Boss2966
Industrial Relations
+3 Others

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Hi all,
Please guide me the terms and conditions of appointment while recruiting a person aged 58+.
* Is he eligible for PF, ESI, BONUS etc.?
* What are the deductions and nature of payment- salary/voucher/consolidated amount?
* Will WC Act applies in case during and in the course of employment as per Sec.3 of WC Act?
* Any other benefits?
Regards.
Surya.
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Boss2966
Industrial Relations
+3 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi all,
Please guide me the terms and conditions of appointment while recruiting a person aged 58+.
* Is he eligible for PF, ESI, BONUS etc.?
* What are the deductions and nature of payment- salary/voucher/consolidated amount?
* Will WC Act applies in case during and in the course of employment as per Sec.3 of WC Act?
* Any other benefits?
Regards.
Surya.
Community Prime Sponsors
FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS.
Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA.
Dear Sir,
All the above acts are applicable if you recruit an an employee who has crossed 58 years. But If the employee already member of the provident fund and started receiving pension then he may not be covered under EPF act provided the terms of appointment should clearly specify the exclusion.
Dear Sir,
All the above acts are applicable if you recruit an an employee who has crossed 58 years. But If the employee already member of the provident fund and started receiving pension then he may not be covered under EPF act provided the terms of appointment should clearly specify the exclusion.
In case if we engage a person above 58 years, then the PF Contribution (employer & Employee) shares will be credited only on EPF and the 8.33% will not go to Pension Fund. That 8.33 also will get credited in Employer PF amount. All other acts will be applicable as like others.
In case if we engage a person above 58 years, then the PF Contribution (employer & Employee) shares will be credited only on EPF and the 8.33% will not go to Pension Fund. That 8.33 also will get credited in Employer PF amount. All other acts will be applicable as like others.
Otherwise you can hire him as a consultant, in that case only consultation fees can be provided .
Otherwise you can hire him as a consultant, in that case only consultation fees can be provided .
You can employ persons over 58 years as employee provided your HR policy with regard to superannuation permits. If employed, he will be eligible for all benefits which are available to regular employees of the company. That means, if drawing salary of not more than Rs 15000, he should be given ESI. If he is not a PF pensioner or if he was not earlier a member of EPF and has not withdrawn the PF accumulations, he should be given PF also. Now for example, a person drawing Govt pension is not a PF pensioner and he should be covered since he is not a PF pensioner and was not a member of EPF earlier.

Just being aged 58 or above, you need not make him draw salary through voucher. You can include him among other employees under the same payroll. Voucher payments etc are made in order to avoid statutory contributions like those explained above. If you are straight forward why should you hide his employment by putting him under separate register etc?

Regarding Workmen Compensation Act, you are certainly liable to compensate him for any employment injury just like any other employee.

Madhu.T.K
You can employ persons over 58 years as employee provided your HR policy with regard to superannuation permits. If employed, he will be eligible for all benefits which are available to regular employees of the company. That means, if drawing salary of not more than Rs 15000, he should be given ESI. If he is not a PF pensioner or if he was not earlier a member of EPF and has not withdrawn the PF accumulations, he should be given PF also. Now for example, a person drawing Govt pension is not a PF pensioner and he should be covered since he is not a PF pensioner and was not a member of EPF earlier.

Just being aged 58 or above, you need not make him draw salary through voucher. You can include him among other employees under the same payroll. Voucher payments etc are made in order to avoid statutory contributions like those explained above. If you are straight forward why should you hide his employment by putting him under separate register etc?

Regarding Workmen Compensation Act, you are certainly liable to compensate him for any employment injury just like any other employee.

Madhu.T.K
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