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Do PF Covers for NEEM Trainees ?

NEEM Scheme, also known as National Employability Enhancement Scheme, is a pioneering initiative taken jointly by AICTE and the Government of India. The Scheme aims at producing skilled laborers and counters the problem of the skilled labor shortage in India.

There have been numerous representations seeking clarification on NEEM Trainees’ exemption from EP & MP Act, 1952.

On 24/02/2022 the Ministry of Labour & Employment, Government of India gave a clarification to it stating that The Employees Provident Fund And Miscellaneous Provisions Act, 1952 will be applicable for the students getting placed in companies and appointed as employees of the establishments even during job or training or induction and other training taken after becoming an employee. Therefore, Trainees Under National Employability Enhancement Mission are not exempted from the definition of “employee” under The Employees Provident Fund And Miscellaneous Provisions Act, 1952.

And the memo on 12/10/2015 states that the students who are on industrial training/ practical on-the-job training as an integral part of the academic curriculum. Even if the stipend is paid as they are exposed to working on sophisticated equipment/ instruments.  Still, such students trainees are exempted under the provisions of the Employee Provident Funds & Miscellaneous Provisions Act, 1952.

To conclude, If the Employee-Employer relation exists, then such employees are then to be covered under EPFO and PF contribution is to be remitted even during the job training /inductions/other training taken after becoming the employee.

Reference – Here

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Sudha

A result driven skilled finance professional, having completed Masters in Business administration with 3+ years of experience having successfully advised multinational corporations and SME businesses in the areas of statutory compliances, due diligence, indirect taxation, HR processes and compliance risk management. A young mind with the energy to resolve cumbersome processes in the smooth functioning of the organisation and the urge to implement a complete solution to accelerate performance sums what keeps Sudha going.

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