PF to the Trainees - We are paying stipend @ Rs 20500/- per month

Dear Sirs,

We are hiring 'Trainees' and are governed by the Standing Orders as applicable in our Industry. The following points requires opinion as appended below :

1. We are paying stipend @ Rs 20500/- per month.
2. They are covered under ESCI.
3. Duration of training 01 year

Is there any circular regarding student-trainees are eligible for PF during the traineeship.

Thanks
Hilary Joseph

Trainees under the Standing Order (Certified standing order only) are excluded from the coverage of PF. Moreover, if these trainees are taking up their first employment with you, ie, they were not members of EPF right now, they can even be excluded as their remuneration is more than Rs 15000.

Dear Sir,

Thank you sir for sharing your input on the subject.

Dear Sirs,

Am sharing few attachments on the subject of Trainees who can be covered under EPFO. Need your valuable advise.

Regards,
Hilary Joseph

Dear Hilary, what do you want to establish? I am unable to read the attachments. I have already said that in respect of trainees taken following the provisions in the Standing Order, you need not pay PF. But if you have more number of trainees than the regular employees and you have been engaging them like any regular employees like asking to do over time, do night duty etc then the situation will change.

Dear Sir,

Agreed in principle but the consultants have confused us by sharing this attachment. Sir if you can share your mail id I can forward those attachment and please guide.

Regards,
Hilary

Please send it to [Login to view] or [Login to view]. Let me see

Madhu T K

Dear Sir,

Good morning!!!

Have shared the details on your mail IDs.

Regards,
Hilary Joseph

Dear Hiljose,
The issue is not about trainees under the Standing Orders but engagement of interns, right? The EPFO has already clarified that no employee employer relationship exists between an intern and the company. As such they are not covered by EPF and no contribution needs to be deducted from them. The conditions are: They should produce a letter from their Head of the Institution that they need to do the project or undergo internship as part of their curriculum. They should go back to their respective colleges on completion of the project/ internship period to complete their course. If these are established, you can accommodate interns and if you pay stipend, no PF is to be deducted from that. In the case of ESI also same is the position, I believe.