occupations and work involving hectic labour.
Regards,
Madhu.T.K
From India, Kannur
Hi there,
I have a thought I would like to share with you guys for employees who have hit their retirement age and they are an asset to the company i.e. still required to work and they are in good health you can do the following:
• Process their papers as they are going on retirement and pay them all their dues as per the rules and regulations
• Re-employ the staff on annual contractual basis which means he is no longer subjected to pay any pension contribution and his contract is being renewed annually
• The employee mandatory has to go medical evaluation to renewal of contract to prove he is fit to work.
• Make sure that the employee has staff who he would transfer his knowledge to just in case when its time for them to leave for good the company wont suffer
• Make sure you add this process in your company policies to avoid any problems with your auditors you cannot afford to have gaps in your policy.
Regards
From Oman, Muscat
I have a thought I would like to share with you guys for employees who have hit their retirement age and they are an asset to the company i.e. still required to work and they are in good health you can do the following:
• Process their papers as they are going on retirement and pay them all their dues as per the rules and regulations
• Re-employ the staff on annual contractual basis which means he is no longer subjected to pay any pension contribution and his contract is being renewed annually
• The employee mandatory has to go medical evaluation to renewal of contract to prove he is fit to work.
• Make sure that the employee has staff who he would transfer his knowledge to just in case when its time for them to leave for good the company wont suffer
• Make sure you add this process in your company policies to avoid any problems with your auditors you cannot afford to have gaps in your policy.
Regards
From Oman, Muscat
dear,
in the both acts age has no bar to become a member means that if the workers cross the age 58 in p.f. he will be a member and both the shares will be deposit in p.f. means 12+12 instead of 12+3.67 and 8.33
under esi the deduction will be same as other persons there is no age limit
thanks
kkadvocate
From India, New Delhi
in the both acts age has no bar to become a member means that if the workers cross the age 58 in p.f. he will be a member and both the shares will be deposit in p.f. means 12+12 instead of 12+3.67 and 8.33
under esi the deduction will be same as other persons there is no age limit
thanks
kkadvocate
From India, New Delhi
dear
the pension fund means that amount onwhich the deptt did not give interest and provided pension after the services of 10 cont. years and after the age of 58(cont.8.335)
provident fund menas 12% of worker and 3.67% of emloyer on which deptt provide intt. now 9.5%
thnaks
kk advocate
From India, New Delhi
the pension fund means that amount onwhich the deptt did not give interest and provided pension after the services of 10 cont. years and after the age of 58(cont.8.335)
provident fund menas 12% of worker and 3.67% of emloyer on which deptt provide intt. now 9.5%
thnaks
kk advocate
From India, New Delhi
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