Hi, As per Apprentice Act 1961, a graduate or a post graduate who does a training in your organization for completion of his studies is a trainee and organization pays stipned to them to fulfill there basic needs, in this case there is no need to dedcut PF & ESI but if an employee is hired and trained as per company requirement and then finally placed in the respective department, PF needs to be deducted from his monthly remuneration. Thanks and regards, Preeti