Dear all members
i am working in a manufacturing factory as hr executive. we have retained some employees in service after their 55 years . in our company retirement age is fixed at 55 years. but we retained them as they are still efficient and want to work. my question is it compulsory by law to deduct their pf contribution?
plz guide me about statutory provisions regarding dis.. shall we deduct his pf as well as employer share or its not mandatory..?
plz help me.
waiting for your suggestions..
regards
milind
From India, Nasik
1i am working in a manufacturing factory as hr executive. we have retained some employees in service after their 55 years . in our company retirement age is fixed at 55 years. but we retained them as they are still efficient and want to work. my question is it compulsory by law to deduct their pf contribution?
plz guide me about statutory provisions regarding dis.. shall we deduct his pf as well as employer share or its not mandatory..?
plz help me.
waiting for your suggestions..
regards
milind
From India, Nasik
dear Milind,
As per your company policy the retirement age is 55 yrs and you want to retain some of the critical employees then retain and convert them as consultants, except IT no other statutory like PF, ESI, PT etc are not applicable for consultants.
Hope you are clear.
Regards - kamesh
From India, Hyderabad
As per your company policy the retirement age is 55 yrs and you want to retain some of the critical employees then retain and convert them as consultants, except IT no other statutory like PF, ESI, PT etc are not applicable for consultants.
Hope you are clear.
Regards - kamesh
From India, Hyderabad
Dear Milind,
Regarding EPF, there is no age bar. As long as they are in service, EPF is statutory. But pension contribution has to be stopped on the day of attaining 58 years. After the age of 58yrs, the employee will be eligible for both salary and pension.
Abbas.P.S
From India, Bangalore
Regarding EPF, there is no age bar. As long as they are in service, EPF is statutory. But pension contribution has to be stopped on the day of attaining 58 years. After the age of 58yrs, the employee will be eligible for both salary and pension.
Abbas.P.S
From India, Bangalore
dear abbas and kamesh
i have gathered somw information about it..
that is..
After age of retirement no employee can be full time employee. His/her PF contribution will remains continue. But contribution to the pension fund (8.33%) will be diverted to the provident fund (Whole 24%) and the pension fund account will be closed.
so.. is it correct?
waiting for reply
regards
milind
From India, Nasik
i have gathered somw information about it..
that is..
After age of retirement no employee can be full time employee. His/her PF contribution will remains continue. But contribution to the pension fund (8.33%) will be diverted to the provident fund (Whole 24%) and the pension fund account will be closed.
so.. is it correct?
waiting for reply
regards
milind
From India, Nasik
dear milind,
yes, it is correct, after retirement, pf deptt. only accept 24% as pf alone(nothing in pension account) so, while generating pf challan, you have to reduce one subscriber in account no.10 also.
regards,
babanaresh
From India, Delhi
yes, it is correct, after retirement, pf deptt. only accept 24% as pf alone(nothing in pension account) so, while generating pf challan, you have to reduce one subscriber in account no.10 also.
regards,
babanaresh
From India, Delhi
P.F for retired employee.
There is no doubt that an employee who, having been member of the P.F. fund of an establishment, withdrew the full amount of his accumulations on the eve of his retirement as admissible under para 69 of the P.F. Scheme 1952, framed under P.F. Act 1952, is an ‘excluded employee’ and is not eligible to join fund under Para 26 of the scheme. However, once he is re-appointed in connection with the work of the company and his remuneration is within the wage limit of Rs. 6,500/-, he attracts the definition of ‘employee’ and the Act becomes applicable to him afresh. In Harrison Malayalam Ltd. & Ors v. RPFC & Ors. (Cal H.C) 2001 I LLJ 1160.
the company was held liable to cover an employee who took VRS and received his P.F. amount and was re-appointed on lump-sum basis thereafter.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt Ltd.
Mumbai
From India, Mumbai
There is no doubt that an employee who, having been member of the P.F. fund of an establishment, withdrew the full amount of his accumulations on the eve of his retirement as admissible under para 69 of the P.F. Scheme 1952, framed under P.F. Act 1952, is an ‘excluded employee’ and is not eligible to join fund under Para 26 of the scheme. However, once he is re-appointed in connection with the work of the company and his remuneration is within the wage limit of Rs. 6,500/-, he attracts the definition of ‘employee’ and the Act becomes applicable to him afresh. In Harrison Malayalam Ltd. & Ors v. RPFC & Ors. (Cal H.C) 2001 I LLJ 1160.
the company was held liable to cover an employee who took VRS and received his P.F. amount and was re-appointed on lump-sum basis thereafter.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt Ltd.
Mumbai
From India, Mumbai
Dear Friends,
Employment or RE-EMPLOYMENT of a retired employee in an estt, if an employer fails to cover an eligible employee, the employer will have to pay even the employee's contribution since an employer has been debarred in making recovery of member's subscription for more than one month's subs. as per provisions of para 32 of the EPFS. In this context there are two types of retired employees -
i. Those who retire from the estt. which are covered under EPFS & Act.1952 and
ii. Those who retire after working in estts. not covered under the Act.
In the former case, the retired employee having (if) settled his PF A/c. will not be eligible for PF on re-engagement. If he has not (been) settled his PF A/c. and reemployed then he is eligible to continue his PF A/c. and the estt. has to oblige him irrespective of whether or not drawing > Rs.6,500/.
Ref. case laws: 1. The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.)
2. The Calcutta Telephones Vs.Presiding Officer Central Govt. Industrial Tribunal, 2001-II CLR 108 (Calcutta H.C.)
(Sorry to say the full text of case laws are not readily available, since quoted from the reference books)
In the present case - The question will have to be decided upon whether the re-employed employee closed his PF A/c. or not on the first day of his rejoining and whether his salary is < or > than Rs.6,500/- p.m. on his re-appointment.
The question of full time or part-time doesn't arise as the part-time employee also to be covered if they are eligible. Even persons working from home (Like Beedi workers and an Accountant who writes the a/cs of the Estt. sitting at home) also to be covered under PF.
Here a question arises whether the retired employee was given extension of service beyond 55 yrs (the age of super annuation) or re-appointed afresh with new terms & conditions after he was fully settled (as he used the term " retained").
You may decide based on the facts of the case.
Dear friends, pl.don't decide a case with an intention to deny any one any benefits which are justifiably due to him. Laws are not meant to deny anybody but to safeguard one's legal rights.Rgds,
kumar.s.
From India, Bangalore
Employment or RE-EMPLOYMENT of a retired employee in an estt, if an employer fails to cover an eligible employee, the employer will have to pay even the employee's contribution since an employer has been debarred in making recovery of member's subscription for more than one month's subs. as per provisions of para 32 of the EPFS. In this context there are two types of retired employees -
i. Those who retire from the estt. which are covered under EPFS & Act.1952 and
ii. Those who retire after working in estts. not covered under the Act.
In the former case, the retired employee having (if) settled his PF A/c. will not be eligible for PF on re-engagement. If he has not (been) settled his PF A/c. and reemployed then he is eligible to continue his PF A/c. and the estt. has to oblige him irrespective of whether or not drawing > Rs.6,500/.
Ref. case laws: 1. The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.)
2. The Calcutta Telephones Vs.Presiding Officer Central Govt. Industrial Tribunal, 2001-II CLR 108 (Calcutta H.C.)
(Sorry to say the full text of case laws are not readily available, since quoted from the reference books)
In the present case - The question will have to be decided upon whether the re-employed employee closed his PF A/c. or not on the first day of his rejoining and whether his salary is < or > than Rs.6,500/- p.m. on his re-appointment.
The question of full time or part-time doesn't arise as the part-time employee also to be covered if they are eligible. Even persons working from home (Like Beedi workers and an Accountant who writes the a/cs of the Estt. sitting at home) also to be covered under PF.
Here a question arises whether the retired employee was given extension of service beyond 55 yrs (the age of super annuation) or re-appointed afresh with new terms & conditions after he was fully settled (as he used the term " retained").
You may decide based on the facts of the case.
Dear friends, pl.don't decide a case with an intention to deny any one any benefits which are justifiably due to him. Laws are not meant to deny anybody but to safeguard one's legal rights.Rgds,
kumar.s.
From India, Bangalore
Dear Kumar. s.
Thank for referring those 2 ref: case laws. Kindly give us a small information that is there any new update in The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.) or still the same judgement is continuing.
Regards
Ratikanta Rath
From India, Durgapur
Thank for referring those 2 ref: case laws. Kindly give us a small information that is there any new update in The Bombay Printers Ltd. Vs. Union of India, 1991 LLR 443 (Bombay H.C.) or still the same judgement is continuing.
Regards
Ratikanta Rath
From India, Durgapur
Dear Sir,
May i Know how do we calculate Compensation to a deceased employee under E.D.L.I. scheme if his service is 1 year or if his service is 5 year. what is the formula to determine compensation.what is the maximum limit under E.D.L.I. and how do we calculate pension under EPF act.
Vedvert Dalal (Executive HR)
09813522214
From India, Rohtak
May i Know how do we calculate Compensation to a deceased employee under E.D.L.I. scheme if his service is 1 year or if his service is 5 year. what is the formula to determine compensation.what is the maximum limit under E.D.L.I. and how do we calculate pension under EPF act.
Vedvert Dalal (Executive HR)
09813522214
From India, Rohtak
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2016 Nov 01 Payment of PF & EPS on the date of retirement.pdf
Settlement of PF & Pension on the day of Retirement.docx