Which trainee are you talking about? A person who is in your company on probation for 6 months - do you call them trainees? If yes, PF is applicable. But for any person who is in your company for project training for his college, then only a stipend is to be paid.
FYI, trainees in the company do not fall under the category of employees, and stipend paid to them will not fall under wages (Rama Vilas Service Vs. R.P.F.C., 2000(1) LLJ (Mad.) 709).
Apprentices are excluded from the definition of an employee; hence, no PF deduction for apprentices should be made (Sundaram Industries Ltd Vs. R.P.F. Commissioner, Karnataka 1996 (III) L.L.J.(Supp) 260).
As per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, only those trainees who are engaged as apprentices following the provisions of the Apprentices Act, 1961, are exempted from PF. However, the Supreme Court verdict on the case of Campco permits all trainees, irrespective of whether they are under the Apprentices Act or not, to be exempted from EPF.
Regards,
Madhu.T.K
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute