Please suggestion for peon payment mode after retirement age 60 years & what is other compliance effect for his payment ?
From India, Vadodara
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1From India, Vadodara
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Ask the peon to open a joint account in a nationalized bank. Monthly pension can be electronically transferred to his account. Other payments like PF and gratuity will also go into the same account. What exactly is the query? What I mentioned are normal modes of payment.
From India, Pune
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From India, Pune
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Completely agree with Mr. Nathrao post only thing I would like to inform is, he needs to open a personal bank account only as PF normally does not accept any joint account for withdrawal of PF money.
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It seems that the questioner is desirous of keeping the employee on post-retirement after settling his terminal benefit dues. If the payment mode he refers to is the employee's monthly compensation, it can be as usual or a consolidated sum equal to the last drawn salary plus the employer's contribution of EPF (as it is not required to be paid after superannuation).
From India, Salem
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From India, Salem
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PF does not accept any joint holder account for PF settlement! Is there any notification or circular in this regard? Or is this the PF authority's personal propaganda!
Though this is my personal opinion, that these types of rules are only meant to harass an individual because then may the Bank also tell that a person is not allowed to have more than one account in that Bank. We cannot expect a senior citizen to run for opening an individual bank account and that too only for the sake of PF. Apart from that, the maintenance of the bank account may be troublesome for that retired person and unnecessarily the Bank will pose service charge for maintenance or less than minimum balance. Then again, the retired person will run from table to table to close that bank account! Even this is not possible for any individual, for him, it is more important to look for a job, rather than seek an individual bank account.
From India, Kolkata
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Though this is my personal opinion, that these types of rules are only meant to harass an individual because then may the Bank also tell that a person is not allowed to have more than one account in that Bank. We cannot expect a senior citizen to run for opening an individual bank account and that too only for the sake of PF. Apart from that, the maintenance of the bank account may be troublesome for that retired person and unnecessarily the Bank will pose service charge for maintenance or less than minimum balance. Then again, the retired person will run from table to table to close that bank account! Even this is not possible for any individual, for him, it is more important to look for a job, rather than seek an individual bank account.
From India, Kolkata
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Dear Pradipts, Joint banks a/cs are very much acceptable. Circular to this effect was sent out as early as in Jun 2012.
From India, Pune
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From India, Pune
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Dear Friends,
Our learned friend Nathrao is very much correct in saying that a joint bank account is accepted by the PF authority for settling the PF claim. He has now provided us with the circular by EPFO to that effect. However, there are two important things in it. The first one is that the member should be the first holder in the joint bank account, and the other is that the account should be joint with the spouse.
For Pension, this circular is not applicable, and the member has to open a pension account in his name in one of the five nationalized banks.
From India, Mumbai
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Our learned friend Nathrao is very much correct in saying that a joint bank account is accepted by the PF authority for settling the PF claim. He has now provided us with the circular by EPFO to that effect. However, there are two important things in it. The first one is that the member should be the first holder in the joint bank account, and the other is that the account should be joint with the spouse.
For Pension, this circular is not applicable, and the member has to open a pension account in his name in one of the five nationalized banks.
From India, Mumbai
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Dear Friends,
I also strongly feel, like our Senior learned member Umakanthan Sir, that the query pertains to the employment of a person after retirement and what are the due compliances. My comments on this query are as follows:
I would like to ask some questions here:
- If a person is to be continued after retirement, why was he retired by the company?
- Was an extension to his employment not possible?
- How can a person be taken on the payroll after retirement?
- When you take a person after retirement, what is the meaning of retirement?
Now, the fact is that the person is employed after retirement. So, what are the labor laws governing him?
In my view:
1. He is entitled to wages as per MW rates.
2. He is to be paid wages not in cash.
3. His name is to be borne on the muster roll and wage register.
4. He should be given all the benefits as given to other employees, and he should not be subjected to discrimination.
5. He is an exempted employee under EPF but not under ESIC if his wages are less than 21K.
6. Deduction of PTax from wages shall be effected as per prevailing law in the State. In Maharashtra, PTax is exempted at the age of 65 completed.
There is no concept of off-roll. In the peon category, you cannot take him as a consultant or settle his dues on a voucher monthly.
Recently, one of my clients faced a complaint from his retired employee. The retired employee was engaged duly on humanitarian grounds and was paid on a voucher every month. After serving for 7+ years post-retirement, due to his old age, he was asked to sit at home. He claimed from the company his full and final settlement, including the difference in wages as he was not paid as per MW, leave salary for 7+ years, gratuity, etc.
I have quoted this example so that we in the HR fraternity should take some lessons from such incidents around. Members are requested to make comments on this posting of mine.
From India, Mumbai
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I also strongly feel, like our Senior learned member Umakanthan Sir, that the query pertains to the employment of a person after retirement and what are the due compliances. My comments on this query are as follows:
I would like to ask some questions here:
- If a person is to be continued after retirement, why was he retired by the company?
- Was an extension to his employment not possible?
- How can a person be taken on the payroll after retirement?
- When you take a person after retirement, what is the meaning of retirement?
Now, the fact is that the person is employed after retirement. So, what are the labor laws governing him?
In my view:
1. He is entitled to wages as per MW rates.
2. He is to be paid wages not in cash.
3. His name is to be borne on the muster roll and wage register.
4. He should be given all the benefits as given to other employees, and he should not be subjected to discrimination.
5. He is an exempted employee under EPF but not under ESIC if his wages are less than 21K.
6. Deduction of PTax from wages shall be effected as per prevailing law in the State. In Maharashtra, PTax is exempted at the age of 65 completed.
There is no concept of off-roll. In the peon category, you cannot take him as a consultant or settle his dues on a voucher monthly.
Recently, one of my clients faced a complaint from his retired employee. The retired employee was engaged duly on humanitarian grounds and was paid on a voucher every month. After serving for 7+ years post-retirement, due to his old age, he was asked to sit at home. He claimed from the company his full and final settlement, including the difference in wages as he was not paid as per MW, leave salary for 7+ years, gratuity, etc.
I have quoted this example so that we in the HR fraternity should take some lessons from such incidents around. Members are requested to make comments on this posting of mine.
From India, Mumbai
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Recently, one of my clients faced a complaint from his retired employee. The retired employee was hired on humanitarian grounds and was paid monthly through vouchers. The hiring decision seemed to lack proper guidance from HR. While the intention may have been humanitarian, the necessary legal paperwork and due diligence should have been carried out. Compliance with labor laws, such as the MW Act, should have been ensured.
It raises questions about the process for claiming gratuity. Was the employee not entitled to gratuity earlier?
From India, Pune
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It raises questions about the process for claiming gratuity. Was the employee not entitled to gratuity earlier?
From India, Pune
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Dear Friends,
Very good discussion on a retired person's continuation in the same profession and the same place. In my view:
- There is no rule to open a separate bank account.
- He is not eligible for PF pension. He is eligible for PF only (since he has a UAN number and is continuing in the same place).
- If he needs to open a bank account, he may open a separate bank account at any other bank.
- The employer has to provide an assurance policy.
- He is eligible for ESI if his income is below 21k.
Regards,
Dr. PBS KUMAR
From India, Kakinada
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Very good discussion on a retired person's continuation in the same profession and the same place. In my view:
- There is no rule to open a separate bank account.
- He is not eligible for PF pension. He is eligible for PF only (since he has a UAN number and is continuing in the same place).
- If he needs to open a bank account, he may open a separate bank account at any other bank.
- The employer has to provide an assurance policy.
- He is eligible for ESI if his income is below 21k.
Regards,
Dr. PBS KUMAR
From India, Kakinada
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PF payment in physical mode only upto 30.6.2016.pdf
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