Trainee Stipend Dilemma: Is It Fair to Deduct HRA When Housing Is Provided?

If someone is selected as a trainee and is receiving a stipend of, say, Rs. 15,000, and is provided with a quarter on the factory premises, can HRA be deducted from this stipend?

HRA can be deducted from the stipend paid to the apprentice.

---
Thank you for using our service! If you have any further questions, feel free to ask.

What if the training period is for 2 years with a monthly stipend of Rs. 15,000 for the first year and Rs. 16,000 for the second year? The designation is as an executive trainee, not as an apprentice. Are there any laws applicable to this scenario? Kindly provide references.

There is no law governing these matters as regards non-Apprentice Act trainees are concerned. It depends on the policy of the company, the general rule being any company facility like accommodation or transport is chargeable.

---
I have corrected the spelling and grammar errors in the text provided. I have also ensured proper paragraph formatting with a single line break between paragraphs. If you need further assistance, feel free to ask.

Dear Friend,

You are advised to follow the rules or standing order of your establishment, if any. If the appointment condition of the trainee is to pay only a stipend, then you are free to realize the house rent from his stipend. In the absence of clarity, it is always good to take written authorization from the trainee for deduction to avoid future complications.

The trainee needs to read his appointment order in full. What is the stipend? What are the deductions set out from his stipend? Per se, there is nothing wrong in deducting rent from the stipend for accommodation provided (not HRA) unless free accommodation is promised in the appointment order.

Please check what the standing order of the company says about Trainees. If no certified standing orders are in place for the company, then such trainees cannot be paid a stipend. Stipends may only be paid to Apprentices under the Government Apprentice Act and certified standing orders. If you are receiving a stipend as per the above, it does not include the House Rent Allowance (HRA) component. However, if the management has a policy to deduct a portion of the stipend for accommodation, they can do so.

Mangesh Wakodkar
Aurangabad