Dear Experts,
I need clarification about EPF matters for interns.
What kind of declaration document has to be obtained from interns for non-deduction of EPF?
We are paying Rs 21,500/-, so we are exempted from ESI and EPF limits.
Thanks and Regards, D. Devarajan
From India, Chennai
Acknowledge(0)
Amend(0)
I need clarification about EPF matters for interns.
What kind of declaration document has to be obtained from interns for non-deduction of EPF?
We are paying Rs 21,500/-, so we are exempted from ESI and EPF limits.
Thanks and Regards, D. Devarajan
From India, Chennai
Acknowledge(0)Amend(0)
Hi,
Not sure whom you are referring to as interns.
As part of their curriculum, college final-year students will gain practical work exposure through internship training with organizations. These students will need to submit an authorization letter from their respective colleges for the internship training. For such interns, PF/ESI is not required, and there is no need to obtain any declarations from them.
From India, Madras
Acknowledge(0)Amend(0)
1015Not sure whom you are referring to as interns.
As part of their curriculum, college final-year students will gain practical work exposure through internship training with organizations. These students will need to submit an authorization letter from their respective colleges for the internship training. For such interns, PF/ESI is not required, and there is no need to obtain any declarations from them.
From India, Madras
Acknowledge(0)Amend(0)
Intern means a student undergoing some program of a university, doing project work or an internship as per the university curriculum. The period of such internship may extend to four or six months, and they will return to their campus once the internship is over. These interns are totally excluded from PF (and ESI). In support of this exclusion, you only need to produce a letter from their institution requesting permission for them to undertake the project or internship. The letter should clearly state that they are doing it as part of the curriculum.
If you pay them Rs 21,500 per month, then no document is required to exclude them from ESI. However, you can collect Form 11 (PF) which declares that they do not have any PF account.
Paying this amount to an intern may imply that you should be paying a regular employee around Rs 50,000 as a starting salary. Or is it that you mean a TRAINEE when you refer to an intern? In that case, the status will change, and the intern will qualify for various rights under different labor enactments such as Gratuity, annual leave, etc.
From India, Kannur
Acknowledge(0)Amend(0)
If you pay them Rs 21,500 per month, then no document is required to exclude them from ESI. However, you can collect Form 11 (PF) which declares that they do not have any PF account.
Paying this amount to an intern may imply that you should be paying a regular employee around Rs 50,000 as a starting salary. Or is it that you mean a TRAINEE when you refer to an intern? In that case, the status will change, and the intern will qualify for various rights under different labor enactments such as Gratuity, annual leave, etc.
From India, Kannur
Acknowledge(0)Amend(0)
After completion of graduation, they join our company as interns. We provide a stipend of Rs 21,500 per month without deductions for ESI and EPF, as they have exceeded the statutory limit of Rs 21,500/-. In this case, the employer must obtain a declaration from the interns for non-deduction of statutory EPF.
1) Is the declaration form mandatory?
2) Is there a specific form/format according to the EPFO?
From India, Chennai
Acknowledge(0)Amend(0)
1) Is the declaration form mandatory?
2) Is there a specific form/format according to the EPFO?
From India, Chennai
Acknowledge(0)Amend(0)
Hi, You need to term them as Trainees and not Intern. Trainees are like regular employees undergoing training for a specific period .
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
An intern is a developing professional who works at a company for a short time to gain entry-level experience and knowledge about a particular career field. Interns are most often college students, though other adults can also be interns, especially if they are changing careers or earning higher education degrees.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
You cannot call them interns because interns are those who are undergoing an internship as part of the curriculum of the university. You can only call those who have completed their program and come to gain some practical knowledge from your company as trainees. Trainees can be of two types: those engaged following the Apprentice Act and those engaged directly without following the Apprentice Act. The former may be of two types, undergoing training in designated trades and those under optional trades. These trainees are totally excluded from all labor acts. However, their stipend should be at par with the stipend fixed by the Central Government in this regard.
All trainees other than apprentices are just like regular employees. They should be given the coverage of all labor acts. It is true that since their salary (no need to say stipend since they are employees only) is above Rs 21,000, they will not come under ESI, EPF, and Bonus. However, their service will count for gratuity. They should be given leave as per the law in force. Whatever the work assigned, be it development or research, they are employees only.
From India, Kannur
Acknowledge(0)Amend(0)
All trainees other than apprentices are just like regular employees. They should be given the coverage of all labor acts. It is true that since their salary (no need to say stipend since they are employees only) is above Rs 21,000, they will not come under ESI, EPF, and Bonus. However, their service will count for gratuity. They should be given leave as per the law in force. Whatever the work assigned, be it development or research, they are employees only.
From India, Kannur
Acknowledge(0)Amend(0)
An intern is a trainee who has signed on with an organization for a period of 3 months to 6 months, and we are paying the monthly stipend.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
You need to term them as Trainees and not Interns. Trainees are like regular employees undergoing training for a specific period.
Reply: Yes, but in our case, they are paid interns for a specific period of 3-6 months.
From India, Chennai
Acknowledge(0)Amend(0)
Reply: Yes, but in our case, they are paid interns for a specific period of 3-6 months.
From India, Chennai
Acknowledge(0)Amend(0)
Hi,
Irrespective of the specific period, whatever name you may assign, such category of employment should be treated as regular employees only. I hope your organization is not running a training institute. The purpose behind their training is to utilize their service after the training period, which will be cost-effective compared to an experienced candidate in the same field, right? So, for the purpose of Gratuity and other benefits, their actual date of joining, right from the training period, should be considered.
From India, Madras
Acknowledge(0)Amend(0)
Irrespective of the specific period, whatever name you may assign, such category of employment should be treated as regular employees only. I hope your organization is not running a training institute. The purpose behind their training is to utilize their service after the training period, which will be cost-effective compared to an experienced candidate in the same field, right? So, for the purpose of Gratuity and other benefits, their actual date of joining, right from the training period, should be considered.
From India, Madras
Acknowledge(0)Amend(0)
In addition to what Lakshmi Narayan has put, let me also ask one question: will you not engage these 'interns' in night shifts? Will you not engage them in overtime? A trainee should not be engaged during nights, and you cannot allow him to do overtime work.
Anyway, the nomenclature used by your organization is wrong, and you should accept it rather than defending blindly. The answer you were seeking has been given to you, and the rest is your duty. There is no document to be kept to exclude an employee from the coverage of ESI if his salary is more than Rs 21,000, and you should collect Form 11 as support that he is not an existing member of PF. In case this 'intern' has had a PF account with his previous company, certainly, he should be given PF in your company also, even if you are paying him a 'stipend' of Rs 21,500. In such cases, he will declare his previous/existing PF account number or UAN in Form 11. No nomenclature can exclude him from the coverage of PF then.
From India, Kannur
Acknowledge(0)Amend(0)
Anyway, the nomenclature used by your organization is wrong, and you should accept it rather than defending blindly. The answer you were seeking has been given to you, and the rest is your duty. There is no document to be kept to exclude an employee from the coverage of ESI if his salary is more than Rs 21,000, and you should collect Form 11 as support that he is not an existing member of PF. In case this 'intern' has had a PF account with his previous company, certainly, he should be given PF in your company also, even if you are paying him a 'stipend' of Rs 21,500. In such cases, he will declare his previous/existing PF account number or UAN in Form 11. No nomenclature can exclude him from the coverage of PF then.
From India, Kannur
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
EPF Composite Declaration Form-F11_Blank. xls