Stipend is an allowance paid to trainees, whereas consolidated salary means a salary without any breakdown such as Basic salary, Dearness Allowance, House Rent Allowance, etc. Stipend is also a consolidated sum as there will not be any breakdown for the same. Stipend is a training cost whereas a consolidated salary is a part of operational cost. Stipend will not attract EPF and ESI contributions, but Salary, even if it is a consolidated amount, will attract EPF and ESI if the respective employee is covered. However, stipend paid to trainees other than Apprentices will attract EPF and ESI.
Regards,
Madhu.T.K