Is it mandatory to deduct PF or ESI on Stipend or consolidated salary?

Dear Sunita,
As far as I know that Salary and Stipend are 2 different things. On Salary which constitutes Basic, HRA, TA Etc PF and ESIC are applicable but on Stipend we need to know whether the person is a trainee, apprentice or consultant. If the person is trainee, apprentice then neither PF or ESIC is applicable as he is not an employee. However, in place of ESIC , workmen compensation act is applicable to trainee, Apprentice.
If the person is consultant giving services then TDS is deducted from consolidated salary.
regards,
Vinay

dear shiva
i really appreciate your answer in this regard.
we are just giving designation as trainee to save ESI and PF and
paying them stipend of 10 k or 20 k.we are taking work as regular employee.it is misuse of act.
one company having total strength 300 and out of that 200 are appointed trainee.is it not misuse.
regards
js malik

As Malikjs said, you can not have trainees just to avoid ESI and EPF. If you appoint trainees, there should be a curriculum designed to train them. There should be provisions in the Certified Standing Orders of the company to appoint trainees and the number of trainees shall be in a particular proportion to the regular employees. In the absence of these, the trainees will be regarded as employees who will enjoy all the benefits available to other employees of the company. As such, they are entitled to minimum wages fixed by the government as applicable to the scheduled employment, they will get leave as per law in force, they will get bonus and their service for the purpose of gratuity will be counted from the date on which he started his so called training.
Regards,
Madhu.T.K

kindly clarify if ESI needs to be deducted from registered apprentices stipend.

Apprentices engaged from RI centres following Apprentice Act will not be covered under ESI (also PF) and therefore, no deduction is to be made from their salary towards ESI