Is It Legal for SBI to Exclude PF for Management Trainees on Contract? Let's Discuss

Management Trainee Role at SBI

One of my friends graduated from a Tier 1 B-school and joined SBI as a "Management Trainee" in a contract role, extendable up to 5 years. The PSU is not providing any PF, medical, etc., benefits in this role, which otherwise would apply to a "permanent employee." While not giving other benefits is understandable, is the non-allocation of PF in the CTC legal?

PF Eligibility for Contract Employees

From what I understand, a PSU is required to ensure that any employee, even if under a contractor, is required to verify PF payments. Then why is a direct contract employee not eligible?

If, in the terms of the contract, the PF Gross (Basic + DA) is more than 15,000/- per month and it is the candidate's first-time employment, the candidate will not be eligible for PF membership. Otherwise, if the PF Gross is 15,000/- or below, the candidate is eligible for PF.

S K Bandyopadhyay (Howrah, WB)

[Login to view]