Trainee PF Exemption: Is There a Legal Clause for Consolidated Pay?

Hello Seniors,

Is there any clause or rule under any law to exempt a trainee from being covered for PF if we are paying a consolidated pay?

For this, you need the trainee to be covered under Certified Standing Orders or under the Apprentice Act.

Section 2(f) of the EPF Act defines an employee to include an apprentice, but, at the same time, makes an exclusion in the case of an apprentice engaged under the Apprentices Act or under the Standing Orders. Under the Model Standing Orders, an apprentice is described as a learner who is paid an allowance during the period of training.

Basically, trainees are not employees of the organization.

Dear Varma,

"To exempt a trainee from being covered for PF," please frame the question with due application of mind. You have not furnished details about Trainees Employed in your Establishment. Are you paying consolidated pay? If so, it means you are paying a salary. The designation is Trainee; however, the designation is immaterial for exclusion. Furthermore, you have not mentioned your Certified Standing Orders, including the clause about Trainees.

From the information furnished, Trainees need to be covered under EPF.