There is no bar of engaging the employees over and above age of 58 years. Certainly their experience is helpful to the management at all times. They will be generally engaged on contract basis/temporarily. Removable from service at any time.
Regarding Dos and Don'ts:-
You can deduct PF contributions and to pay in No.1 EPF a/c only. It is only option to the management but not compulsory.
You can deduct ESI on par with others, if his salary is below Rs.15000/-.
Leaves, Personal Insurance if any benefits to be continued or not as per the policy of management.
From India, Hyderabad
107Regarding Dos and Don'ts:-
You can deduct PF contributions and to pay in No.1 EPF a/c only. It is only option to the management but not compulsory.
You can deduct ESI on par with others, if his salary is below Rs.15000/-.
Leaves, Personal Insurance if any benefits to be continued or not as per the policy of management.
From India, Hyderabad
Dear Radha,
Normally talented executives don't want to stick to their old positions. My belief is, if he is a talented person and wants to cling to that position even after superannuation, he can only be lacking in self confidence that he cannot survive after retirement or cannot establish himself/herself in a more ucrative position at his own. That way, he cannot be treated as a talented person.
About concern of the management, I think Shri Dinesh Divekar has very well elaborated on that point, or otherwise, possibly, some boss can be understood to be interested more on keeping his touts and sycophants around him, rather than a talented person.
From India, Delhi
Normally talented executives don't want to stick to their old positions. My belief is, if he is a talented person and wants to cling to that position even after superannuation, he can only be lacking in self confidence that he cannot survive after retirement or cannot establish himself/herself in a more ucrative position at his own. That way, he cannot be treated as a talented person.
About concern of the management, I think Shri Dinesh Divekar has very well elaborated on that point, or otherwise, possibly, some boss can be understood to be interested more on keeping his touts and sycophants around him, rather than a talented person.
From India, Delhi
Dear Amit,
I am fully agree and endorsing point of view of Mr. Divekar, even you may be able to recollect whenever succession planning fails in past or current, there are major losses who failed to plan or execute it in the manner it is desired. I would like to quote two examples here one for ancient era where Bhishma fail to the succession planning and you are aware of the results. In todays scenario our current prime minister brought government first ordinance to deploy Mr. N. Mishra, now the result you be able to evaluate.
An old saying is if you "fail to plan it means you are planning to fail", it is very simple as per practice if you are aware that you need to replace the person soon after attaining the age of 58, and you fail to provide a competent replacement to the organization, the reasons are too much if we look into it. Now the question is how to deal with it.
I am not at all against employing old associates, loyal, competent, versatile, you may continue their services as a consultant, advisor or kind of role, as ultimately organization shouldn't suffer.
From India, Gurgaon
I am fully agree and endorsing point of view of Mr. Divekar, even you may be able to recollect whenever succession planning fails in past or current, there are major losses who failed to plan or execute it in the manner it is desired. I would like to quote two examples here one for ancient era where Bhishma fail to the succession planning and you are aware of the results. In todays scenario our current prime minister brought government first ordinance to deploy Mr. N. Mishra, now the result you be able to evaluate.
An old saying is if you "fail to plan it means you are planning to fail", it is very simple as per practice if you are aware that you need to replace the person soon after attaining the age of 58, and you fail to provide a competent replacement to the organization, the reasons are too much if we look into it. Now the question is how to deal with it.
I am not at all against employing old associates, loyal, competent, versatile, you may continue their services as a consultant, advisor or kind of role, as ultimately organization shouldn't suffer.
From India, Gurgaon
Dear All,
Thanks for sharing your considerable view and thoughts on subject.
Discussion remain fruitful.
Regarding EPF - Please note that EPF member remain EPF member even after attaining age of 58 years if his employment remain continue. Only EPS (pension) is discontinued. Either, he can withdraw his Pension share if service is less than 10 years, or he can apply for pension if his service is 10 or more years.
With regards,
Talwinder Singh
From India, Chandigarh
Thanks for sharing your considerable view and thoughts on subject.
Discussion remain fruitful.
Regarding EPF - Please note that EPF member remain EPF member even after attaining age of 58 years if his employment remain continue. Only EPS (pension) is discontinued. Either, he can withdraw his Pension share if service is less than 10 years, or he can apply for pension if his service is 10 or more years.
With regards,
Talwinder Singh
From India, Chandigarh
A few points which I wish to add in the discussion...
1. Epf act doesnot restrict PF to age of 58 years or for any age. Member can continue his PF contribution as long as he is in service. Only little change takes place on reaching 58 is that his employer's contribution starts going to PF Account instead of going to pension account. Before 58 it used to go to Pension Account. So after 58, no any benefits reduced.
2. Reaching a certain age, is a very natural process and hence stopping at one point is necessary. Countries have difderent age of retirements and even different age of retirement given to different classes. For Industrial working class, age has been set to 60 years. Model Standing Orders under the Insustrial Employment Standing Orders do prescribe age of superannuation to 60 years.
3. If people do not retire then how young people will get emploment? So there is nothing sentimental or harsh when one is retired from service on reaching a certain age. But, I wonder reference to human rights on the point of age discrimination comes into play ? The concept of age discrimination is totally different than what is referred to in the post. Perhaps, in future, continuing a senior employee may be regarded as a "cruelty to senior citizens".
4. The concept of "Four Ashrams" which includes "Wanprasthashram" has been given its place. If a person starts job at say- 18 years of his age, then on reaching 58 will mean that, he worked for 40 years. That was the limit of Gratuity (20 years salary) earlier. Now also this limit is to be read with Rs. 10 lacs whichever is higher.
5. I hope I have explained sufficiently the background thought of concept of Superannuation.
From India, Kolhapur
1. Epf act doesnot restrict PF to age of 58 years or for any age. Member can continue his PF contribution as long as he is in service. Only little change takes place on reaching 58 is that his employer's contribution starts going to PF Account instead of going to pension account. Before 58 it used to go to Pension Account. So after 58, no any benefits reduced.
2. Reaching a certain age, is a very natural process and hence stopping at one point is necessary. Countries have difderent age of retirements and even different age of retirement given to different classes. For Industrial working class, age has been set to 60 years. Model Standing Orders under the Insustrial Employment Standing Orders do prescribe age of superannuation to 60 years.
3. If people do not retire then how young people will get emploment? So there is nothing sentimental or harsh when one is retired from service on reaching a certain age. But, I wonder reference to human rights on the point of age discrimination comes into play ? The concept of age discrimination is totally different than what is referred to in the post. Perhaps, in future, continuing a senior employee may be regarded as a "cruelty to senior citizens".
4. The concept of "Four Ashrams" which includes "Wanprasthashram" has been given its place. If a person starts job at say- 18 years of his age, then on reaching 58 will mean that, he worked for 40 years. That was the limit of Gratuity (20 years salary) earlier. Now also this limit is to be read with Rs. 10 lacs whichever is higher.
5. I hope I have explained sufficiently the background thought of concept of Superannuation.
From India, Kolhapur
Dear Sirs,
Regarding EPF, there is no age bar. As long as the employees are in service beyond 58 years of age, EPF is statutory.
• However, under EPS 1995, an employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the Scheme, whichever is earlier. Therefore, pension contribution has to be stopped on the day of attaining 58 years.
• Contribution to the pension fund (8.33%) will be diverted to the Provident Fund (whole of 24% i.e. 12% + 12 %) and the pension fund account will be closed. While generating the PF challan, in Account No. 10, deduction of no. of subscribers who have attained 58 years of age shall be made.
I may be enlightened on the correctness of the above provisions.
High regards,
Libin MP
From India, undefined
Regarding EPF, there is no age bar. As long as the employees are in service beyond 58 years of age, EPF is statutory.
• However, under EPS 1995, an employee shall cease to be the member of Pension Fund from the date of attaining 58 years of age or from the date of vesting admissible benefits under the Scheme, whichever is earlier. Therefore, pension contribution has to be stopped on the day of attaining 58 years.
• Contribution to the pension fund (8.33%) will be diverted to the Provident Fund (whole of 24% i.e. 12% + 12 %) and the pension fund account will be closed. While generating the PF challan, in Account No. 10, deduction of no. of subscribers who have attained 58 years of age shall be made.
I may be enlightened on the correctness of the above provisions.
High regards,
Libin MP
From India, undefined
Dear Amit,
Everyone has rightly said and no one is against the retaining employees, the issues arises as why you or your organization want to retain them, Is there lack of succession planning, is there lack of skills in available manpower, or if it is its not good sign for a health organization.
From India, Gurgaon
Everyone has rightly said and no one is against the retaining employees, the issues arises as why you or your organization want to retain them, Is there lack of succession planning, is there lack of skills in available manpower, or if it is its not good sign for a health organization.
From India, Gurgaon
Dear Mr Kulkarni ,
Thanks for the excellent write up and justification for retirement and 'Wanprasthashram' advice post 58 yrs. But then most of our politicians should have been on the mountains or in deep woods observing penance ! If they can continue past practically any age ( 93 yrs old Achutanandan in Kerala was ready to become CM) then is it not too much to expect an "aam aadmi" to accept retirement at, not old , but middle age of 58yrs ?
From India, New Delhi
Thanks for the excellent write up and justification for retirement and 'Wanprasthashram' advice post 58 yrs. But then most of our politicians should have been on the mountains or in deep woods observing penance ! If they can continue past practically any age ( 93 yrs old Achutanandan in Kerala was ready to become CM) then is it not too much to expect an "aam aadmi" to accept retirement at, not old , but middle age of 58yrs ?
From India, New Delhi
Dear Sai Bhakta,
I would like to correct you, as in British Raj, age of retirement was only 55 years, not 58 years.
After 15 years of independence, It was the Government of India, which raised the retirement age of Government Employees from 55 to 58 in the year 1962. Age of retire,ent was raised from 58 years to 60 years in the year 1998.
From India, Delhi
I would like to correct you, as in British Raj, age of retirement was only 55 years, not 58 years.
After 15 years of independence, It was the Government of India, which raised the retirement age of Government Employees from 55 to 58 in the year 1962. Age of retire,ent was raised from 58 years to 60 years in the year 1998.
From India, Delhi
Dear Mr Dhingra ,
The retirement age for government employees was raised to 60yrs in 1998.Many central PSUs followed sue but in a year or two many of them rolled back their retirement age to 58yrs.Even in cases where 58yrs was the retirement age the management reserved the right to retire an employee any time after he/she attained 55yrs age.Ofcourse the employee too had the freedom to ask for retirement.So the British legacy was very much there just like it was for several years in our Budget presentation in parliament at 4.30p.m.which was 11 a.m.in London and convinient for the 'Masters'.
From India, New Delhi
The retirement age for government employees was raised to 60yrs in 1998.Many central PSUs followed sue but in a year or two many of them rolled back their retirement age to 58yrs.Even in cases where 58yrs was the retirement age the management reserved the right to retire an employee any time after he/she attained 55yrs age.Ofcourse the employee too had the freedom to ask for retirement.So the British legacy was very much there just like it was for several years in our Budget presentation in parliament at 4.30p.m.which was 11 a.m.in London and convinient for the 'Masters'.
From India, New Delhi
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