Ministry of Labour and Employment (“MoLE“) Social Security Division, through an office memorandum NO. S-65025/01/2024-SS-II dated 27.9.24 has declared that interns engaged under PM Internship Scheme would be employees under Labour Laws.
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Ministry has reviewed the definitions of wages and employees as stated in Sections 2(b) and 2(f) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, along with provisions from the Payment of Wages Act, 1936. The review emphasized that wages are contingent upon the terms of employment, whether explicitly stated or implied. This determination is crucial in assessing whether the payments made qualify as wages. Additionally, the MoLE referenced a circular from the Ministry of Corporate Affairs dated September 18, 2024, which clarified that internships do not constitute employment for wages. The circular also noted that the monthly internship allowance of INR 4,500 (Indian Rupees Four Thousand Five Hundred) is to be directly deposited into the intern’s account by the Government of India. Following this analysis, the MoLE concluded that interns engaged under the PM Internship Scheme do not, prima facie, qualify as employees.
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