sir, can we deduct PF & ESI on stipend and paid by us to the trainees . should we pay bouns to them Thnaks & regards Mukesh Kumar
From India, New Delhi
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From India, New Delhi
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Dear Mr.Mukesh, Yes PF and ESI is applicable for trainees and also for part time workers. Yes, if bonus is paid to all. Regard’s Shaikh
From India, Bhubaneswar
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138From India, Bhubaneswar
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No, if the candidate is there in a company only for the internship, then they are not eligible for PF, TDS, ESI deductions. If they are on the job and serving their probation period, and after the probation, if they are turned into a permanent employee, then they are eligible for PF, ESI, etc.
Also, every employee is eligible for a bonus if they have completed their 30 days of work in that year.
From India, Delhi
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Also, every employee is eligible for a bonus if they have completed their 30 days of work in that year.
From India, Delhi
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Dear Mr.Dipti, PF and ESI are not only for permanent employee. I had personal experience regarding the above mention query by Mr.Mukesh. Regard’s Shaikh
From India, Bhubaneswar
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From India, Bhubaneswar
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Hi Abedeen,
First of all, I am not a Mr. I am Ms. Dipti. Secondly, I have also experienced the same. Until the probation and trainee period, no PF is deducted because there is no assurance of the candidate whether they are going to stay in the company or not after their internship. You can also have a look on Google for more information.
From India, Delhi
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First of all, I am not a Mr. I am Ms. Dipti. Secondly, I have also experienced the same. Until the probation and trainee period, no PF is deducted because there is no assurance of the candidate whether they are going to stay in the company or not after their internship. You can also have a look on Google for more information.
From India, Delhi
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Dear Ms. Dipti,
I am extremely sorry for that. In my previous company, it was a new setup, and we didn't deduct PF for trainees and associates because they are under probation. During the inspection, we were asked to do so. Now, they have sent a letter under section 7A to explain why and on what basis we are not deducting PF for them. After that, we used to deduct for them, and it is applicable for part-time employees also.
Hope you understand.
Regards,
Shaikh
From India, Bhubaneswar
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I am extremely sorry for that. In my previous company, it was a new setup, and we didn't deduct PF for trainees and associates because they are under probation. During the inspection, we were asked to do so. Now, they have sent a letter under section 7A to explain why and on what basis we are not deducting PF for them. After that, we used to deduct for them, and it is applicable for part-time employees also.
Hope you understand.
Regards,
Shaikh
From India, Bhubaneswar
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Dear Ms. Dipti,
Based on my experience, stipend holders are not eligible for PF because stipend and salary/wages are different. However, trainees are eligible for a bonus after working for 30 days in a particular year.
Thank you.
Sjjagriti
From India, Calcutta
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Based on my experience, stipend holders are not eligible for PF because stipend and salary/wages are different. However, trainees are eligible for a bonus after working for 30 days in a particular year.
Thank you.
Sjjagriti
From India, Calcutta
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Only the Apprentice Trainee who is employed as per Apprentice Act 1961 is exempted from ESI & PF deduction. If the trainee is not employed under this act, then it is mandatory to deduct ESI & PF from the stipend/salary paid to such trainee.
From India, Delhi
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From India, Delhi
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Kindly refer to the definition of an Employee under the PF Act, Section 2(f), clause ii, which states:
ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;
If you have engaged such a trainee as per your standing order or under the Apprentices Act, they will be exempt from the PF Act.
However, ESIC has amended its definition of an employee through an amendment dated 24th May 2010, applicable from 1st June 2010. According to this definition, trainees/apprentices engaged under either the standing orders or the Apprentices Act will be covered by the ESI Act.
From India, Delhi
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ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;
If you have engaged such a trainee as per your standing order or under the Apprentices Act, they will be exempt from the PF Act.
However, ESIC has amended its definition of an employee through an amendment dated 24th May 2010, applicable from 1st June 2010. According to this definition, trainees/apprentices engaged under either the standing orders or the Apprentices Act will be covered by the ESI Act.
From India, Delhi
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