Hi, Are interns who are paid stipend upto 6500 rs per month covered under the definition of employee under the PF Act. If yes, are there any exemptions.
From India, Vadodara
2From India, Vadodara
Thank you Nijanthan for the reply.
The definition of employee under the act is :-
(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work
of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-
(i) employed by or through a contractor in or in connection with the work of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing
orders of the establishment;
Would'nt then interns by definition be covered under the act ?
From India, Vadodara
The definition of employee under the act is :-
(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work
of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-
(i) employed by or through a contractor in or in connection with the work of the establishment;
(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing
orders of the establishment;
Would'nt then interns by definition be covered under the act ?
From India, Vadodara
Hi Jjyotsna,
What you mention is right and We have exception if it is register under Apprentice act 1961 so those stipend will not consider as Salary. The company who giving offer for the Trainee level as Employee then they are comes under the company salaried employee.
If it is more then 6500Rs you can't except from PF and ESIC. However If you not paying any wage or Salary and providing stipend is not consider as Employee.
The difference are Highlighted.
From India, Chennai
What you mention is right and We have exception if it is register under Apprentice act 1961 so those stipend will not consider as Salary. The company who giving offer for the Trainee level as Employee then they are comes under the company salaried employee.
If it is more then 6500Rs you can't except from PF and ESIC. However If you not paying any wage or Salary and providing stipend is not consider as Employee.
The difference are Highlighted.
From India, Chennai
Why should you pay the interns any stipend if they are undergoing their project? You need not pay it if the intention is genuine, ie, it is part of curriculum. On the other hand, if you pay stipend, it should be construed that you are using him (his labour) in your business operations and if so you should contribute PF and ESI by whatever name the payment is called.
Now PF applicable salary is not Rs 6500 but it is Rs 15000.
Madhu.T.K
From India, Kannur
Now PF applicable salary is not Rs 6500 but it is Rs 15000.
Madhu.T.K
From India, Kannur
"Interns" are not employees. They are not covered under EPF Act. Please read the provisions of the Act. Naturally giving them stipend or they are given free training without payment of stipend is not the criteria to decide about the status as they are not recruited to perform the work of the establishment but they are accommodated in the estt. to learn 'hands on' during the prescribed period of internship to qualify for the award of the degree/diploma. And they are not employed and not in "Employment".
EPF Act.(extract) xxxxxxxxxxxx
Definitions. - In this Act, unless the context otherwise requires, - xxxxxx
b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
(e) “employer” means-
(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause f of sub-section 1 of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and
(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;
(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-
(i) employed by or through a contractor in or in connection with the work of the establishment;.............
------------------
From India, Bangalore
EPF Act.(extract) xxxxxxxxxxxx
Definitions. - In this Act, unless the context otherwise requires, - xxxxxx
b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
(e) “employer” means-
(i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause f of sub-section 1 of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and
(ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;
(f) “employee” means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment and who gets his wages directly or indirectly from the employer, and includes any person,-
(i) employed by or through a contractor in or in connection with the work of the establishment;.............
------------------
From India, Bangalore
प्रिय महोदय,
मेरा नाम अंकित कुमार है और मैं Personnel & Admin Executive की पोस्ट पर कार्यरत हूँ मैं पी एफ के बिषय में जानकारी करना चाहता हूँ
यदि कोई कर्मचारी किसी भी कंपनी में रोजगार पाता है और कुछ दिन करके छोड़ देता क्या उसका नाम पी एफ कॉम्पलैन्स में आएगा ? और आएगा तो कितने दिन उपस्थिति होना चाहिए।जिससे हम उसे पी एफ में लें सकते है और कितने तक उपस्थिति होने पर हम उसे छोड़ सकते है
आप सभी से विनम्र निवेदन है इस समस्या में हमारी जल्द से जल्द मदद करे आपका सदैव आभारी रहूँगा।
सुक्रिया /आपका आभारी
अंकित कुमार
From India, Delhi
मेरा नाम अंकित कुमार है और मैं Personnel & Admin Executive की पोस्ट पर कार्यरत हूँ मैं पी एफ के बिषय में जानकारी करना चाहता हूँ
यदि कोई कर्मचारी किसी भी कंपनी में रोजगार पाता है और कुछ दिन करके छोड़ देता क्या उसका नाम पी एफ कॉम्पलैन्स में आएगा ? और आएगा तो कितने दिन उपस्थिति होना चाहिए।जिससे हम उसे पी एफ में लें सकते है और कितने तक उपस्थिति होने पर हम उसे छोड़ सकते है
आप सभी से विनम्र निवेदन है इस समस्या में हमारी जल्द से जल्द मदद करे आपका सदैव आभारी रहूँगा।
सुक्रिया /आपका आभारी
अंकित कुमार
From India, Delhi
Dear S.Kumarji,
1. I may invite your kind attention towards your remarks as above vide which you have mentioned ""Interns" are not employees." With due regards, I disagree with this statement. There is no law to my knowledge which state that "interns are not employees" within the meaning of ESI or EPF Acts. Section 2(9) of ESI Act, 1948 excludes only "apprentice engaged under Apprenticeship Act, 1961" . Similar are the provisions under EPF & MP Act, but this Act also include persons as engaged "Standing Orders of the Establishment."
2. The position as mentioned by you in above remarks is generally used by the employers for their benefits and do not cover a large number of casual and temporary employees in the pretext that such persons are only "trainees" or interns as you may say. But in the end, they are liable to pay the contributions alongwith interest and damages under ESI as well as under EPF as and when the issues is raised through any source including periodic inspection/verification of records. Supposing in a factory of 20 employees/persons, if 10 persons are engaged as "interns" or "trainees" for short or long period, without any recommendations from authorities established under the Apprenticeship Act, how will one justify such engagements.
3. I full agree with the views of Sh. Madhu T.K. as above in this thread. I hope your goodself will suggest, if I have written anything wrong, so that I may be able to up-date myself accordingly.
From India, Noida
1. I may invite your kind attention towards your remarks as above vide which you have mentioned ""Interns" are not employees." With due regards, I disagree with this statement. There is no law to my knowledge which state that "interns are not employees" within the meaning of ESI or EPF Acts. Section 2(9) of ESI Act, 1948 excludes only "apprentice engaged under Apprenticeship Act, 1961" . Similar are the provisions under EPF & MP Act, but this Act also include persons as engaged "Standing Orders of the Establishment."
2. The position as mentioned by you in above remarks is generally used by the employers for their benefits and do not cover a large number of casual and temporary employees in the pretext that such persons are only "trainees" or interns as you may say. But in the end, they are liable to pay the contributions alongwith interest and damages under ESI as well as under EPF as and when the issues is raised through any source including periodic inspection/verification of records. Supposing in a factory of 20 employees/persons, if 10 persons are engaged as "interns" or "trainees" for short or long period, without any recommendations from authorities established under the Apprenticeship Act, how will one justify such engagements.
3. I full agree with the views of Sh. Madhu T.K. as above in this thread. I hope your goodself will suggest, if I have written anything wrong, so that I may be able to up-date myself accordingly.
From India, Noida
Dear Sh. Ankit ji,
Please see my remarks in another thread started by you as follows:-
Sir,
1. As soon as the employee joins employment, his contribution under EPF & MPs Act, 1952 is required to be deducted and compliance is to be made upto and including the date he remains in employment of any unit. Even if the said employee is in employment for few days, his deductions and compliance is required to be made.
2. So far as I understand there is no infancy period, or there is no condition of regular employment in order to become eligible for deductions in respect of above Act.
https://www.citehr.com/512135-a.html
From India, Noida
Please see my remarks in another thread started by you as follows:-
Sir,
1. As soon as the employee joins employment, his contribution under EPF & MPs Act, 1952 is required to be deducted and compliance is to be made upto and including the date he remains in employment of any unit. Even if the said employee is in employment for few days, his deductions and compliance is required to be made.
2. So far as I understand there is no infancy period, or there is no condition of regular employment in order to become eligible for deductions in respect of above Act.
https://www.citehr.com/512135-a.html
From India, Noida
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