Dear All,
I am writing to inform you and seek your advice regarding the status of five employees in our factory who have reached the age of 58 on various dates such as 10/04/2013 and 01/05/2013. I would like to know if they will be considered retired employees or not. I wish to continue their service under the same employee codes. Is this possible?
Our friend mentioned during the uploading of the ECR that the PF program is segregating the PF contributions into the employees' PF accounts instead of the EPS automatically. This is because the date of birth is already included in the ECR.
Thank you for your attention to this matter.
Best regards
From Netherlands
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1I am writing to inform you and seek your advice regarding the status of five employees in our factory who have reached the age of 58 on various dates such as 10/04/2013 and 01/05/2013. I would like to know if they will be considered retired employees or not. I wish to continue their service under the same employee codes. Is this possible?
Our friend mentioned during the uploading of the ECR that the PF program is segregating the PF contributions into the employees' PF accounts instead of the EPS automatically. This is because the date of birth is already included in the ECR.
Thank you for your attention to this matter.
Best regards
From Netherlands
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Dear Rajendra,
In this case, as the employee will be completing 58 years of age, the employer's share cannot be contributed toward EPS. Remember that Rs. 581.00 (8.33%) from employers' side, which used to be credited every month in EPS, will not be contributed anymore. Hence, the EPF software will automatically calculate and contribute only to the EPF scheme. Under the EPS scheme, the age of retirement stands at 58.
For more understanding, please refer to sections 6 to 12 of the Employees' Pension Scheme (EPS), 1995.
Warm regards,
Umesh Chaudhary
welcomeumesh@yahoo.com
From India, Delhi
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In this case, as the employee will be completing 58 years of age, the employer's share cannot be contributed toward EPS. Remember that Rs. 581.00 (8.33%) from employers' side, which used to be credited every month in EPS, will not be contributed anymore. Hence, the EPF software will automatically calculate and contribute only to the EPF scheme. Under the EPS scheme, the age of retirement stands at 58.
For more understanding, please refer to sections 6 to 12 of the Employees' Pension Scheme (EPS), 1995.
Warm regards,
Umesh Chaudhary
welcomeumesh@yahoo.com
From India, Delhi
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Your doubt seems to be that merely because those five employees attained the age of 58 years and consequently cease to be members of the pension scheme, they should be treated as retired as they draw superannuation pension. Retirement or superannuation from service is not dependent upon the cessation of an employee's membership of the pension on reaching the age of 58 years. It is governed by the service conditions of the employee, which stipulate the age of retirement. For example, if the service conditions of the employees, whether in the form of standing orders/service rules or settlements, stipulate 60 years as the age of superannuation, an employee shall continue to be in employment until he reaches the age of sixty years, though he may not continue to be a member of the pension scheme on reaching 58 years and drawing superannuation pension after 58 years while being in employment.
B. Saikumar
HR & labour Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & labour Law Advisor
Mumbai
From India, Mumbai
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