We are planning to hire a couple of trainees on a fixed stipend; they are not apprentices. After training, we may absorb some of them for regular employment. My question is, should we deduct PF and ESI from their stipend or not.
If they are not apprentices engaged as per the Apprentice Act, 1961, they will be covered by ESI and EPF. However, if you have certified Standing Orders and the Standing Orders provide for engaging trainees, then they shall be excluded from EPF. Still, they will be covered by ESI as the ESI Act has been amended to include trainees engaged as per the provisions of Standing Orders.
Please read the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, at least roughly, before posting.
Regards,
Madhu.T.K
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