Are Trainees Earning Under Rs 10,000 Eligible for ESIC? Seeking Your Insights

Hi all,

I would like to get views on the application of ESIC on trainees who are as good as apprentices, but their designation is Trainee, and they are receiving a stipend of less than Rs 10,000 per month.

Regards,
Tikam - Pune
tikamindia@rediffmail.com

Dear Member,

Any person engaged as an apprentice under the Apprentice Act is not covered under the ESI Act. However, any person appointed as a company apprentice/trainee will be covered under the ESI, and they will fall under the definition of "workman" under the ESI Act.

Regards, Murugavel B. Chennai

Hi Tekam,

If your company has a certified standing order and you have classified trainee employees also in the employee category of the standing order, then you can appoint a trainee in your process. However, the total number of trainee employees enrolled should not exceed the norms of the Apprentices Act 1961. Under this procedure, those employees (trainees) recruited by the company shall be treated as exempt employees under the purview of the E.S.I. Act 1948, E.P.F. & M.P. Act 1952, and no contribution liability shall be attracted on their stipend.

Regards,
S. Singh