Dear Mr. Rajan,
We are PF and ESI Consultants in New Delhi for last 10 years.
In response to your query, in simple terms I can expalin it.
Please note, there is no need to Deduct PF 'ONLY IF THE TRANEE / APPRENTICE IS SPONSORED BY SOME GOVT. ORGANISATION / INSTITUTE ETC.' for example is a person is studying in some Govt. Institution and joins you as apprentice through that Institute / organisation, in that case PF is not deductable.
In all other cases PF is Liable to be deducted no matter whatever is the nature of work (full time / part time / tranee etc.).
Regards,
Kapil...

From India, Delhi
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Dear Kapil,
Thanks for your post.
What is your suggestions regarding ESI to trainees? I know they are eligible for both PF and ESI but I don't have any documentary evidence to prove it. Can you please reply me with all details.
Thanks & Regards
Debajyoti

From India, Gurgaon
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Yes only who are under apprenticeship, they are not eligible for EPF. rest all other all eligible for EPF.
If we consider for petty work taken on contract, they deamad for pf and ESi why not for trainees.
shankar karnam

From India, Bangalore
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Hi Friends
Want to if ESI is applicable to a software company. Though most of our employees are drawing more than 10K, about 4-5 fall below that cut-off (including all allowance, except Conveyance & medical reimbursement).
Help me out figure whether we need to register under ESI. To add, we have a medical insurance cover for all employees.
regards
Jeena

From India, Bangalore
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Hi Jeena, If there are only 3-4 persons eligible for deduction of ESI, and if there is no chance of increase in near future, Just increase their salary to finish ESI obligation. thanks Debajyoti
From India, Gurgaon
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Dear Devjyoti,
It has been decided by the courts that trainees are not employees and are not covered by
the EPF Act. The court has held that stipend paid is not wages. It must be noted that
trainees were recruited under a particular Training Scheme and there was no guarantee of
employment after completion of the training period and that they were not entitled to
other benefits, which were available to other permanent employees.
These aspects have
been decided in Sri Rama Vilas Service Ltd. V RPFC 2000 –I-LLJ-709(Mad) and
Gandhi Vinita Ashram v PFC 1996 (1) CLR 1140 (P&H).
Regards,
Capt Vikas Pareek

From India, Delhi
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Trainees and apprentices are covered under the act unless the company has a certified standing order. With respect to wage limit of 6500, the act is very clear that all employees would be covered up to 6500. Beyond that, it becomes optional whether to contribute more than 6500 or not. However, the mere fact that an employee or trainee receives more than 6500 will not exempt them.

For example, if an employee is paid 7000, both the employer and employee would be liable to contribute up to 6500, which is mandatory. For the remaining 500, it becomes optional. Therefore, there is no question of exempting a trainee or employee just because they are paid more than 6500.

From India, Chennai
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