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Provident Fund Act
Human Resources » Industrial Law & Discipline

Chrm Message From: archanahr Total Posts: 29 Join Date: 06/11/2006
Rank: Executive Post Date: 03/03/2007 01:27:27 Points: 145 Location: United States

Dear All,

I need some clarifications on the PF Act . Please advise me if we need to deduct PF contribution and professional tax from the stipend of the summer trainees.

As per my understanding, trainees are not in the payrolls so this act does not apply to them.

Look forward to your support.



Chrm Message From: sanjay04 Total Posts: 57 Join Date: 06/11/2006  
Rank: Manager Post Date: 03/03/2007 06:12:23 Points: 285 Location: United States

hello archana,

I think u r correct the trainees r not covered under the PF as they r paid some amount as
stipend n included in the muster rolls.

Sanjay Mewar

Chrm Message From: ashishah Total Posts: 24 Join Date: 06/11/2006  
Rank: Executive Post Date: 03/03/2007 06:14:41 Points: 120 Location: United States

Irrespective of whether a trainee is working 4 u, even if 4 a day, s/he must re. the PF/ESIC benefits, or the co. will be held liable.

Only in case of retainers/consultants wrking or lawyers who r not on u'r payrolls & wrking 4 a frm, are not eligilble to re. those benefits

Hope I was able to solve the problem.



Chrm Message From: raghu Total Posts: 51 Join Date: 06/11/2006  
Rank: Manager Post Date: 03/03/2007 06:17:06 Points: 255 Location: United States

Helo all,

Trainees are indeed covered under the PF Act. Any full-time or part-time are covered under the PF Act and are subjected to deduct the PF & Professional Tax amount from their salary or stipend.

Probably you can think about giving the trainees a honorarium instead of salary or stipend.

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