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Neha Rastogi
hey,
we hire trainees on a stipend of Rs. 12,000 monthly.
they are hired for a period of 1 yr after which they are absorbed on company rolls.
is there a necessity to have their PF deducted/ deposited.
Please suggest
Regards,
neha

From India, New Delhi
malikjs
167

dear neha
trainees kept on stipend without approval of apprentice advisor are employee of organisationand all acts will apply to them.in this case their basic is 12000
so they may be excluded employee as basic is more than 6500.
tks
j s malik

From India, Delhi
ashishawasthi
Dear neha, Its depend on your company policy, whereas PF is applicable on CTC . regards, Ashish

ashishawasthi
Dear Sir, if they approved form Apprentice advisor then they are in deduction of PF. Ashish

Neha Rastogi
Thanks Mr. Malik and Ashish.

However, i would like to know-
  1. who is an apprentice advisor. My company is registered in Delhi and the trainees are in Goa.
  2. we deduct PF for regular employees whose basic is more than 6500 as well. so shud we be deducted pf for trainees as well.
  3. in this case shoud we deposit back dated PF?
  4. if the stipend is less than 10,000 is esi act also applicable?
  5. the trainees name do not figure in the payroll register. there is a separate sheet prepared for that and they do not get any pay slips.

Kindly clarify

Regards,
Neha

From India, New Delhi
malikjs
167

dear neha
as you have asked about apprentice advisor ,i dont know about delhi where is its office but i am in noida and our apprentice advisor sits in kanpur.
2.it is your internal matter as you are deducting PF, if salary is more than 6500.there is problem if you deduct there PF now ,it will be deducted on how much salary,because you have not done any bifurcation ,so you will now deduct on 6500 but when you will absorb them their basic should not be less than 6500 .
3 if stipend will be less than 10 k than ESI act will also be applicable.
4.as you have mentioned that trainees are not shown on payroll register and seprate sheet is made for them .now question comes how and where you are booking there amount in balance sheet.if you are not booking their salary in balance sheet and paying off the record than during PF/ESI inspection you will not be caught.however things are ofcourse illegal.
tks
j s malik

From India, Delhi
chauhantb
Dear All,
if in your standing order , mentioned that Trainee is excluded from PF. you are authorised to not deduct PF ...( SC Judgement) - Trainee is not liable for PF if provision is available in your standing order..:x
Regards/Tushar Chauhan

From India, Mumbai
Ramakrishnaab
1

Dear all
my salary is 12k per month, in our company dint give salary break ups, so in this situation i am eligible for pf or not, if no what is the pf sealing amount of pf deduction to eligible. can you share your ideas plz.........
regrads
rk

From India, Bangalore
RK Katri
2

Hi Neha

You must have certified standing orders from state government and under head classification of workmen,apprentice or trainees has been defined 'Apprentice or Trainee is a learner, who is receiving training either on payment of certain fee or grants or aids in allowance during the period of his training during a specified time as fixed by the management or as and when specified under the minimum wages act on such emoluments.An apprentice or trainee shall not be entitled to any kind of bonus or leave with wages and such emolument will not be subject to any deductions of PF & ESI. Further

Supreme court has held in the case of central aeronut & COco marketing & processing co .Ltd, mangalore that trainees were paid stipend during the period of training and they were engaged under the standing orders of the establishment and it was held that they were not employees within section 2(f) of te EPF act and similar law is applicable nder the ESI Act.

Pls go through your standing orders.

:wink:

From India, Ludhiana
rameshandra
Dear Neha,
Not necessary to deduct PF/ESI or anything to trainees.
They are not under the roles of the Company how can U deduct those. If they are in regular roles you can right deduct from thier salaries. Salary is different from Stipend. After completion of Traning period they comes under On the Roles. i think it is necessary for you. bye.....
With Regards
Ramesh Andra

From India, Hyderabad
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