Are We Required to Deduct Provident Fund for Trainees on Stipend? Seeking Clarification

Dear Seniors,

Greetings of the day. We are a pharmaceutical manufacturing company that recruits trainees for various departments such as manufacturing, R&D, maintenance, engineering, etc. We provide them with a stipend, and they work as trainees for a period of one year. Following this, based on their performance, they are either absorbed into the company or their training period is extended.

The query I have is - do we have to deduct Provident Fund (PF) for these trainees? If yes, could you please explain the reason for this deduction?

Kindly address my query.

Thank you.

Madam,

Please find attached a copy of the Supreme Court judgment regarding the non-applicability of PF for apprentices/trainees engaged under the Company's Standing Orders (Certified or Model).

Regards,
N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
Email: natraj@sakthimanagement.com

Dear Chitra,

Trainees who have been hired and are paid a stipend are not entitled to have the PF amount deducted from their monthly stipend.

Hi
The question of applicability of PF to Trainees arises only when you appoint them as "Trainee" ether under Apprentice Act or under the Standing Order of the Company.
Regards
P.S.Lakshmanan
S. G. Management Services
(PAN INDIA Consultant – Labour Law Compliance,
PF, ESI, P Tax, Benefit Management &
POSH COMPLIANCE
Kolkata