Dear Sir/Madam, We are giving a stipend to 2 people. Please tell me is there PF & ESI liability on a stipend or not? Should we applicable PF & ESI on a stipend or not?
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Please refer to all applicable Acts and Rules and apply your own wisdom before making any decisions.
If you are paying a stipend to the apprentice trainees, then no ESIC and EPF are applicable as per the Apprenticeship Act.
Ratan Bhardwaj VOPL Prithla
From India, Noida
Acknowledge(0)Amend(0)
3If you are paying a stipend to the apprentice trainees, then no ESIC and EPF are applicable as per the Apprenticeship Act.
Ratan Bhardwaj VOPL Prithla
From India, Noida
Acknowledge(0)Amend(0)
Dear Vaibhav,
The nomenclature of the compensation, even though called a 'stipend,' given to a person undergoing some sort of training in the organization is not sufficient to determine the PF and ESI coverage of such a person. He should have been engaged as such under a contract of apprenticeship either under the Apprentices Act, 1961, or under the Certified Standing Orders of the establishment and not employed under a contract of employment.
In the case of such apprentices, ESI is applicable even though they are paid a stipend, and PF is not applicable as they are not paid any salary or wage.
From India, Salem
Acknowledge(0)Amend(0)
The nomenclature of the compensation, even though called a 'stipend,' given to a person undergoing some sort of training in the organization is not sufficient to determine the PF and ESI coverage of such a person. He should have been engaged as such under a contract of apprenticeship either under the Apprentices Act, 1961, or under the Certified Standing Orders of the establishment and not employed under a contract of employment.
In the case of such apprentices, ESI is applicable even though they are paid a stipend, and PF is not applicable as they are not paid any salary or wage.
From India, Salem
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
PF & ESI.zip
Presentation PF&ESI.ppt
Exp.and esi pf mis format.xls