We rehire retired employees after all settlement of pf gratuity under contract of employment, is again pf applicable when salary is paid to those employees.
From India, Chennai
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From India, Chennai
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Hi,
Retired employees: I hope you are referring to employees who attained the age of 58 and were relieved.
When you rehire them as Retainer Consultants with a Retainer fee subject to TDS at 10%, there is no need for PF. They will not be considered regular employees.
From India, Madras
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1153Retired employees: I hope you are referring to employees who attained the age of 58 and were relieved.
When you rehire them as Retainer Consultants with a Retainer fee subject to TDS at 10%, there is no need for PF. They will not be considered regular employees.
From India, Madras
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It depends upon the nature of the appointment. If the employee is expected to come to the office and remain in the office for regular office timings, apply for leave like any other employee, follow the dress code (if any) of the company, and adhere to other formalities and protocols to avail certain benefits, he will have the status of an employee regardless of the designation given. In the case of Wockhardt Hospitals Ltd Vs Department of Income Tax, doctors whose income from the hospital (employer) was subject to deduction of tax at source u/s 194J were treated as employees and their income was made deductible u/s 192 as salary. This was based on the finding that these doctors followed HR protocols regarding timing, leave rules, etc.
Many organizations rehire retired professionals without assigning them a professional capacity. A professional may not be required to come to the office daily at the same time as other employees and may not need to request leave when absent for any reason. Restricting the person from engaging in other profit-making activities does not change their status as an "employee." Therefore, if the person is expected to work like any other employee, it would be appropriate to offer them employment rather than a retainership.
From India, Kannur
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Many organizations rehire retired professionals without assigning them a professional capacity. A professional may not be required to come to the office daily at the same time as other employees and may not need to request leave when absent for any reason. Restricting the person from engaging in other profit-making activities does not change their status as an "employee." Therefore, if the person is expected to work like any other employee, it would be appropriate to offer them employment rather than a retainership.
From India, Kannur
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There is no age limit for PF membership as per the EPF Act 1952. However, no contribution would go to EPS account after 58, and the entire PF contribution of the employee would go to the EPF corpus.
We had encountered a problem that is relevant here. Many employees had retired from service pending wage revision, and their PF, gratuity, and F&F were settled much before the wage revision came. After the wage revision, the retired employees were given a salary revision with the PF contribution and the employer contribution shown distinctly in the payslip issued for the purpose. Since the accounts were already closed, the employer paid the amount directly to the employees. Such retired employees later agitated the matter that had their PF amounts been routed through the PF Account they would have got related Income Tax relief. The PF authorities ruled in favor of the retired employees and held that PF A/c of the employees could have been reopened. The appeal before the Appellate Tribunal didn't help the employer.
From India, Mumbai
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We had encountered a problem that is relevant here. Many employees had retired from service pending wage revision, and their PF, gratuity, and F&F were settled much before the wage revision came. After the wage revision, the retired employees were given a salary revision with the PF contribution and the employer contribution shown distinctly in the payslip issued for the purpose. Since the accounts were already closed, the employer paid the amount directly to the employees. Such retired employees later agitated the matter that had their PF amounts been routed through the PF Account they would have got related Income Tax relief. The PF authorities ruled in favor of the retired employees and held that PF A/c of the employees could have been reopened. The appeal before the Appellate Tribunal didn't help the employer.
From India, Mumbai
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If the rehired retired employee was a member of EPFO and subsequently settled his PF and EPS, if any, then the employee is an excluded employee under PF & Misc. Act. There is no need to continue as a member of EPFO. If it is otherwise (not a member of EPFO, etc.), he will continue to be an EPFO member as nicely explained by Madhu TK, and the conditions of employment are like a regular employee. Only if the age is more than 58, the entire contribution will be deposited to PF only, and no contribution to EPS.
S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah) CEO - USD HR Solutions +91 98310 81531
From India, New Delhi
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Yes, PF will be applicable for rehired retired employees even if they have already received PF and gratuity settlements. The employer must continue to contribute to the employee's PF account during the period of their employment, as long as they are eligible for PF contributions.
However, if the employee has already withdrawn their PF balance or transferred it to a new account, then the new contributions will go towards the creation of a new account. In such cases, the employer must provide the employee with a new PF account number.
It is important to note that the rules regarding PF contributions and eligibility may vary depending on the specific circumstances of the employee and the organization. Therefore, it is advisable to consult with a qualified financial advisor or HR expert for guidance on how to handle PF contributions for rehired retired employees.
I hope this information helps. Let me know if you have any further questions.
From India
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However, if the employee has already withdrawn their PF balance or transferred it to a new account, then the new contributions will go towards the creation of a new account. In such cases, the employer must provide the employee with a new PF account number.
It is important to note that the rules regarding PF contributions and eligibility may vary depending on the specific circumstances of the employee and the organization. Therefore, it is advisable to consult with a qualified financial advisor or HR expert for guidance on how to handle PF contributions for rehired retired employees.
I hope this information helps. Let me know if you have any further questions.
From India
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PF will not be eligible if the employee is an excluded employee under PF & Misc. Act. As per the definition of an Excluded employee, the following are the excluded employees:
1. At the time of first-time employment, the PF gross is more than ₹15,000 per month as of the date.
2. An earlier member of PF but subsequently left the job, closed the PF account, and then rejoined with a higher PF Gross is also considered an excluded employee.
3. If an individual was a member of EPFO and retired after attaining the age of 58, settled PF & EPS, and then rejoined with PF coverage salary, they are also considered an excluded employee.
Please refer to the definition under the Act for further clarification.
If the employer is interested in paying PF even for excluded employees, it is at the discretion of the employer.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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1. At the time of first-time employment, the PF gross is more than ₹15,000 per month as of the date.
2. An earlier member of PF but subsequently left the job, closed the PF account, and then rejoined with a higher PF Gross is also considered an excluded employee.
3. If an individual was a member of EPFO and retired after attaining the age of 58, settled PF & EPS, and then rejoined with PF coverage salary, they are also considered an excluded employee.
Please refer to the definition under the Act for further clarification.
If the employer is interested in paying PF even for excluded employees, it is at the discretion of the employer.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Dear Lakshmi Narayanan, After age of 60 PF will be not applicable to an contract employee even his basic cell is less then Rs.15000/- Regards, Sanjay Tiwari Dy. GM(HRD & IR) M: 9727704102
From India, New Delhi
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From India, New Delhi
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Dear S. Tiwari, age is not an employee for coverage, but an employee who joins your establishment with a salary of less than Rs 15,000 will have to be covered if he is not an excluded employee. An excluded employee is one who has withdrawn his PF accumulations and is in receipt of a pension from the Employees' Provident Fund Organisation. Even a person who is receiving government pension should be covered by EPF if his salary is within Rs 15,000. The same treatment applies to a contract employee as well.
From India, Kannur
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From India, Kannur
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1. If an employee attains 58 years of age, will the deposit in the pension fund continue?
Ans: No, after reaching 58 years, the entire fund will be deposited in PF Accounts, not in the Family Pension fund.
2. If an employee is engaged in any establishment after reaching the superannuation age of 60 years, is EPF deposit mandatory?
Ans: EPF deposit is not mandatory after 60 years of service.
From India, New Delhi
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Ans: No, after reaching 58 years, the entire fund will be deposited in PF Accounts, not in the Family Pension fund.
2. If an employee is engaged in any establishment after reaching the superannuation age of 60 years, is EPF deposit mandatory?
Ans: EPF deposit is not mandatory after 60 years of service.
From India, New Delhi
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