Dear there,
I would like to know if there is a standard or common practice for the retirement age in Noida/UP (non-manufacturing company). Can we still hire the employee after his/her retirement? And how about the monthly PF contribution?
Thank you very much.
Br,
Ashia
From Canada, Calgary
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I would like to know if there is a standard or common practice for the retirement age in Noida/UP (non-manufacturing company). Can we still hire the employee after his/her retirement? And how about the monthly PF contribution?
Thank you very much.
Br,
Ashia
From Canada, Calgary
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The retirement age depends on the company policy. The policy regarding the engagement of retired employees also depends on the respective establishment. The only thing to be noted is that if the employee is serving even after the retirement age fixed under the Pension Scheme of Provident Fund, i.e., 58 years, the contribution payable by the employer, i.e., 12%, shall be paid only to the PF account without bifurcating it as 8.33% to the Pension Fund and the remaining 3.67% to PF. If an employee aged above 58 is hired, you should follow the same principle. However, if an employee who has already withdrawn his PF accumulations and is getting PF pension is hired, you can declare him as an excluded employee, and no need to pay it. Retired government servants, those retired from the Indian Railways, etc., who are getting a pension but not a pension from the EPFO, are to be covered if they are given employment in your establishment. In their case also, the contribution payable by the employer should not be bifurcated, but the entire 12% should be paid to PF only.
From India, Kannur
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4771From India, Kannur
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In the Noida area, I believe most companies have a retirement age of 60 years. This is typically applicable to large factories with established processes and certified standing orders.
For smaller SMEs, the retirement age would be determined based on how they value each individual employee. Therefore, I don't think this question can be answered definitively.
From India, Mumbai
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For smaller SMEs, the retirement age would be determined based on how they value each individual employee. Therefore, I don't think this question can be answered definitively.
From India, Mumbai
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Dear Sir, Madhu.T.K,
Thank you for your valuable information! One thing I have a query about is regarding "an employee who has already withdrawn his PF accumulations" -- is the PF accumulations referring to the PF account balance? And when you mention "getting PF pension," are you referring to receiving the PF pension amount from the Pension account?
Appreciate the help!
Best Regards,
Ashia
From Canada, Calgary
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Thank you for your valuable information! One thing I have a query about is regarding "an employee who has already withdrawn his PF accumulations" -- is the PF accumulations referring to the PF account balance? And when you mention "getting PF pension," are you referring to receiving the PF pension amount from the Pension account?
Appreciate the help!
Best Regards,
Ashia
From Canada, Calgary
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Dear Sir. Saswata, Thank you for the inputs! So for SMEs, we can decide different retirement age for different persons? Or should set a fixed rule for all employees? Best Regards, Ashia
From Canada, Calgary
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From Canada, Calgary
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"An employee who has already withdrawn his PF accumulations" means withdrawal of PF accumulations upon attaining the age of 58 and partial withdrawal for any reason. A person receiving PF pension is a member of the provident fund receiving a pension from the EPFO after reaching the age of 58.
Please let me know if you need any further clarification.
From India, Kannur
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Please let me know if you need any further clarification.
From India, Kannur
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Ashia,
If you are not under Standing Orders (which applies to an establishment that has 50 or more employees), you are free to set your retirement age. If you are under standing orders, then you need to follow the Model Standing Orders (or your own Certified Standing Orders).
The above is an internal decision, the impact of PF as explained above is different and independent of this decision as such. You can have a different age in PF and in your internal processes.
From India, Mumbai
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If you are not under Standing Orders (which applies to an establishment that has 50 or more employees), you are free to set your retirement age. If you are under standing orders, then you need to follow the Model Standing Orders (or your own Certified Standing Orders).
The above is an internal decision, the impact of PF as explained above is different and independent of this decision as such. You can have a different age in PF and in your internal processes.
From India, Mumbai
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Guys, I am working in a Co-op Credit Society Ltd. Now, my organization wants to amend two different retirement policies: one at age 60 for all employees and another at age 63 for the Managing Director and Operations Manager. I am confused about whether it is possible to do so without creating issues among those who are retiring at the age of 60. Please provide a legal opinion, if possible, regarding Labour Law.
From India, Mumbai
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From India, Mumbai
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Cooperative Credit Societies will have separate by-laws. However, if the management or board of directors decide that managers and top managerial personnel who are not covered by these by-laws and the Industrial Disputes Act should be governed by different rules, those rules can be enforced.
From India, Kannur
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From India, Kannur
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