Dear all Please inform me that PF and ESIC deduct on probation period of employee? Probation employee and Trainee both are same ? CGM
From India, Raikot
5From India, Raikot
Hello CGM
Well is depend on the contract of employment.
1.) if you hire for a fixed period as Trainee-then no deductions of PF and ESI, its on stipend basis , you can deduct professional fee.
2.) If you consider as probabtion Employee or Trainee, as per Act yes you can deduct the PF and ESI .
You can also check the guidlines of Trainee employement or Probabation Employee employment becasue some company has different policy for both cases.
thanks
Ajay Chhatwal
From India, Gurgaon
Well is depend on the contract of employment.
1.) if you hire for a fixed period as Trainee-then no deductions of PF and ESI, its on stipend basis , you can deduct professional fee.
2.) If you consider as probabtion Employee or Trainee, as per Act yes you can deduct the PF and ESI .
You can also check the guidlines of Trainee employement or Probabation Employee employment becasue some company has different policy for both cases.
thanks
Ajay Chhatwal
From India, Gurgaon
As Mr.Sanjeev clarified, P.F and ESI are deductible from the first day of joining by an employee which menas even during probation provided their wages are within the limit of Rs.6500/-p.m or 10000/-p.m respectively. It is a statutory liability and you cannot enter into a contract with the employee to avoid this liability.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
I am trying to put it in simple way, all statutory liability like ESI, EPF & PTax are applicable to the Probationery and Trainee
staff / workmen sbuect to the limits priscribed under respective act. I.E. - ESI - 15000/- p.m. EPF - 6500/- p.m. and PTax
as per structure [In Maharashtra] upto Rs. 5000/- earned gross salary/wages - NIL; Rs. 5001 to 10,000/- - Rs. 150/- and
above Rs. 10,000/- - it is Rs. 200/- [In Feb paid in March it should be 300/-]
Regards
Pramod Thakar
Pune
From India, Pune
staff / workmen sbuect to the limits priscribed under respective act. I.E. - ESI - 15000/- p.m. EPF - 6500/- p.m. and PTax
as per structure [In Maharashtra] upto Rs. 5000/- earned gross salary/wages - NIL; Rs. 5001 to 10,000/- - Rs. 150/- and
above Rs. 10,000/- - it is Rs. 200/- [In Feb paid in March it should be 300/-]
Regards
Pramod Thakar
Pune
From India, Pune
Dear Mr Sanjeev is absolutely right ESI and PF deduction does not have any relation with Probation it should be deducted from the date of joining.
From India, Delhi
From India, Delhi
Sub- probation P.F&ESI deductions.
In my view, employees under probation and trainees are not on par in so far as their eligibility for P.F and ESI contributions are concerned.The P.F Act clearly excludes apprentices and trainees appointed under the Apprentices Act and Standing Orders from being entitled to P.F since what they are apid is stipend and so far as ESI is concerned, apprentices/ trainees appointed under the Apprentices Act are not eligible but trainess appointed understanding orders are made eligible by a recent amendment.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
In my view, employees under probation and trainees are not on par in so far as their eligibility for P.F and ESI contributions are concerned.The P.F Act clearly excludes apprentices and trainees appointed under the Apprentices Act and Standing Orders from being entitled to P.F since what they are apid is stipend and so far as ESI is concerned, apprentices/ trainees appointed under the Apprentices Act are not eligible but trainess appointed understanding orders are made eligible by a recent amendment.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
Employees on probation are neither trainees and nor apprentices. They are at par with rest of the employees of the organization.
From India, Mumbai
From India, Mumbai
Dear sir, an newly join employee under the trainee catagory ESI should compulsory as per law in same cases no need to deduct PFafter the probatation period PF is compulsory Thanks V.Amuthan
From India, Karur
From India, Karur
In case Apprentice under the Apprenticeship Act is given stipend as per stipend fixed by the Apprentice Board, it will not attact the provisions of PF & ESI. If the employer is paying more than the amount fixed by the Apprentice Board, then PF Authorities may term excess amount of stipend as wages and demand the employer to deduct PF and remit to them with matching contributions. However, we may have to put forth argument that amount paid over and above the rate fixed is not wages.
From India, Mumbai
From India, Mumbai
Dear CGM,
In my opinion a reading of the EPF act states that Trainees hired under provisions of approved Standing orders of the company will be exempt from payment of EPF. For example if the employee is hired as a trainee for 2 year period out of which one year he is under training and the second year he is on probation as per provisions in the Standing orders of the Company, then he is exempt from EPF for the first two years.
If he is not covered under the provisions of the Standing order then he is entitled for PF. The coverage here would mean that you have to explicitly state in the appointment order that he is hired as per the provisions of the Standing orders of the company.
ESI is applicable from the day one for all employees including trainees under any category, contract employees subject to the wage ceiling of Rs.15000/- per month.
M.V.KANNAN
From India, Madras
In my opinion a reading of the EPF act states that Trainees hired under provisions of approved Standing orders of the company will be exempt from payment of EPF. For example if the employee is hired as a trainee for 2 year period out of which one year he is under training and the second year he is on probation as per provisions in the Standing orders of the Company, then he is exempt from EPF for the first two years.
If he is not covered under the provisions of the Standing order then he is entitled for PF. The coverage here would mean that you have to explicitly state in the appointment order that he is hired as per the provisions of the Standing orders of the company.
ESI is applicable from the day one for all employees including trainees under any category, contract employees subject to the wage ceiling of Rs.15000/- per month.
M.V.KANNAN
From India, Madras
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls