Regarding a new employee above 58 years joining a company, he is exempted from EPS. But is it mandatory to put him under EPF ? Can the management refuse it even if he requests ? Is it necessary to ascertain whether he was in EPF or not in his previous employment, and whether he is receiving pension?
What about the employee who after completing 10 years in EPF has retired from EPF and got all his dues, and closed his account at 48th year. He wants to join a company now at his 51st year.Is it mandatory to put him under EPF once again ? Can the management refuse his request ?
Can we employ these 58+ years persons as part time employees with minimum work of around 6 hours a day. They also do not want any deduction from their salary. Can we exempt them from EPF and ESI ? What is the procedure to be followed regarding attendance and salary registers and pay slips ? Is there any difference between skilled and unskilled workers in this 58+ category when they want to join for part time job?
Please bear with me for asking too many questions. But I need answers to enable me to be careful in such matters.
From India, Madras
What about the employee who after completing 10 years in EPF has retired from EPF and got all his dues, and closed his account at 48th year. He wants to join a company now at his 51st year.Is it mandatory to put him under EPF once again ? Can the management refuse his request ?
Can we employ these 58+ years persons as part time employees with minimum work of around 6 hours a day. They also do not want any deduction from their salary. Can we exempt them from EPF and ESI ? What is the procedure to be followed regarding attendance and salary registers and pay slips ? Is there any difference between skilled and unskilled workers in this 58+ category when they want to join for part time job?
Please bear with me for asking too many questions. But I need answers to enable me to be careful in such matters.
From India, Madras
If you employ some one over 58 years of age, you should pay EPF to him provided he is not a PF pensioner or is not one who has withdrawn the PF accumulations on his attaining 55 years of age. Now the responsibility is on the employer to see if they should be enrolled not not. It is for this purpose that we are making form 11 in which the new joinee will declare that he was a member of PF earlier or not a member earlier or even was a member but has withdrawn the PF.
A member who had withdrawn the PF at 48 years of age will not become an excluded member. Therefore, if such an employee joins you, you should give him PF.
Time of engagement and the wages prorata that you give will not make any difference in their registration. If they are not PF pensioner or were not a member of PF earlier, and are paid not more than Rs 15000, you should give them PF and also ESI. It is true that you need not contribute towrds Pension Fund but the entire contribution of 12 % should go to their Provident Fund only. The only way to get them out of ESI and PF is to increase their Salary. Now for ESI it is going to be Rs 21000! You will be no where if you keep on increasing the salary with every increase in the salary ceiling under these Acts just to escape from the liability. But at the same time, just see the benefits the employee gets out of these schemes. Under ESI, your contribution of just 4.75% will make you free from obligations once an employee meets with an accident. When you are relieved from the liabilities under the Workmen's Compensation Act due to ESI, you are gaining more than what you spent for the time being. Similarly, the EDLI scheme attached to the Provident fund is a great relief to the dependents in such occasions.
Better make the employees aware of the schemes and introduce it to all who work for you.
Madhu.T.K
From India, Kannur
4239A member who had withdrawn the PF at 48 years of age will not become an excluded member. Therefore, if such an employee joins you, you should give him PF.
Time of engagement and the wages prorata that you give will not make any difference in their registration. If they are not PF pensioner or were not a member of PF earlier, and are paid not more than Rs 15000, you should give them PF and also ESI. It is true that you need not contribute towrds Pension Fund but the entire contribution of 12 % should go to their Provident Fund only. The only way to get them out of ESI and PF is to increase their Salary. Now for ESI it is going to be Rs 21000! You will be no where if you keep on increasing the salary with every increase in the salary ceiling under these Acts just to escape from the liability. But at the same time, just see the benefits the employee gets out of these schemes. Under ESI, your contribution of just 4.75% will make you free from obligations once an employee meets with an accident. When you are relieved from the liabilities under the Workmen's Compensation Act due to ESI, you are gaining more than what you spent for the time being. Similarly, the EDLI scheme attached to the Provident fund is a great relief to the dependents in such occasions.
Better make the employees aware of the schemes and introduce it to all who work for you.
Madhu.T.K
From India, Kannur
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