Interns and Trainees: Do We Need to Deduct PF/ESIC for Them?

Hi, do we need to deduct PF/ESIC for interns or trainees joining our company?

Thank you.

Even if they come for 2-3 months of training, will the company only provide them compensation in terms of a stipend?

Confusion Regarding PF/ESIC Deductions for Trainees

Is this a confusion? Do we really need to deduct and contribute PF/ESIC for the trainees as well?

Regards,
Jayeeta

Hi, if you have engaged trainees under the Apprentice Act, then trainees are not covered under ESIC & PF, so you do not need to deduct or pay. If trainees are employed as per the provisions of the company's Standing Orders or HR policy, then trainees will be covered under ESIC and PF.

Regards,
Mallikarjuna R

No. But if verified, you should be able to show that they were there only to learn and did not perform any perennial or regular work. Please see the judgment of Regional Provident Fund Commissioner, Mangalore v. Central Arecanut & Coca Marketing and Processing Coop. Ltd., Mangalore. This is the guiding/landmark judgment on this point; even EPF also agrees with it.

Regards,

My humble request to querists in this forum is to browse for similar topics/discussions before writing a query. For the ready reference of querists in the current thread, I am providing a link to earlier discussions on the same or similar topic, as follows:

https://www.citehr.com/448975-pf-esi...-students.html