Dear Friends,
As I know, EPF is applicable to all employees drawing salary less than Rs 6,500/-.
Recently we have recruited one Diploma Engineer Trainee with a consolidated stipend of Rs 11,000/- per month for six months, thereafter based on his performance he will be absorbed. My management says there is no need to deduct EPF for this person as he is only a trainee. it is pertinent to mention here that PF is deducted for all staff of our company irrespective of their salary.
When I contested them that only the trainees who are taken under Apprentice Act are exempted from EPF, my boss says I am wrong.
Can any one of you with your vide experience be able to clarify with authority whether the trainees drawing stipend are eligible for EPF or not.
Regards,
R.Rajan
As I know, EPF is applicable to all employees drawing salary less than Rs 6,500/-.
Recently we have recruited one Diploma Engineer Trainee with a consolidated stipend of Rs 11,000/- per month for six months, thereafter based on his performance he will be absorbed. My management says there is no need to deduct EPF for this person as he is only a trainee. it is pertinent to mention here that PF is deducted for all staff of our company irrespective of their salary.
When I contested them that only the trainees who are taken under Apprentice Act are exempted from EPF, my boss says I am wrong.
Can any one of you with your vide experience be able to clarify with authority whether the trainees drawing stipend are eligible for EPF or not.
Regards,
R.Rajan