I would like to know whether PF deduction is mandatory by PF law for employees continuing in employment after retirement / superannuation either on rolls or on contractual basis. If yes then is the entire PF act applicable to such employees or are there any special provisions under the act.
Pls provide supportings (if any)for the above.
Regards,
Sumeet
From India, Mumbai
7Pls provide supportings (if any)for the above.
Regards,
Sumeet
From India, Mumbai
The matter has been discussed in this forum quite a large number of times.
An employee rejoined after completing his age of superannuation from a company to which Provident Fund and Miscellaneous Act applied and is in receipt of provident fund pension is excluded form PF coverage in the new establishment or in the establishment where he continues after the age of superannuation. At the same time, if he is not a PF pensioner but a pensioner of state or central Govt. he should be covered and contribution at the same rate of 12% shall be deducted from him. However, the employer's contribution of 12% shall be fully deposited into his PF account alone without depositing 8.33% in Pension account.
There is no relevance whether he is under the permanent rolls or fixed Term contract and the deciding factor is whether he was earlier a PF subscriber and had he withdrew his PF benefits before joining your establishment and whether he is a PF pensioner or not.
Madhu.T.K
From India, Kannur
An employee rejoined after completing his age of superannuation from a company to which Provident Fund and Miscellaneous Act applied and is in receipt of provident fund pension is excluded form PF coverage in the new establishment or in the establishment where he continues after the age of superannuation. At the same time, if he is not a PF pensioner but a pensioner of state or central Govt. he should be covered and contribution at the same rate of 12% shall be deducted from him. However, the employer's contribution of 12% shall be fully deposited into his PF account alone without depositing 8.33% in Pension account.
There is no relevance whether he is under the permanent rolls or fixed Term contract and the deciding factor is whether he was earlier a PF subscriber and had he withdrew his PF benefits before joining your establishment and whether he is a PF pensioner or not.
Madhu.T.K
From India, Kannur
If the discussion is about superannuation means retirement than Madhu has answered and if superannuation means "superannuation scheme as retention benefit basic+da*15% for " then P.F. is not applicable
From India, Ahmadabad
From India, Ahmadabad
Dear Bhardwaj, Can you please clarify what is meant by "superannuation scheme as retention benefit basic+da*15% for " ? Madhu.T.K
From India, Kannur
From India, Kannur
Dear Madhu,
I have clearly stated about Superannuation Scheme for employees and introduced through I.R.D.A. and works under IT act Rules 89 to 91 deal with this aspect and 15% of Basic+DA is a formula.
Pls read the below explained on contributions;
82.6 Rules 87 and 88 specify the limits upto which ordinary annual contributions and initial contributions respectively are permissible.
82.6-1 Ordinary annual contributions - The ordinary annual contributions in respect of any employee by the employer should not exceed :
(27% of annual salary) minus (Employer’s contribution to any provident fund, whether recognised or not, for that year).
Illustration : Suppose the employee’s annual salary is Rs. 30,000, and the employer is contributing Rs. 3,000 to the provident fund account of that employee, the contribution to the superannuation fund of that employee should not exceed Rs. 8,100 (27% of salary) minus Rs. 3,000, i.e., Rs. 5,100.
*The statutory background for Superannuation scheme;
82.1 Section 2(6) of the Act defines an ‘approved superannuation fund’ as ‘a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Chief Commissioner or Commissioner in accordance with the rules contained in Part B of the Fourth Schedule’.
Further, LIC of India has this Superannuation scheme that one can visit P&GS department of LIC of India and understand in detail.
From India, Ahmadabad
I have clearly stated about Superannuation Scheme for employees and introduced through I.R.D.A. and works under IT act Rules 89 to 91 deal with this aspect and 15% of Basic+DA is a formula.
Pls read the below explained on contributions;
82.6 Rules 87 and 88 specify the limits upto which ordinary annual contributions and initial contributions respectively are permissible.
82.6-1 Ordinary annual contributions - The ordinary annual contributions in respect of any employee by the employer should not exceed :
(27% of annual salary) minus (Employer’s contribution to any provident fund, whether recognised or not, for that year).
Illustration : Suppose the employee’s annual salary is Rs. 30,000, and the employer is contributing Rs. 3,000 to the provident fund account of that employee, the contribution to the superannuation fund of that employee should not exceed Rs. 8,100 (27% of salary) minus Rs. 3,000, i.e., Rs. 5,100.
*The statutory background for Superannuation scheme;
82.1 Section 2(6) of the Act defines an ‘approved superannuation fund’ as ‘a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Chief Commissioner or Commissioner in accordance with the rules contained in Part B of the Fourth Schedule’.
Further, LIC of India has this Superannuation scheme that one can visit P&GS department of LIC of India and understand in detail.
From India, Ahmadabad
I am sorry, I am not convinced. I am quoting the Employees Provident Fund and Misc. Provisions Act and the liability of an employer towards coverage of an employee who has rejoined after retirement or withdrawal of Fund benefits. I hope the question was also pertaining to this only. Superannuation fund is not mandatory for all establishments and as such as far as a private establishment is concerned, I don't think that the scheme of superannuation through IRDA has any relevance. Certainly, LIC's gratuity fund has relevance but the same should be different from Provident Fund.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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