If the employer employs any person as a trainee for 12 months or more in his organization, is he bound to contribute to PF or ESI fund? Shall the employer deduct any contribution from his trainee for PF or ESI fund?

JOY KUMAR DE

From India, Calcutta
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Hi,

As per norms, both PF and ESI should be deducted from the date the employee joins an establishment. However, if the trainees are given a stipend, then PF need not be deducted from them, but ESI should still be deducted.

Cheers,
Sowmya

From India, Madras
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Hi Joy.. Sowmya has said very true.. that if one is working as Trainee and getting stipend then he will not be covered under PF or ESI Act. Regards, Amit Seth.
From India, Ahmadabad
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Dear Joy, Greetings! I agree vth Mr Amit. If any one is working as Trainee and getting stipend then he will not be covered under PF or ESI Act. Rgds, John N
From India, Madras
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if the employee is a management trainee and getting a montly stipend of 4000/-, will then pf and esi not applicable on him. Rgds Animesh
From India, Vadodara
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Hi Joy I feel the trainees have to be covered under both esi & pf unless they are appointed under the Apprentices Act. regards Kannan
From India, Bangalore
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What Is The Procedure Regarding Tranee For P.f Act In The Hotel Industry ? And How Long Tranee Should Be Trainee
From India, Pune
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Dear Joy,

Your question is very interesting, and I want to clarify that a "Trainee who receives a salary categorized under the head of Stipend is not eligible for PF deduction. However, ESI will be deducted from the very first day. If a Trainee receives a salary categorized under the head of Basic, HRA, etc., in this case, they are entitled to PF and ESI deductions from the very first day."

For any further queries, you can also contact me directly on my mobile at 9214000855.

Regards,
Yogendra Raj Singh

From United States, Plymouth
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