What should be the salary deductions for Apprentices?

Kalika Pande
We are hiring 3 Apprentices for our organization. Should we deduct PF/ESIC from the Stipend?
Dinesh Divekar
Dear Kalika,
If you have employed the Apprentices under the provisions of Apprentice Act of your state then the only deduction is ESI.
Thanks,
Dinesh Divekar
jpratap
Please keep in mind that the deductions under ESI/PF Acts would depend on the type of apprentices you are engaging. If your are engaging them under the Apprenticeship Act, 1961 or as per Standing Orders of the Establishment, they would not fit into the definition of “employee” under per section 2(9)(iii) of the ESI Act, 1948 and also under section 2(e) of the PF Act, 1952 and, therefore, you may not be able to make these deductions also.
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