Are Daily Wage Workers and Trainees Eligible for PF and ESI Under the Shops and Establishments Act?

Dear Sir,

My company comes under the Shops and Establishments Act. I have a clarification. We have around 60 staff (Qualified) and around 40 staff are like Daily Wages and Trainees. Are PF and ESI eligible even for temporary staff like daily wages and trainees? Is the company liable to pay for only 60 staff? Can you please clarify this for me?

Regards,
Karthik

Dear Kartik,

As per the PF & ESI Act, you have to pay PF & ESI contributions for all. Please review the definitions of the said Acts.

Sagar.

Dear PF and ESI Act is applicable to daily wage earners and temporary workers. However, if trainees are hired through the apprentice act or under the provision of certified standing orders, then ESI and PF contributions are not required for trainees.

Regards,
J. S. Malik