Are ESI, PF, and P.T Deductions Necessary for Student Stipends During Project Work?

Hi, I would like to know whether we should deduct ESI, PF, and P.T from the stipend payable to a student who is attending project work in a company. If the stipend does attract these deductions, under which category can we pay the amount without any deductions? Please advise me.

Regards,
Vishwanath

Stipend Deductions for Students

Don't deduct ESIC, EPF, and P-Tax from their stipend amount as they are not applicable for this kind of student. ESIC, EPF, and P-Tax are deducted from wages/salary, but the stipend amount is never referred to as wage/salary.

According to my understanding, no, you cannot deduct ESI, PF, and PT from a stipend. Understanding Stipend and Deductions

"Stipend" would be considered a payment made to "trainees" and would be governed by the "Apprenticeship Act 1961." Please review this Act, which is available on the internet at various sources, including www.citehr.com.

"Stipend" is not "salary," and hence, I believe you cannot treat it the same way as you would "salaried employees."

Regards,
Ukmitra

Hi Divekar, I have gone through the link. Thank you. I came across a discussion regarding the deduction of P.T on a stipend. Can you please clarify this? Since a stipend is not considered a wage or salary, do we have to pay P.T on it?

Regards, Vishwanath

Minimum and Maximum Stipend for Trainees

What is the minimum and maximum stipend we can pay to any trainee? As mentioned, it's paid for the short term. What's that term? I mean, for how many months can we pay a stipend to any trainee?