Dear all Please inform me that PF and ESIC deduct on probation period of employee? Probation employee and Trainee both are same ? CGM
From India, Raikot
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5From India, Raikot
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It depends on the contract of employment.
1. If you hire for a fixed period as a Trainee, then no deductions of PF and ESI apply; it is on a stipend basis, and you can deduct a professional fee.
2. If you consider someone as a probationary employee or Trainee, as per the Act, yes, you can deduct the PF and ESI.
You may also want to check the guidelines for Trainee employment or probationary employee employment because some companies have different policies for both cases.
Thanks,
Ajay Chhatwal
From India, Gurgaon
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1. If you hire for a fixed period as a Trainee, then no deductions of PF and ESI apply; it is on a stipend basis, and you can deduct a professional fee.
2. If you consider someone as a probationary employee or Trainee, as per the Act, yes, you can deduct the PF and ESI.
You may also want to check the guidelines for Trainee employment or probationary employee employment because some companies have different policies for both cases.
Thanks,
Ajay Chhatwal
From India, Gurgaon
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As Mr. Sanjeev clarified, P.F. and ESI are deductible from the first day of joining by an employee, which means even during probation, provided their wages are within the limit of Rs. 6,500/- p.m. or Rs. 10,000/- p.m., respectively. It is a statutory liability, and you cannot enter into a contract with the employee to avoid this liability.
Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]
From India, Mumbai
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I am trying to put it in a simple way: all statutory liabilities like ESI, EPF, and PTax are applicable to the Probationary and Trainee staff/workmen, subject to the limits prescribed under the respective acts. For example:
- **ESI:** ₹15,000/- p.m.
- **EPF:** ₹6,500/- p.m.
- **PTax [In Maharashtra]:**
- Up to ₹5,000/- earned gross salary/wages - NIL
- ₹5,001 to ₹10,000/- - ₹150/-
- Above ₹10,000/- - ₹200/- [In February, paid in March, it should be ₹300/-].
Regards,
Pramod Thakar
Pune
From India, Pune
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- **ESI:** ₹15,000/- p.m.
- **EPF:** ₹6,500/- p.m.
- **PTax [In Maharashtra]:**
- Up to ₹5,000/- earned gross salary/wages - NIL
- ₹5,001 to ₹10,000/- - ₹150/-
- Above ₹10,000/- - ₹200/- [In February, paid in March, it should be ₹300/-].
Regards,
Pramod Thakar
Pune
From India, Pune
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Dear Mr Sanjeev is absolutely right ESI and PF deduction does not have any relation with Probation it should be deducted from the date of joining.
From India, Delhi
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From India, Delhi
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Sub-probation P.F and ESI Deductions
In my view, employees under probation and trainees are not on par insofar as their eligibility for P.F and ESI contributions are concerned. The P.F Act clearly excludes apprentices and trainees appointed under the Apprentices Act and Standing Orders from being entitled to P.F since what they are paid is a stipend. As far as ESI is concerned, apprentices/trainees appointed under the Apprentices Act are not eligible, but trainees appointed under standing orders are made eligible by a recent amendment.
Regards,
B. Saikumar
HR & labor Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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In my view, employees under probation and trainees are not on par insofar as their eligibility for P.F and ESI contributions are concerned. The P.F Act clearly excludes apprentices and trainees appointed under the Apprentices Act and Standing Orders from being entitled to P.F since what they are paid is a stipend. As far as ESI is concerned, apprentices/trainees appointed under the Apprentices Act are not eligible, but trainees appointed under standing orders are made eligible by a recent amendment.
Regards,
B. Saikumar
HR & labor Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
[Phone Number Removed For Privacy Reasons]
From India, Mumbai
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Employees on probation are neither trainees and nor apprentices. They are at par with rest of the employees of the organization.
From India, Mumbai
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From India, Mumbai
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Dear sir, an newly join employee under the trainee catagory ESI should compulsory as per law in same cases no need to deduct PFafter the probatation period PF is compulsory Thanks V.Amuthan
From India, Karur
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From India, Karur
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In my opinion, a reading of the EPF Act states that trainees hired under the provisions of approved Standing Orders of the company will be exempt from payment of EPF. For example, if an employee is hired as a trainee for a 2-year period, during which one year is under training and the second year is on probation as per the provisions in the Standing Orders of the Company, then they are exempt from EPF for the first two years. If they are not covered under the provisions of the Standing Order, then they are entitled to PF. The coverage here would mean that you have to explicitly state in the appointment order that they are hired as per the provisions of the Standing Orders of the company.
ESI is applicable from day one for all employees, including trainees under any category, and contract employees subject to the wage ceiling of Rs. 15,000 per month.
Regards,
M.V. KANNAN
From India, Madras
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ESI is applicable from day one for all employees, including trainees under any category, and contract employees subject to the wage ceiling of Rs. 15,000 per month.
Regards,
M.V. KANNAN
From India, Madras
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