Sr. Hr Executive
Head - Outsourcing
Recruitment, Induction, Handling Grievances,
+1 Other

Dear Seniors,
Greetings of the day,
We are a pharma manufacturing company and we recruit trainees for various departments - manufacturing, R&D, maintenance, engg etc. We pay them stipend and they work as Trainee for a period of one year, post which based on their performance, they are absorbed or their training period is extended.
The query which i have is - do we have to deduct PF for these trainees? If Yes why?
Kindly address my query.
Thanking you,
Chitra A
PFA copy of Supreme Court Judgement regarding non-applicability of PF for Apprentices / Trainees engaged under the Company's Standing Orders (Certified or Model). Regards.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; )

Attached Files
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File Type: pdf SC - Central Aercanut&Coca - No PF for Trainee 2006.pdf (250.0 KB, 178 views)

Dear Chitra,
For trainees which are been hired and paid stipend are not entitled for deduction of PF amount from their monthly stipend.
The question of applicability of PF to Trainees arises only when you appoint them as "Trainee" ether under Apprentice Act or under the Standing Order of the Company.
S. G. Management Services
(PAN INDIA Consultant – Labour Law Compliance,
PF, ESI, P Tax, Benefit Management &
Dear Seniors,
Thanks for solving my query.
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