PF & ESI On Monthly Stipend

We have engaged apprentices under the apprenticeship act 1961. Now we are planning to engage Graduate Engineer/Diploma Engineer Trainee and will pay them a fixed monthly compensation in the name of stipend. Will the stipend attract PF & ESI liability.

1) If you are engaging them under under the guidance of Director / Advisor apprenticeship act 1961 then only you can pay them stipend.
2) If your standing orders acts has the provision to accomaodate engineers/diploma under stipend then only you can pay them stipend.
If you are paying valid/legal stipend then no need to pay PF ESI contributions
In case query please do call
Best Regards,
Prashant - 9850401160