Industrial Relations And Labour Laws
Director Of Private Ltd. Companies
Hr / Personnel Deptt.
Retd Human Resource Manager
Under EPF Delhi is not exempted area but please check whether the particular place in Delhi where the firm is situated is exempted under ESI.
Stipend paid to trainees OTHER THAN THOSE undergoing training under Aprrentice Act, 1961 attract EPF and ESI contribution. However there is a judgement withholding EPF Organisation from covering Trainees even other than Apprentices under EPF.
16th February 2008 From India, Kannur
Provident Fund is not deductable from STIPEND. The Provident Fund Scheme does not provide for deduction / contribution on & from STIPEND.
ESI Act provides for contribution / deductions from & on STIPEND.
Please also note that Consolidated Salary attracts the provisions of both PF & ESI - hence you are liable to to deduct and pay contribution to both PF & ESI.
17th February 2008 From India, Mumbai
Stipend is paid to Trainees olr Learners. Both Acts exemt Trainees from the provisions of the Act. However, if the Trainees are not proved to be trainees then they will get covered
1. Are you defining productivity measuresw?
2. Are you conducting theory classes for them
3. Are you maintaining record for these classes
4. Are you evaluating them?
5.Are you making them to come in shifts?
There are more questions. Refer to TISCO Judgement on this (Or is it TELCO?) This judgement clearly defines the rules to consider a Trainee as trainee.
I faced a problem in one company. Trainees were not covered under PF The PF inspector examined all records and even allowed that we make them to come in shifts. But when he examined the Productivity linked Bonus scheme, it covered all Trainees for calculating Productivity. That is it. We had no other option but to cover these employees. I also had another experience wher we could show all records of training. But we covered them under ESI Quoting this, PF authoritoes aslked us to cover them under PF. But we took a firm stand that every enforcement authority should be concerned about his area only and we could succeed in convincing them
18th February 2008 From India, Chennai
2, Delhi NCR I have no personal knowledge It must be applicable Just check your neighbours
3.Your HO is an establishment and all shops and establishments are covered under ESI in Delhi. Whetehr you factory is covered or not youe HO has to be covered
Does this answer your query?
20th February 2008 From India, Chennai
17th June 2008 From India, Delhi
17th June 2008 From India, Delhi
2nd August 2008 From United States, Roslindale
As far as I know that Salary and Stipend are 2 different things. On Salary which constitutes Basic, HRA, TA Etc PF and ESIC are applicable but on Stipend we need to know whether the person is a trainee, apprentice or consultant. If the person is trainee, apprentice then neither PF or ESIC is applicable as he is not an employee. However, in place of ESIC , workmen compensation act is applicable to trainee, Apprentice.
If the person is consultant giving services then TDS is deducted from consolidated salary.
2nd August 2008
i really appreciate your answer in this regard.
we are just giving designation as trainee to save ESI and PF and
paying them stipend of 10 k or 20 k.we are taking work as regular employee.it is misuse of act.
one company having total strength 300 and out of that 200 are appointed trainee.is it not misuse.
5th August 2009 From India, Delhi
5th August 2009 From India, Kannur