When Are Trainees Eligible for Stipends in Manufacturing? Seeking Guidance and References

nestor_mascarenhas
We are a manufacturing firm, and I would like to know under what circumstances the trainees are eligible for payment of a stipend. How much stipend can be given to them? Also, if possible, please provide me with a reference for your answer since I will be required to present the reference to my seniors.

Warm Regards,
Nestor Mascarenhas.
Madhu.T.K
Wages and Benefits for Trainees Other Than Apprentices

Trainees, other than apprentices engaged through the RI centers following the provisions of the Apprentice Act, should be paid wages as per the minimum wages applicable to your industry. Such trainees should also be given ESI, PF, bonus, and other benefits like leave and overtime allowances. Their period of service as trainees should be counted for the purpose of deciding and calculating the amount of gratuity in case they leave your organization after 5 years, including this training period. In case your establishment has certified standing orders, then their service conditions shall be as per the standing orders. Such trainees are excluded from the coverage of EPF, but they are to be given ESI.

Stipend for Apprentices Under the Apprentice Act

For trainees taken as apprentices under the Apprentice Act, the stipend is notified by the Government of India. Please follow those rates.

Regards,
Madhu.T.K
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