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theva2204@gmail.com
Dear Experts,

I need clarification about EPF matter for interns

What kind of Declaration document has to get it from interns for non deduction of EPF.

we are paying Rs 21,500/-, so we are Exempted from ESI and EPF Limit.

Thanks and Regards
D.Devarajan

From India, Chennai
vmlakshminarayanan
943

Hi,

Not sure whom you are referring as interns.

As part of their curriculum college final year students to gain practical work exposure will undergo internship training with Organisations. Such students will submit the authorization letter from the respective college towards internship training. For such Interns PF/ESI not required and no need to obtain any declaration from them.

From India, Madras
Madhu.T.K
4246

Intern means a student under going some program of University doing some project work or internship as per the university curriculum. The period of such internship may extend to four months or six months and they will return to their campus once the internship is over. Such interns are totally excluded from PF (and ESI) and in support of it, you just need to produce a letter from their institution asking you to permit them to do the project or internship. The letter should mention that they are doing it as per the curriculum.

If you pay them Rs 21500 per month, then no document is required for excluding them from ESI but you can collect the same form 11 (PF) which declares that they do not have any PF account.

Paying this much of amount to an intern shall mean that you should be paying a regular employee something like Rs 50000 as starting salary. Or is it that you mean TRAINEE by intern? Then the status will be changed and that intern will qualify for various rights under different labour enactment like Gratuity, annual leave, etc.

From India, Kannur
Anonymous
After completion of Graduation, they are joined with our concerned as Interns, in that we are paying stipend Amount of Rs 21,500 per month without deduction of ESI and EPF, because they have crossed the Statutory limit of Rs 21,500/-, so in that scenario, the Employer has to get us the Declaration from interns for non- deduction of Statutory ( EPF).


1) Declaration form is mandatory or not.
2) is there any specific form / format as per the EPFO.

From India, Chennai
vmlakshminarayanan
943

Hi, You need to term them as Trainees and not Intern. Trainees are like regular employees undergoing training for a specific period .
From India, Madras
Anonymous
An intern is a developing professional who works at a company for a short time to gain entry-level experience and knowledge about a particular career field. Interns are most often college students, though other adults can also be interns, especially if they are changing careers or earning higher education degrees
From India, Chennai
Madhu.T.K
4246

You cannot call them as Interns because interns are those who are undergoing internship as part of curriculum of the University. You can only call those who have completed their program and come to gain some practical knowledge from your company as trainee. Trainees can be of two types, viz, those engaged following the Apprentice Act and those engaged directly without following the Apprentice Act. The former may be of two types, undergoing training in designated trades and those under optional Trades. These trainees are totally excluded from all labour Acts. But their stipend should be at par with the stipend fixed by the Central Govt in this regard.

All trainees other than Apprentices above referred are just like regular employees. They should be given the coverage of all the labour Acts. It is true that since their salary ( no need to say stipend since they are employees only) is above Rs 21000, they will not come under ESI, EPF and Bonus. But their service will count for gratuity. They should be given leave as per the law in force. Whatever be the work assigned, let it be development, research, they are employee only.

From India, Kannur
theva2204@gmail.com
An intern is a trainee who has signed on with an organization for a period of 3 months to 6 months, and we are paying the monthly stipend.
From India, Chennai
theva2204@gmail.com
You need to term them as Trainees and not Intern. Trainees are like regular employees undergoing training for a specific period Reply: yes,
but in our case they are paid interns for specific period 3-6 months time.

From India, Chennai
vmlakshminarayanan
943

Hi,

Irrespective of specific period, what ever name you may assign, such category of employment to be treated as regular employees only. I hope your Organization is not running a training institute. The purpose behind their training is to utilize their service after training period which will be cost effective compared to experienced candidate in the same field right ? So for the purpose of Gratuity and other benefits their actual DOJ right from training period to be considered.

From India, Madras
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