We are planning to hire a couple of trainees on a fixed stipend; they are not apprentices. After training, we may absorb some of them for regular employment. My question is, should we deduct PF and ESI from their stipend or not.
From India, Gurgaon
Acknowledge(0)
Amend(0)
1From India, Gurgaon
Acknowledge(0)Amend(0)
If they are not apprentices engaged as per the Apprentice Act, 1961, they will be covered by ESI and EPF. However, if you have certified Standing Orders and the Standing Orders provide for engaging trainees, then they shall be excluded from EPF. Still, they will be covered by ESI as the ESI Act has been amended to include trainees engaged as per the provisions of Standing Orders.
Regards,
Madhu T.K.
From India, Kannur
Acknowledge(0)Amend(0)
Regards,
Madhu T.K.
From India, Kannur
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
HC All - Trainees not covered for PF -2010.pdf
SALARY with out PF Deduction.xls
PF for NEEM Trainees.docx