An establishment employs various employees in various departments within the organization. And these employees work under different categories such as interns, full-time employees, contract employees, etc. But not all the employees are subjected to the EPF benefits. So, in this article, we would ponder upon the same to get your queries answered. Is a trainee an ’employee’ under the EPF Act? Is a part-time intern subjected to EPF benefits?
Is A Trainee An ‘Employee’ Under The EPF Act?
The benefits that EPF always provides allures individuals to enroll themselves within the same. The tax benefits and the interest that you receive are one of the best in the industry. Moreover, the earlier you start to contribute to your EPF account, the better are the chances to earn a handsome amount of money as an EPF sum at your retirement age according to schedule 1.
You might be wondering as a fresher that you are subjected to any EPF benefits as a trainee. To get it straight, an employee would be considered for the EPF scheme when he/she is employed as a trainee. But it is crucial to note that a trainee is different from that of an intern. Under the tag of an intern, you are considered under the Apprentice’s Act. You are an apprentice, and you should not be considered under the employee’s act of the EPFO. An employee under the apprentice abides because the individual under this act is a person who is learning a trade from a skilled employer to gain experience under the practical working environment. The Supreme court says if the trainees are interns, then they get a stipend and are not employed by the company on a permanent basis, so they are not subject to EPF.
Also, the employee under this approves to work for a fixed period at low wages. Moreover, the system of an apprentice is quite prevalent these days. The establishment tries to look for individuals to work for the company as an apprentice to search for the right talent for their company under a specified title. Most private organizations have adopted this methodology. But still, the trainee as an employee is considered under the EPF Act in various government organizations.
As a fresher, you need to experience the real world and the practices you need to perform while working for the organization. With the rising competition, the companies don’t want to commit to individuals who do not fit in the real working environment. So the employer employs the individuals on an interns basis to compute the individual’s capability to be a future employee for the organization. This fact shouldn’t dishearten you. Moreover, you should try to prove yourself to the organization that you are just the company’s right choice.