I have an employee who has attained the age of 58 as of December 2018. Now, the question arises: should I continue deducting PF or ESIC from his salary or not? If yes, then all the amount will go to PF only, not in the Pension Scheme.
Another question is that he hasn't completed his 10 years to qualify for a pension. So, can his full amount be withdrawn or not?
From India, Kanpur
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6Another question is that he hasn't completed his 10 years to qualify for a pension. So, can his full amount be withdrawn or not?
From India, Kanpur
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Unless the employee leaves or retires from the payroll, the deduction will continue. After 58, the account 10 is closed normally, but the employee can opt to continue for (4 x 6 months) 2 years. This choice will increase his pension eligibility or amount.
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In my case, my employee has completed 58 years of age, and his pension years are 8. Now, the thing he is asking is:
Is it compulsory now to deduct PF & ESIC? Will the deduction help him in getting a pension?
For myself, if I continue deduction, 8.33% (of the pension portion) will automatically be deposited into his PF, or do I have to make any changes for him?
From India, Kanpur
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Is it compulsory now to deduct PF & ESIC? Will the deduction help him in getting a pension?
For myself, if I continue deduction, 8.33% (of the pension portion) will automatically be deposited into his PF, or do I have to make any changes for him?
From India, Kanpur
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EPS (A/C 10) contribution can be made up to the age of 62, but with mutual understanding between the employer and employee. This increases both the pension eligibility and amount. If anyone disagrees, then 58 plus the ceiling is to be maintained, and the entire amount will be paid to A/C No. 1.
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