We are planning to hire a couple of trainees on a fixed stipend, they are not apprenice. After training we may absorb some of them for regular employment. My question is, should we deduct PF and ESI from their stipend or not.
From India, Gurgaon
1From India, Gurgaon
If they are not apprentices engaged as per Apprentice Act, 1961, they will be covered by ESI and EPF. However, if you have a certified Standing Order and the Standing Orders provide for engaging trainees, then they shall be excluded from EPF. Still they will be covered by ESI as ESI Act has been amended to include trainees engaged as per provisions of Standing Orders.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls