Trainee Employment: Are Employers Required to Contribute to PF or ESI Funds?

If the employer employs any person as a trainee for 12 months or more in his organization, is he bound to contribute to PF or ESI fund? Shall the employer deduct any contribution from his trainee for PF or ESI fund?

JOY KUMAR DE

Hi,

As per norms, both PF and ESI should be deducted from the date the employee joins an establishment. However, if the trainees are given a stipend, then PF need not be deducted from them, but ESI should still be deducted.

Cheers,
Sowmya

Hi Joy,

Sowmya is absolutely correct. If one is working as a trainee and receiving a stipend, they will not be covered under the PF or ESI Act.

Regards,
Amit Seth

Dear Joy,

Greetings!

I agree with Mr. Amit. If anyone is working as a trainee and receiving a stipend, they will not be covered under the PF or ESI Act.

Regards,
John N

If the employee is a management trainee and receiving a monthly stipend of 4000/-, will PF and ESI not be applicable to him?

Best regards,
Animesh

Hi Joy,

I feel the trainees have to be covered under both ESI and PF unless they are appointed under the Apprentices Act.

Regards,
Kannan

What is the procedure regarding trainees for PF Act in the hotel industry? Also, how long should a trainee be trained?

Dear Joy,

Your question is very interesting, and I want to clarify that a "Trainee who receives a salary categorized under the head of Stipend is not eligible for PF deduction. However, ESI will be deducted from the very first day. If a Trainee receives a salary categorized under the head of Basic, HRA, etc., in this case, they are entitled to PF and ESI deductions from the very first day."

For any further queries, you can also contact me directly on my mobile at 9214000855.

Regards,
Yogendra Raj Singh