Dear All,
My question are-
1. If a person joins in an organisation as a trainee and gets stipend then will he be eligible for PF & ESI?
2. Also if a person joins as an Executive with such terms and conditions like he will be on probation for six months then can a company opt for not providing PF & ESI benefits untill confirmation? As per my knowledge PF & ESI is not subject to whether the person is in probation or confirmed. Plz suggest.
Regards,
DG
From India, Calcutta
1My question are-
1. If a person joins in an organisation as a trainee and gets stipend then will he be eligible for PF & ESI?
2. Also if a person joins as an Executive with such terms and conditions like he will be on probation for six months then can a company opt for not providing PF & ESI benefits untill confirmation? As per my knowledge PF & ESI is not subject to whether the person is in probation or confirmed. Plz suggest.
Regards,
DG
From India, Calcutta
From Day 1 Employee is eligible for both the above mentioned act ,Nature of job may be permanent or Temporary. Any queries pls feel free to call back. Ravikumar.S 9892028625
From India, Mumbai
From India, Mumbai
Hi DG If a person joins as a trainee he will not covered under PF some company may cover under ESI. If a person joins as an Executive he will be covered under both PF and ESi Regards, Sendil G
From India, Madras
From India, Madras
Hi DG,
A stipend is a form of monetary payment or salary, such as for an internship or apprenticeship. It is often distinct from a wage or a salary because it does not necessarily represent payment for work performed, instead it represents a payment that enables somebody to be exempt partly or wholly from waged or salaried employment in order to undertake a role that is normally unpaid Stipends are usually lower than what would be expected as a permanent salary for similar work. This is because the stipend is complemented by other benefits such as accreditation, instruction, food, and/or accommodation. Employers usually refer to money paid to graduate students as a stipend, rather than as wages, to reflect complementary benefits.
Hence, no PF can be calculated.
If in case it is high( for internship) then it can be given & taken as conusltancy fee which is paid after deducting TDS.
Employer can have a accident policy for the member in both the cases as mentioned above.
For an Employee.
From the very 1st day of his employment the PF is contributed by employee & employer & paid to the PF dept on 15th of every month.
If the gross is less than 15000/- p.m then ESI is applicable. Employer contri 4.75% on gross & employee contri 1.75% on gross is paid to ESI dept on 21st of ever month.
If the Gross is rs 15001/- p.m then ESI is not applicable, however, the company has a medical insurance for the employee, in many cases parents are also included. The burden of premium is on employer & not employee.
I hope I have made it simple?
From India, Bangalore
A stipend is a form of monetary payment or salary, such as for an internship or apprenticeship. It is often distinct from a wage or a salary because it does not necessarily represent payment for work performed, instead it represents a payment that enables somebody to be exempt partly or wholly from waged or salaried employment in order to undertake a role that is normally unpaid Stipends are usually lower than what would be expected as a permanent salary for similar work. This is because the stipend is complemented by other benefits such as accreditation, instruction, food, and/or accommodation. Employers usually refer to money paid to graduate students as a stipend, rather than as wages, to reflect complementary benefits.
Hence, no PF can be calculated.
If in case it is high( for internship) then it can be given & taken as conusltancy fee which is paid after deducting TDS.
Employer can have a accident policy for the member in both the cases as mentioned above.
For an Employee.
From the very 1st day of his employment the PF is contributed by employee & employer & paid to the PF dept on 15th of every month.
If the gross is less than 15000/- p.m then ESI is applicable. Employer contri 4.75% on gross & employee contri 1.75% on gross is paid to ESI dept on 21st of ever month.
If the Gross is rs 15001/- p.m then ESI is not applicable, however, the company has a medical insurance for the employee, in many cases parents are also included. The burden of premium is on employer & not employee.
I hope I have made it simple?
From India, Bangalore
Dear DG,
If the employee joined as trainee and gets stipend then the employee will not get any beneficial facilities like ESI,PF etc. In such case, the employer will deduct TDS for income tax.
Regards,
Sonia
From India, Bangalore
If the employee joined as trainee and gets stipend then the employee will not get any beneficial facilities like ESI,PF etc. In such case, the employer will deduct TDS for income tax.
Regards,
Sonia
From India, Bangalore
Hello Everyone
I have done my MBA and working in consultancy as recruiter..
Can any one guide me for return on PF and ESI for company.. this has been asked in the interview for generalist profile
and they asked me general format for pay roll.. please reply me in lay man language.. i have no experience for it, i am learning all this through surfing on google...
Please reply
Regards
Shweta
From India, Gurgaon
I have done my MBA and working in consultancy as recruiter..
Can any one guide me for return on PF and ESI for company.. this has been asked in the interview for generalist profile
and they asked me general format for pay roll.. please reply me in lay man language.. i have no experience for it, i am learning all this through surfing on google...
Please reply
Regards
Shweta
From India, Gurgaon
Dear Freinds,
My name is Kumar and I am in senior management of a limited company in Coimbatore south India. We have been advised by
many persons including a labour advocate on the applicability of PF for workmen.
Based on above advises, we had formulated our PF deduction method as follows.
1. Employees intended for long time work and continuoud stay which includes staff - PF deduction to start after completion of 240 days service.
2. Casual, Contract, and trainee or apprentice workers, Not covered unless they stay more than 240 days of service.
3. PF will be deducted for persons eligible as detailed above on 60% of salary (BASIC+DA) upto a ceiling of Rs 6500.00/month including the casual workers.
We have been following the above for almost 2-3 years now. Recently we had a visit from PF inspector,who has verified our records and has come up with following observations.
1. the PF has to be covered for an employee right from day one of his induction into the company.
2. All category of employees casual trainee, etc are to be Covered ub\nder PF from day 1.
3. Apprentice exemption can be allowed only if the company is registwered under National Apprenticeship. Otherwise they will be treated as regular workers and have to be cvered under PF.
4. For PF contribution gross salary is to be considered. Only HRA portion of salary to a maximum extent of 20% can be exempt.
Now we have been asked to recalculate the amounts right from 1.4.2008 and arrange to remit back payments.
irrespective whether employee is continuing in emplyment or not.
I request help of you seniors in clearly advising what is the correct requirement of the PF rule which can be safely followed
without getting into trouble with PF officials and also will be fair to the company.
My advance thanks to all your help.
Best regards
Kumar
From India, Coimbatore
My name is Kumar and I am in senior management of a limited company in Coimbatore south India. We have been advised by
many persons including a labour advocate on the applicability of PF for workmen.
Based on above advises, we had formulated our PF deduction method as follows.
1. Employees intended for long time work and continuoud stay which includes staff - PF deduction to start after completion of 240 days service.
2. Casual, Contract, and trainee or apprentice workers, Not covered unless they stay more than 240 days of service.
3. PF will be deducted for persons eligible as detailed above on 60% of salary (BASIC+DA) upto a ceiling of Rs 6500.00/month including the casual workers.
We have been following the above for almost 2-3 years now. Recently we had a visit from PF inspector,who has verified our records and has come up with following observations.
1. the PF has to be covered for an employee right from day one of his induction into the company.
2. All category of employees casual trainee, etc are to be Covered ub\nder PF from day 1.
3. Apprentice exemption can be allowed only if the company is registwered under National Apprenticeship. Otherwise they will be treated as regular workers and have to be cvered under PF.
4. For PF contribution gross salary is to be considered. Only HRA portion of salary to a maximum extent of 20% can be exempt.
Now we have been asked to recalculate the amounts right from 1.4.2008 and arrange to remit back payments.
irrespective whether employee is continuing in emplyment or not.
I request help of you seniors in clearly advising what is the correct requirement of the PF rule which can be safely followed
without getting into trouble with PF officials and also will be fair to the company.
My advance thanks to all your help.
Best regards
Kumar
From India, Coimbatore
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PF & ESI.zip
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Exp.and esi pf mis format.xls