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Neha Rashmi (Sr. Executive- HR)     04 October 2010

Eligibility of PF and ESIC after retirement

Hi! I wanted to know if a person who is working in a company as a consultant ( not on payroll) and he has crossed retirementt age, Is he eligible for PF and ESI. His Gross salary is 7500/- p.m? Should that company deduct his PF and ESI

 

Regards

Neha

Sr. Executive-HR

Allied Lemuir



Learning

 14 Replies

Vinod Phulchand Pawar (Lawyer/Advocate)     10 October 2010

If the person not in the employment(on payrolll). He has not eligible for PF and ESIC.  

prashant1314 (HR Learner)     10 October 2010

Dear Neha,

After retirement if the person works with principal employer then PF & ESI deduction is depends on terms & conditions of the employment

PF - After 58 years -  No upper limit of age prescribed by the act. All amount goes to PF account only & no EPS contribution

EPS - Upper age limit is 58 years

ESI - This act has not prescribed any upper limit  of age so you can deduct the ESI in mutually agreed between the parties.

chandrasekkar c k (advocate)     09 November 2010

If he works as consultant then he is not an employee. the question of deducting esi and pf will not arise as he can be a consultant to other companies as well

jyoti (executive)     12 November 2010

If the persone even  not in the employment(on payrolll). He has also eligible for PF . but it depands up on the management.

vtreddy (sr lawyer)     13 November 2010

Dear Madam,

 

A dsignated fultime consultant will eligible ESI and PF benefits at par with others employees , whether is in pay role or any voucher payment etc.. but Pf penssion fund contributuion will not be there after 58 years.

VTREDDY

lawyer

radha krishna (vp-hr)     16 November 2010

Any employee who crosses the age of 58 years is an exempted employee under EPF & MP Act and not need to cover them under this act.

An empolyee without any age limit is to be covered under ESI Act.

A consultant is not an employee.There are many companies which issue appointment letter to consultant and pays remuneration along with employees every month by including in the payroll.In such cases, there is a possibility that the Inspecting Authorities bringing them in the coverage of the PF & ESI acts.

It is better, you always issue a workorder/purchase order for a consultant and advise him to raise an invoice every month for payment of his remuneration.  You have to pay 10.30% as Service Tax and all other issues raised by you may not be there.

 

radha krishna (vp-hr)     16 November 2010

Any employee who crosses the age of 58 years is an exempted employee under EPF & MP Act and not need to cover them under this act.

An empolyee without any age limit is to be covered under ESI Act.

A consultant is not an employee.There are many companies which issue appointment letter to consultant and pays remuneration along with employees every month by including in the payroll.In such cases, there is a possibility that the Inspecting Authorities bringing them in the coverage of the PF & ESI acts.

It is better, you always issue a workorder/purchase order for a consultant and advise him to raise an invoice every month for payment of his remuneration.  You have to pay 10.30% as Service Tax and all other issues raised by you may not be there.

E.A.MURUGAN (ADVOCATE)     23 November 2010

Dear Rashmi

Cealing for EPF Rs/-6500/PM and whereas for ESI Rs/-15000/-PM. Please note that where we employ anybody, we should cover under EPF and ESI Act.     Consultant is not an employee.      BUT PERSON WHO IS MORE THAN 58 YEARS ARE COVERED UNDER EPF ACT BUT NOT IN PENSION SCHEME. Both EPF contribution should accounted in PF A/c not in Pension account.

By E.A.MURUGAN

CONSULTANT AND ADVOATE

SALEM  TAMILNADU  98427 63303

 

SUDHAAKAR RAJASEKARAN (manager)     23 November 2010

Sir

Kindly clarify my doubt, in case of an employee getting enrolled the PF contribution entirely goes to his PF account, I believe , there will be no contribution from the employer side for this employee ( As the employee has crossed 58 years)  .  Pls correct me if I am wrong

Regards

R Sudhaakar

SUDHAAKAR RAJASEKARAN (manager)     23 November 2010

Sir

I need a clarification in Gratuity Act

As we all know the gratuity payable to the employee or nominee cannot be attached ? 

My question is whether the gratuity payable to the legal heir is attachable or not attachable

Regards

R Sudhaakar

Jagdish (Manager-Business Coordination)     17 March 2011

Dear Madam,

The employment of an Consultant is purely based on the Service Conditions.  But please note that Provident Fund  and Pension Fund should have to be recoverd from him till he attain the age of 60 and once, completion of the age of 60, NO Pension contribution should be recovered from him.

If you incorporate any conditon in the Contract for employment, that the concerned employee is NOT eligible for EPF/EPS/ESI etc, which  itself shows that the management is prejudised  and prepared the Service Conditions with an intentional view  for curtailment of statutory benefits !

Jagdish.K

+91 9947662384

upender (HR Asst.)     29 August 2012

Dear Sir,

 

Our contract employee age is 60years crossed.he is eligeble for esi deduction?

 

Regards,

 

UPENDER

HR Asst.

sunil kumar (legal assistant)     18 June 2014

dear members,

will the employer pay 24% (both share) after attaining the age of 58 of an employee or can deduct the share from employee salary.

 

with regards

sunil kumar

amitbhatnagar   11 January 2015

if the employee after the retirement age. He was temporary employee and he was deduct pf at the age of 72. This was legal or misuse. his name was on temporary employee register. please solve the problem.

 

Regards

Amit

amitbh7@gmail.com

 


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