1. #1
    Unregistered

    Do fresher’s who are working on stipend also get PF deducted from it?

    I am working as a permanent employee in BSNL. Some of the candidates from telecom engineering college have joined on stipend. They are fresher’s. They have come for 1 year internship. Will they get PF deducted from their salary? Do they have all the facilities like the permanent employees? Please guide.

  2. #2
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Do fresher’s who are working on stipend also get PF deducted from it?

    Dear Aspirant,

    If the freshers are entitle to contnue to work even after completion of internship,their PF amount must be deducted from their stipend amount otherwise it is not needed,because the stipend is not the salary.

    It is better to bring it as a notice to the head of account section before taking your own decision.

    Thanks.

  3. #3
    prabhu Array
    Join Date
    Jul 2012
    Posts
    453

    Smile Re: Do fresher’s who are working on stipend also get PF deducted from it?

    Hi,


    Training period is different from the normal work period

    Permanent employees will get all benefits from the company such as

    1. Medical allowance

    2. Transport facility

    3. Loan facility

    4. Incentives

    5. PF deduction

    Whereas during training period , employees are given only stipend amount as decided by the company

    PF amount nothing is deducted and all the above allowances are not offered

    Mode of work is not permanent



    Thanks !!!!

  4. #4
    prabhu Array
    Join Date
    Jul 2012
    Posts
    453

    Re: Do fresher’s who are working on stipend also get PF deducted from it?

    HI


    Nope it is Actually not,,


    No Company offers PF deductions with the Salary in terms of Stipend or Consolidated Pay


    Once they successfully complete the Training they are reliable to receive the Benefits of the Company


    So you can be sure there will not be any deductions for Freshers under Stipend or Consolidated Pay



    Thanks

  5. #5
    G.one Array
    Join Date
    Jul 2012
    Posts
    677

    Re: Do fresher’s who are working on stipend also get PF deducted from it?


    • Stipend is only provided to the trainees.
    • As a fresher every company arranges the training session for their employees.
    • Employees receives the salary whereas the trainees receive the stipend.
    • There is no provident fund deduction on the stipend.
    • you will not get the benefits which generally received by employees
    • So once you turn employee, pf will be deducted.

  6. #6
    Ashutosh Tiwari Array
    Join Date
    Sep 2012
    Posts
    105

    Re: Do fresher’s who are working on stipend also get PF deducted from it?

    Dear friend,

    The interns working on stipend are actually not getting salary if we talk technically, and PF is deducted on salary if the basic pay is under Rs.6500 pay.
    So interns who are working are not entitled to pf deduction unless they are not absorbed by the same company on company's payroll as an permanent employee.
    Stipend is not entitled under PF deduction, neither employer have to contribute as EPF nor the intern need to contribute.

    All the best.

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