Respected all, we have appointed 30 people(fresh passout from collage) we are paying them remunaration as stiphend. Is pf is to be deducted on this? Regards naresh
From India, Pune
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5From India, Pune
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Dear Naresh ji, You can’t avoid PF. If you, then all the corporates and business houses will recruit the freshers only from campus in n-mass.
From India, Mumbai
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From India, Mumbai
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Dear Naresh ji,
I feel you should first understand what a stipend is, what PF is, what employment entails, and the relationship between an employer and an employee.
If you browse all those topics in this forum or on Google, you may get answers to all the above. However, I am providing you with some links with the hope that you will gain some insight. The links are as follows:
- [Link 1](https://www.google.com/url?q=https://www.citehr.com/448524-questions-asked-direcotor-pf-esi.html&sa=U&ei=JAKwU9SxII61uASjn YHIBQ&ved=0CAYQFjAA&client=interna l-uds-cse&usg=AFQjCNEUP3TpThNTu2F_xboIc66GblVeUw )
- [Link 2](https://www.google.com/url?q=https://www.citehr.com/447790-pf-contribution-trainee.html&sa=U&ei=JAKwU9SxII61u ASjnYHIBQ&ved=0CAoQFjAC&client=int ernal-uds-cse&usg=AFQjCNHHz2dulPTVsnCkveu7LD49eb3jHA )
- [Link 3](https://www.google.com/url?q=https://www.citehr.com/447790-pf-contribution-trainee.html&sa=U&ei=JAKwU9SxII61u ASjnYHIBQ&ved=0CAoQFjAC&client=int ernal-uds-cse&usg=AFQjCNHHz2dulPTVsnCkveu7LD49eb3jHA )
- [Link 4](https://www.google.com/url?q=https://www.citehr.com/448975-pf-esi-interns-projec-work-students.html&sa=U&ei=JAKwU9SxII61 uASjnYHIBQ&ved=0CA4QFjAE&client=in ternal-uds-cse&usg=AFQjCNEgagqUCyXOoRZtlXbodq8hmP_3tg )
From India, Mumbai
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I feel you should first understand what a stipend is, what PF is, what employment entails, and the relationship between an employer and an employee.
If you browse all those topics in this forum or on Google, you may get answers to all the above. However, I am providing you with some links with the hope that you will gain some insight. The links are as follows:
- [Link 1](https://www.google.com/url?q=https://www.citehr.com/448524-questions-asked-direcotor-pf-esi.html&sa=U&ei=JAKwU9SxII61uASjn YHIBQ&ved=0CAYQFjAA&client=interna l-uds-cse&usg=AFQjCNEUP3TpThNTu2F_xboIc66GblVeUw )
- [Link 2](https://www.google.com/url?q=https://www.citehr.com/447790-pf-contribution-trainee.html&sa=U&ei=JAKwU9SxII61u ASjnYHIBQ&ved=0CAoQFjAC&client=int ernal-uds-cse&usg=AFQjCNHHz2dulPTVsnCkveu7LD49eb3jHA )
- [Link 3](https://www.google.com/url?q=https://www.citehr.com/447790-pf-contribution-trainee.html&sa=U&ei=JAKwU9SxII61u ASjnYHIBQ&ved=0CAoQFjAC&client=int ernal-uds-cse&usg=AFQjCNHHz2dulPTVsnCkveu7LD49eb3jHA )
- [Link 4](https://www.google.com/url?q=https://www.citehr.com/448975-pf-esi-interns-projec-work-students.html&sa=U&ei=JAKwU9SxII61 uASjnYHIBQ&ved=0CA4QFjAE&client=in ternal-uds-cse&usg=AFQjCNEgagqUCyXOoRZtlXbodq8hmP_3tg )
From India, Mumbai
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If the persons are apprentices under the Apprentices Act or under standing orders of the Company they are not employees and the stipend paid them will not attract EPF. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Mr. Deshmukh,
You have not written clearly. You said that 30 people freshly graduated from colleges are appointed. However, the category of work has not been mentioned. You stated that you are paying remuneration as a stipend. This statement is incorrect. Please consider whether you intend to pay them as a stipend; if so, they must be appointed under the Apprenticeship Act and receive a stipend as stipulated by the Government for different trades. In such a case, the Provident Fund does not apply. If they are appointed under normal service conditions, and your payment as remuneration will definitely attract the Provident Fund.
Whatever payment you are making, be it salary, remuneration, honorarium, stipend, or retainer ship, each term has its own definition depending on the category of service. You cannot simply choose any term you prefer. Each word must have its own meaning within the purview of the law.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Retired
Labour Laws Consultant
From India, Bidar
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You have not written clearly. You said that 30 people freshly graduated from colleges are appointed. However, the category of work has not been mentioned. You stated that you are paying remuneration as a stipend. This statement is incorrect. Please consider whether you intend to pay them as a stipend; if so, they must be appointed under the Apprenticeship Act and receive a stipend as stipulated by the Government for different trades. In such a case, the Provident Fund does not apply. If they are appointed under normal service conditions, and your payment as remuneration will definitely attract the Provident Fund.
Whatever payment you are making, be it salary, remuneration, honorarium, stipend, or retainer ship, each term has its own definition depending on the category of service. You cannot simply choose any term you prefer. Each word must have its own meaning within the purview of the law.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Retired
Labour Laws Consultant
From India, Bidar
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Dear Naresh,
Please refer to the Apprentice Act, which clearly states who is eligible to receive a stipend without any deductions. This is both a contractual and statutory obligation outlined in Section 13 of the Act, requiring employers to pay every apprentice a stipend during their training period at a rate not lower than the prescribed minimum. The specific stipend rate will be specified in the contract. Employers must make these stipend payments at regular intervals and adhere to prescribed conditions. It's important to note that apprentices should not be compensated based on piece-work, nor should they participate in any output bonus or other incentive schemes.
Thank you.
From India, Mumbai
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Please refer to the Apprentice Act, which clearly states who is eligible to receive a stipend without any deductions. This is both a contractual and statutory obligation outlined in Section 13 of the Act, requiring employers to pay every apprentice a stipend during their training period at a rate not lower than the prescribed minimum. The specific stipend rate will be specified in the contract. Employers must make these stipend payments at regular intervals and adhere to prescribed conditions. It's important to note that apprentices should not be compensated based on piece-work, nor should they participate in any output bonus or other incentive schemes.
Thank you.
From India, Mumbai
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[QUOTE=korgaonkar k a;2160201]Dear Naresh ji,
You can't avoid PF. If you do, then all the corporates and business houses will recruit the freshers only from campus en masse.
If the organization does not wish to extend the benefit of PF on the grounds that the freshers are not employed but are given a training opportunity, you have to seek an exemption in writing from the CPFC.
Seniors, please comment if this is correct.
Regards,
From India, Bangalore
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You can't avoid PF. If you do, then all the corporates and business houses will recruit the freshers only from campus en masse.
If the organization does not wish to extend the benefit of PF on the grounds that the freshers are not employed but are given a training opportunity, you have to seek an exemption in writing from the CPFC.
Seniors, please comment if this is correct.
Regards,
From India, Bangalore
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