Worried About PF Deductions as a College Intern? Seeking Advice on Future Implications

Hi all, I have a query regarding the PF deduction for a 6-month intern. I joined an organization as an intern through the training and placement cell of my college during my period of study. After the first month, it was found in the payslip that PF is being deducted, even though I am an intern through college placement. Will this be an issue for future employment? Is there a process through which I can complain to EPFO to remove the PF account? I am worried about this. Any advice or suggestions from the community will be greatly appreciated.

When I asked HR about this, I was told that it is not going to be an issue.

I suggest that you review the signed contract/agreement between you and the company. If your contract is permanent, then you are entitled to all statutory compliance deductions from both sides. If your company is providing you with a PF facility, it means that they have hired you as a permanent employee. Don't worry, it seems that everything is in accordance with the law. The source of employment does not matter; what matters is the agreement between you and the company.

Thank you.

As per the law, an intern is considered a student, and an internship is part of the curriculum for training; therefore, they are excluded from PF and ESI. However, if the employer chooses to extend these benefits to interns, what is wrong with that? You should be pleased that the employer is contributing to the PF. You can use the same PF Number (Universal Account Number or UAN) when you join an organization after completing your studies. This will not create any problems in your future employment.

Internship and PF Deduction

An intern placed through a college placement is considered a normal employee in most companies. The internships that are exempt from PF are either through the Apprentices Act or under NEEM. Since you are not under either, the company is right in deducting PF and crediting it to your account.

The fact that you have a PF account is proof that you went through the employment/internship. It is a good thing; there is no reason to hide it or pretend it never happened.

Interns and EPF Coverage

Interns are students from the college, and the training given is part of their curriculum. They are not trainees in any way; therefore, there is no question of coverage under any EPF. As stated in my earlier reply, if the employer is paying a stipend and contributing to PF, it is a benefit offered to the intern and not mandated by any law.

If they receive a salary from the company (by any name) and they are not trainees as defined by the standing orders, then they are considered employees in the eyes of the law. It appears that you have a differing opinion, so I would appreciate it if you could clarify and explain why you believe they are not employees (and consequently exempt from mandatory PF). Thank you.

EPFO Notification on Intern Stipends

See, the thing is that there exists a notification from the EPFO itself which states that interns are not employees and their stipend should not be considered as a normal stipend paid to other trainees. Therefore, there is no need to contribute PF on such stipends. Please remember that we engage interns not to perform any tasks but as part of our social commitments. It is in order to establish that there does not exist any master-servant relationship that we collect a letter from the institution requesting us to permit a few of their students to do projects/internships in our companies.

I am trying to trace the notification from the EPFO and will post it when I get it.

Really, very good interaction and very knowledgeable. Thanks to Madhu sir for sharing the notification.

True, interns, trainees, and apprentices are not covered under statutory obligations like ESI and PF. However, the company covered the intern under EPFO, but it is not known whether they deducted employee contributions or bore both.

One thing is clear: if the company personnel respond and inform the motive behind coverage, it will be very useful for our fraternity.

There is nothing to worry about as the employer has deposited your PF. It's a good scheme, but practically, if an intern is hired through college, then PF and ESIC are not applicable. In case no college is involved, then EPF and ESIC are applicable.