Trainees in the Hotel Industry: Is Provident Fund Really Not Applicable?

Is PF not applicable for trainees, especially in the hotel line? Kindly provide some information.

Hi,

Depending on the categories they are hired for, most of the time hotels hire trainees from Management Training institutes on a trainee basis, and a stipend is paid to them. If the company is paying a stipend to the employee, then PF contribution is not applicable to the same.

I do not agree with Mr. Manoj. As per Section 2(f) of the EPF Act 1952, the definition of an excluded employee is an apprentice who is appointed under the Indian Apprentice Act, making them an excluded employee. Additionally, if an employee's basic wages exceed Rs 15,000 wef 1.9.14 or Rs 6,500 before 1.9.14 per month, they are also considered an excluded employee.

Therefore, there is no provision for the exclusion of trainees in the Act. All trainees receiving a stipend, salary, wages, or anything else are eligible for EPF membership.

Regards, Vipin Gupta EPF Office