Dear Sir/Madam, We are giving a stipend to 2 people. Please tell me is there PF & ESI liability on a stipend or not? Should we applicable PF & ESI on a stipend or not?
From India, Delhi
From India, Delhi
Please refer all applicable Acts and Rules and apply your own wisdom before taking any decision.
If you are paying stipend to the apprentice trainees, then no esic and epf is applicable as per apprenticeship act.
Ratan Bhardwaj
VOPL Prithla
From India, Noida
3If you are paying stipend to the apprentice trainees, then no esic and epf is applicable as per apprenticeship act.
Ratan Bhardwaj
VOPL Prithla
From India, Noida
Dear Vaibhav,
The nomenclature of the compensation eventhough called as ' stipend ' given to a person undergoing some sort of training in the organization is not suffice to determine the PF and ESI coverage of such a person. He should have been engaged as such under a contract of apprenticeship either under the Apprentices Act,1961 or under the Certified Standing Orders of the establishment and not employed under a contract of employment.
In the case of such Apprentices ESI is applicable though they are paid stipend and PF is not applicable as they are not paid any salary or wage.
From India, Salem
The nomenclature of the compensation eventhough called as ' stipend ' given to a person undergoing some sort of training in the organization is not suffice to determine the PF and ESI coverage of such a person. He should have been engaged as such under a contract of apprenticeship either under the Apprentices Act,1961 or under the Certified Standing Orders of the establishment and not employed under a contract of employment.
In the case of such Apprentices ESI is applicable though they are paid stipend and PF is not applicable as they are not paid any salary or wage.
From India, Salem
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PF & ESI.zip
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Exp.and esi pf mis format.xls