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Rajesh (CA)     17 March 2009

Applicability

Does the EPF & MP Act is applicable on apprenticee and trainee? Do we required to deduct the PF on the trainee's Stipend? What are the requirements to show the employee as a trainee? Please let me know because some employees are not ready for the PF deduction from their salary.



Learning

 3 Replies

Manish Singh (Advocate)     18 March 2009

Dear Mr Rajesh,


firstly yu will have to look into the fact that in what capacity they have been engaged to the Establishment.


1. Are they apprentices uder the Apprentices Act?


2. is the establishment is covered by the Standing orders act?


if bothe the above conditions are staisfied then the said trainees/ apprentices shall not be defined as an employee hence no deduction of PF is mandatory but in other situatios they will be termed as an employee hence liable for PF deduction. 

Rajesh (CA)     18 March 2009

Is there is any possibility of no deduction of PF for the employees having salary between 10000 to 15000?

Manish Singh (Advocate)     18 March 2009

if the basic salary+dearness allowance + reatining alowance is upto or lower than Rs 6500 then only you shall be liable to deduct PF otherwise its upon your descretion.


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