Dear Sirs, We are hiring 'Trainees' and are governed by the Standing Orders as applicable in our industry. The following points require opinions as appended below:
1. We are paying a stipend of Rs 20,500 per month.
2. They are covered under ESIC.
3. The duration of training is 1 year.
Is there any circular regarding whether student-trainees are eligible for PF during the traineeship?
Thanks,
Hilary Joseph
From India, Jaipur
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1. We are paying a stipend of Rs 20,500 per month.
2. They are covered under ESIC.
3. The duration of training is 1 year.
Is there any circular regarding whether student-trainees are eligible for PF during the traineeship?
Thanks,
Hilary Joseph
From India, Jaipur
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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, i.e., they are not members of EPF right now, they can even be excluded as their remuneration is more than Rs 15,000.
From India, Kannur
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4526From India, Kannur
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Dear Sirs, Am sharing few attachments on the subject of Trainees who can be covered under EPFO. Need your valuable advise. Regards, Hilary Joseph
From India, Jaipur
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From India, Jaipur
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Dear Hilary, What do you want to establish? I am unable to read the attachments. I have already stated that with respect to trainees taken following the provisions in the Standing Order, you do not need to pay PF. However, if you have more trainees than regular employees and you treat them like regular employees by requesting them to do overtime, night duty, etc., then the situation will change.
From India, Kannur
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From India, Kannur
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Dear Hiljose, The issue is not about trainees under the Standing Orders but the 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. Conditions for Intern Engagement The conditions are: They should produce a letter from their Head of the Institution stating that they need to do the project or undergo an internship as part of their curriculum. They should go back to their respective colleges upon completion of the project/internship period to finish their course. If these conditions are met, you can accommodate interns, and if you pay a stipend, no PF is to be deducted from that. The same position applies in the case of ESI, I believe.
From India, Kannur
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From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF for NEEM Trainees.docx