Pf Deduction On Stiphend - CiteHR
Ravi5554
Asst.manager -hr
Adoni Suguresh
Sr.executive (per & Adm)
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
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Respected all, we have appointed 30 people(fresh passout from collage) we are paying them remunaration as stiphend. Is pf is to be deducted on this? Regards naresh
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Dear Naresh ji, You can’t avoid PF. If you, then all the corporates and business houses will recruit the freshers only from campus in n-mass.
Dear Naresh ji,

I feel, you should first understand what is stipend? what is PF? What is employment and what is the relationship of employer and employee?

If you browse all those topics in this forum or on Google, you may get answer to all above. However, I am giving you some links with hope that you will get some idea. The links are as under:

https://www.google.com/url?q=https:/...xboIc66GblVeUw

https://www.google.com/url?q=https:/...veu7LD49eb3jHA

https://www.google.com/url?q=https:/...veu7LD49eb3jHA

https://www.google.com/url?q=https:/...lXbodq8hmP_3tg
If the persons are apprentices under the Apprentices Act or under standing orders of the Company they are not employees and the stipend paid them will not attract EPF. Varghese Mathew 09961266966
Dear Mr.Deshmukh,
You have not written clearly. You said that 30 peoples fresh passed out from colleges are appointed. But category of work you have not mentioned. You said that you are paying remuneration as stipend. This statement is wrong. Please see whether you want to pay them as Stipend, they must be appointed under Apprenticeship Act and to be paid stipend as stipulated by the Government for different trades and in such case the Provident Fund does not applicable. If you are appointed under other normal service condition and your payment as remuneration will definitely attract the Provident Fund. Whatever the payment you are making as salary, remuneration, honorarium, stipend, retainer ship shall have their own definition and depend upon category of service. You cannot call whatever you want. Each word shall have its own meaning within the purview of law.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant .
Dear Naresh,
Please refer Apprentice act in that clearly mentioned who will get stipend they are not eligible for the deductions.
This is a contractual as well as statutory obligation imposed under Section 13 of the Act that an
employer pays to every apprentice during the period of training such stipend at a rate not less than
the prescribed minimum rate and this rate will be specified in the contract. An employer shall pay
such stipend at such intervals and subject to such conditions as may be prescribed. However, an
apprentice shall not be paid on the basis of piece-work nor he shall take part in any output bonus or
other incentive scheme.
If the organisation does not wish to extend the benefit of PF on the grounds that the freshers are not employed they are given a training opportunity, you have to take an exemption in writing from the CPFC.
Seniors please comment if this is right.
Regards,
Dear Friends Please read para 2(f)(iv) of Employees Provident Fund Scheme 1952, and the explanation below that instead of beating the bush. Varghese Mathew 09961266966
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