Dear Seniors,
We are a residential school. Please clarify if we need to deduct PF and ESI for our staff who cross the age of 58, but are still employed by us. We plan to give them their gratuity at 58 but continue to keep them as retired staff, paying only salary. Is it Ok as per PF Act and ESI Act??
Kindly give your understanding on the above.
Sanjive

From India, Coimbatore
Sir, in order to become an "employee" there is no age bar under provisions of ESI Act,1948.
From India, Noida
if your member cross 58 years & he withdraw his pf/fpf amount then after u keep them as a retired staff than pf deduction not mandatory as per act.
From India, Surat
atomz
19

You have to deduct the EPF and ESI of the retired employees. Both the acts applicable to wages paid to the employee. Only EPS will be stopped and the amount of EPS (Employee Pension Scheme) will be shifted to EPF after 58 years of age.
Stay Cool,
Atom

From India, Phagwara
ESI Scheme will be applicable if area underwhich your school is situated is notified otherwise not.
ESI authorities publish such things in local news papers or you can have notification related details from their office. Please do not go by wage or age only. If an employee has reached age of superannuation which is 58 Yrs, he is not eligible to benefits under PF Act.There are other options available ,which you can find out from the undersigned.
Regds,
RDS Yadav
Management Adviser and Trainer

From India, Delhi
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