Is PF Deducted from Trainee Employees? Seeking Clarity on Employee Benefits

Should I know whether PF is deducted from trainee employees?

Thanks in advance.

My understanding is that you may have to deduct PF from his basic+DA and contribute towards the employee's PF.

Dear Sir,

If a trainee is hired as per the provisions of the certified standing order or under the Apprentices Act, then ESI and PF will not be deducted; otherwise, it will be deducted.

Regards,
JS Malik

No, you can't deduct PF from trainees' salary. Trainees are not entitled to PF benefits anymore. It's a Supreme Court order.

Regards, Sidharth

Trainee and apprentice are two separate things. An apprentice can't be an employee, but a trainee himself is an employee of the organization. In fact, all the hiring policies of the organization comply with the company's prescribed standing orders.

Regards,
Sidharth

Dear Jayesh,

If you have taken them into your company payroll, then you need to deduct contributions.

Dear All,

Kindly advise if we can deduct P.F. on the total Basic+D.A. i.e., more than Rs. 6500/-? If we deduct P.F. on the total Basic+D.A (more than Rs. 6500/-), what type of benefit or loss would it entail for the employee as well as the employer?

Regards,
Rakesh Dubey

Hi,

As per the Apprentice Act of 1961, a graduate or a postgraduate who undergoes training in your organization to complete their studies is considered a trainee. The organization provides a stipend to them to meet their basic needs. In this scenario, there is no requirement to deduct PF & ESI. However, if an individual is hired as an employee and then trained based on the company's specifications before being placed in a particular department, PF deductions should be made from their monthly remuneration.

Thanks and regards,
Preeti

If the employee is on the payroll and is not paid on a daily basis via vouchers, then PF is required to be deducted.

I was working in a Faridabad (Haryana)-based partnership firm for the past 17 years. Due to my family problems, I left my service after completing 17 years on 03.11.2006. Because of my poor financial situation, I submitted my PF withdrawal form duly completed in all respects to the concerned department in Faridabad. After 28 days, on 11.05.2007, a cheque was sent directly to my bank account for Rs.202042/- without a covering letter or calculation sheet. However, the amount was less than my contributed amount as per my calculation.

I made several efforts to recover the balance of my contributed money. Eventually, I realized that interest from 01.03.2006 to 11.05.2007 was not remitted to me. I collected some documents from my employer as required by the department over time. After nine months of efforts, on 08.02.2008, another cheque of Rs.17638/- was sent to my bank account. Additionally, Rs.3217/- is still receivable by me. However, to this date, I have not received my balance money. Despite writing numerous registered and unregistered letters to the department, I have not received a single reply.

If your form is registered with the Apprentice Office in Bombay, you cannot deduct PF and ESIC. If your form is not registered with the above office, you have to deduct PF and ESIC.

Praveen Singh

Hello, I am an undersigned employee of Tiger Steel Engg (I) Pvt Ltd in Navi-Mumbai, holding the position of Design Engineer. I joined here on 21st August 2008, but I have not yet received any PF number from the company. PF contributions are regularly deducted from my CTC. When I asked them for the PF number, they informed me that it requires one year to obtain it. Is this correct? Please assist me in understanding what is going wrong here.

Manoj N. Zade, Design Engineer, Tiger Steel Engg (I) Pvt Ltd, Navi-Mumbai
Mobile: 09975055224