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
From India, New Delhi
No, if the candidate is there in a company only for the Internship then they are not eligible for the PF, TDS, ESI deductions. And If they are on Job and serving their Probation Period and after the Probation if they are turned into a permanent employee then they are eligible for the PF, ESI etc..
Aslo Every Employee is eligible for the Bonus if he had completed his/her 30 Days of working in that year.
From India, Delhi
Aslo Every Employee is eligible for the Bonus if he had completed his/her 30 Days of working in that year.
From India, Delhi
Hi Abedeen,
First of all I m not MR. I m Ms. Dipti and secondly i had also experienced the same. Uptill the probation and trainee period no PF is deducted becoz the there i sno asurance of the candidate weather they gona stay in the company or not after their Internship aslo you can have a look on google...
From India, Delhi
First of all I m not MR. I m Ms. Dipti and secondly i had also experienced the same. Uptill the probation and trainee period no PF is deducted becoz the there i sno asurance of the candidate weather they gona stay in the company or not after their Internship aslo you can have a look on google...
From India, Delhi
Dear Ms.Dipti,
I am extremly 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 are asked to do so. Now they had send 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.
Regard's
Shaikh
From India, Bhubaneswar
I am extremly 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 are asked to do so. Now they had send 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.
Regard's
Shaikh
From India, Bhubaneswar
Dear Ms Dipti
As per my exprience, Stipend holders are not eligible for PF,Becoz Stipend and salary/wages both are different things,but trainees are eligible for bonus after working of 30 days in that particular year
Thanks.
Sjjagriti
From India, Calcutta
As per my exprience, Stipend holders are not eligible for PF,Becoz Stipend and salary/wages both are different things,but trainees are eligible for bonus after working of 30 days in that particular year
Thanks.
Sjjagriti
From India, Calcutta
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 stiphend/salary paid to such trainee.
From India, Delhi
From India, Delhi
kindly see the definition of Employee unde PF Act section 2(f) clause ii which speak about that
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;
So if you have engaged such trainee as per your standing order or under Appreantice Act then they will be out or perview PF Act only.
However ESIC has Amended its definition of employee by amendment dated 24 May 2010, applicable from 1 June 2010, as per this definition the trainee/appreantice engaged either under SO or Appreantice Act, they shall be covered by the ESI Act.
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;
So if you have engaged such trainee as per your standing order or under Appreantice Act then they will be out or perview PF Act only.
However ESIC has Amended its definition of employee by amendment dated 24 May 2010, applicable from 1 June 2010, as per this definition the trainee/appreantice engaged either under SO or Appreantice Act, they shall be covered by the ESI Act.
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