In our company, one employee attained superannuation on 1st January 2011 but was reinstated as an extension of service on 2nd January 2011 on the basis of an agreement between the employer and the employee with the same pay structure with PF deduction.
Now, the employee wants to avail pension benefits. So, my question is whether he can avail pension benefits even when he is working on a contract but with PF benefits and will his PF deposits, which were made after his superannuation for the last 1 year and 10 months, get affected.
From India, Guwahati
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1Now, the employee wants to avail pension benefits. So, my question is whether he can avail pension benefits even when he is working on a contract but with PF benefits and will his PF deposits, which were made after his superannuation for the last 1 year and 10 months, get affected.
From India, Guwahati
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There is nothing wrong in engaging someone for employment after their superannuation. You can also cover them under the Provident Fund because there is no age limit for the provident fund. However, if the employee has crossed 58 years of age, the employer's contribution of 12% should be deposited in their provident fund only, without splitting it as 3.67% in PF and 8.33% in the Pension Fund. Even if this was done by oversight, the PF will not accept it as such but will redirect the pension portion of 8.33% to the provident fund. To reconcile this, simply visit the PF Office and make the necessary clerical changes.
The individual can apply for PF pension now and start receiving the pension. There is no restriction stating that a person receiving a pension from the EPF Organisation cannot be employed. They can be employed and continue contributing to their provident fund as well.
Please note that a person receiving a provident fund pension can be excluded from PF coverage.
Regards,
Madhu.T.K
From India, Kannur
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The individual can apply for PF pension now and start receiving the pension. There is no restriction stating that a person receiving a pension from the EPF Organisation cannot be employed. They can be employed and continue contributing to their provident fund as well.
Please note that a person receiving a provident fund pension can be excluded from PF coverage.
Regards,
Madhu.T.K
From India, Kannur
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The clarification given by Madhu Ji is legally correct. In such a situation, the retired person can continue his PF account in my view despite receiving his pensionary benefits.
A.K. Chandok
RPFC (Retd.)
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From India, Chandigarh
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A.K. Chandok
RPFC (Retd.)
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From India, Chandigarh
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An employee can continue his membership in EPF after completing 58 years and and draw Super annuation month pension in EPS '95. J Vaikunth Vaipav Consultants 09962113555
From India, Chennai
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From India, Chennai
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