PT for Stipend Paid to Trainee

Hello Team,

We appoint the fresher Engineers as a trainee with the stipend of Rs. 10000/- PM for a year. after 01 year they are offer as on roll employee. I want to know about how much the stipend should be given to such trainees as per law and is any deduction like PT applicable to them. Kindly guide.

Regards,
Amruta R

6 Likes

Hi @AmrutaR

Have done some research here and sharing few points.

Trainees shall be considered for the purpose of PF, ESI, PT; until and unless they are Apprentices.

The minimum rate of stipend per month shall be calculated at a percentage of the minimum wage of semi-skilled workers of the respective state or union territory which will be, namely

  • Seventy percent during the first year of training,
  • Eighty percent during the second year, and
  • Ninety per percent in the third and the fourth year.

Note: An employee engaged for the same work, cannot be paid less than another, who performs the same duties and responsibilities. Certainly not, in a welfare state

Will leave for others too to share their thoughts on this.

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Thanks Dinesh,

What are the rules for Apprentice hiring?

Regards,
Amruta R

5 Likes

As far as I have consulted with our consultant he says, we can give them some amount under the heading of petrol allowance so that we do not need to pay PF/ESIC/ PT as we are providing them learning opportunity. So only travelling allowances should be suffice. Just make sure to mention in the appointment letter specifically “petrol allowances” and do not show it as “earning” anywhere in payroll or letter issued.

My experience but still crosscheck from concern authority. Thanks.

6 Likes

True, agree with @adminKO some of these practical experience really helps :slight_smile: thanks @adminKO (Anamika)

1 Like

Agreed with @adminKO

Thanks

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