If one is recruiting a person as trainee and paying him stipend for temporary period of 6 months, is PF and ESIC applicable for him. There is no contract or so. Just a appointment letter is issued. Can one pay an amount, say Rs. 10,000 without any deductions (like PF,ESIC & PT etc.), as he is not on payroll. What are the requirements for paying stipend? Is an agreement or contract required?
bhavik mehta
(C.A.)
(526 Points)
Replied 30 November 2011
ya he can...
because , as per payment of gratutity act, and other relavant acts,... an article assisstant is not covered under the defination of employee...,so he can.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 30 November 2011
No need to deduct PF, ESIC while paying Stipend to a Trainee, as he is not covered under the term 'Employee'.
Regards,
Devendra Kulkarni
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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