LexThe EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
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THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS
PROVISIONS ACT, 1952
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and application.
2. Definitions.
2A. Establishment to include all departments and branches.
3. Power to apply Act to an establishment which has a common provident fund with another
establishment.
4. Power to add to Schedule I.
5. Employees’ Provident Fund Schemes.
5A. Central Board.
5AA. Executive Committee.
5B. State Board.
5C. Board of Trustees to be body corporate.
5D. Appointment of officers.
5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to
be invalidated on certain grounds.
5E. Delegation.
6. Contributions and matters which may be provided for in Schemes.
6A. Employees’ Pension Scheme.
6C. Employees’ Deposit-linked Insurance Scheme.
6D. Laying of schemes before Parliament.
7. Modification of Scheme.
7A. Determination of moneys due from employers.
7B. Review of orders passed under section 7A.
7C. Determination of escaped amount.
7D. Tribunal.
7E. [Omitted.].
7F. [Omitted.].
7G. [Omitted.].
7H. [Omitted.].
7-I. Appeals to Tribunal.
7J. Procedure of Tribunals.
7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint
presenting officers.
7L. Orders of Tribunal.
7M. [Omitted.].
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SECTIONS
7N. [Omitted.].
7-O. Deposit of amount due, on filing appeal.
7P. Transfer of certain applications to Tribunals.
7Q. Interest payable by the employer.
8. Mode of recovery of moneys due from employers.
8A. Recovery of moneys by employers and contractors.
8B. Issue of certificate to the Recovery Officer.
8C. Recovery Officer to whom certificate is to be forwarded.
8D. Validity of certificate and amendment thereof.
8E. Stay of proceedings under certificate and amendment or withdrawal thereof.
8F. Other modes of recovery.
8G. Application of certain provisions of Income-tax Act.
9. Fund to be recognised under Act 11 of 1922.
10. Protection against attachment.
11. Priority of payment of contributions over other debts.
12. Employer not to reduce wages, etc.
13. Inspectors.
14. Penalties.
14A. Offences by companies.
14AA. Enhanced punishment in certain cases after previous conviction.
14AB. Certain offences to be cognizable.
14AC. Cognizance and trial of offences.
14B. Power to recover damages.
14C. Power of court to make orders.
15. Special provisions relating to existing provident funds.
16. Act not to apply to certain establishments.
16A. Authorising certain employers to maintain provident fund accounts.
17. Power to exempt.
17A. Transfer of accounts.
17AA. Act to have effect notwithstanding anything contained in Act 31 of 1956.
17B. Liability in case of transfer of establishment.
18. Protection of action taken in good faith.
18A. Authorities and inspector to be public servant.
19. Delegation of powers.
20. Power of Central Government to give directions.
21. Power to make rules.
22. Power to remove difficulties.
SCHEDULE I.
SCHEDULE II.
SCHEDULE III.
SCHEDULE IV.
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THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS
ACT, 1952
ACT NO. 19 OF 19521
[4th March, 1952.]
An Act to provide for the i nstitution of provident funds 2[,3[pension fund ] and deposit-linked
insurance fund] for employees in factories and other establishments.
BE it enacted by Parliament as follows:—
1. Short title, extent and application .—4[(1) This Act may be called the Employees ’ Provident
Funds and Miscellaneous Provisions Act, 1952.]
(2) It extends to the whole of India 5***.
6[(3) Subject to the provisions contained in section 16, it applies—
(a) to every establishment which is a factory engaged in any industry specifi ed in Schedule I and
in which 7[twenty] or more persons are employed, and
(b) to any other establishment employing 6[twenty] or more persons or class of such
establishments which the Central Government may, by notification in the Official G azette, specify in
this behalf:
Provided that the Central Government may, after giving not less than two months ’ notice of its
intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any
establishment employing suc h number of persons less than 6[twenty] as may be specified in the
notification.]
8[(4) Notwithstanding anything contained in sub -section ( 3) of this section or sub -section ( 1) of
section 16, where it appears to the Central Provident Fund Commissioner, whether on an application
made to him in this behalf or otherw ise, that the employer and the majority of employees in relation to
any establishment have agreed that the provisions of this Act should be made applicable to the
establishment, he may, by notification in the Official Gazette, apply the provisions of this Act to that
establishment on and from the date of such agreement or from any subsequent dat e specified in such
agreement.]
9[(5) An establishment to which this Act applies shall continue to be governed by this Act
notwithstanding that the number of persons employed therein at any time falls below twenty.]
10* * * * *
2. Definitions.—In this Act, unless the context otherwise requires,—
11[(a) “appropriate Government” means—
1. This Act has been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and the First Schedule: Pondicherry by Reg.
7 of 1963, s. 3 and the First Schedule and Goa, Daman and Diu by Reg. 11 of 1963, s. 3 and Schedule (1-7-1964).
2. Subs. by Act 99 of 1976, s. 16, for “and family pension fund” (w.e.f. 1-8-1976).
3. Subs. by Act 25 of 1996, s. 2, for “family pension fund” (w.e.f. 16-11-1995).
4. Subs. by Act 99 of 1976, s. 17, for sub-section (1) (w.e.f. 1-8-1976).
5. The Words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-
2019) and extended to the Union territory of Jammu and Kashmir and Union territory of Ladakh by notification No. S.O.
3962(E), Part II-section 3-Sub-section (ii) dated 31-10-20 (w.e.f. 1-1-2020).
6. Subs. by Act 94 of 1956, s. 2, for sub-section (3).
7. Subs. by Act 46 of 1960, s. 2, for “fifty” (w.e.f. 31-12-1960).
8. Subs. by Act 33 of 1988, s. 2, for sub-section (4) (w.e.f. 1-8-1988).
9. Ins. by Act 46 of 1960, s. 2 (w.e.f. 31-12-1960).
10. The proviso omitted by Act 16 of 1971, s. 13 (w.e.f. 23-4-1971).
11. Subs. by Act 22 of 1958, s. 2, for clause (a).
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(i) in relation to an establishment belonging to, or under the control of, the Central
Government or in relation to an establishment connected with a railway company, a major port, a
mine or an oil field or a controlled industry, 1[or in relation to an establishment having
departments or branches in more than one State,] the Central Government; and
(ii) in relation to any other establishment, the State Government;]
2[(aa) “authorised officer” means the Central Provident Fund Commissioner, Additional Central
Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund
Commissioner or such other officer as may be authorised by the Central Government, by notification
in the Official Gazette;]
(b) “basic wages” means all emoluments which are earned by an employee while on duty or 3[ on
leave or on holidays with wages in either case] in accordance with the terms of the contract of
employment and which are paid or payable in cash to him, but does not include—
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to
an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance,
bonus commission or any other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
(iii) any presents made by the employer;
(c) “contribution” means a contribution payable in respe ct of a member under a Scheme 4[or the
contribution payable in respect of an employee to whom the Insurance Scheme applies];
(d) “controlled industry” means any industry the control of which by the Union has been declared
by a Central Act to be expedient in the public interest;
5[(e) “employer” means—
(i) in relation to an establishment which is a factory, the owner or occupier of the factory,
including the agent of such owner or occupier, the legal representative of a deceased owner or
occupier and, where a person has been named as a manager of the factory under clause ( f) of
sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and
(ii) in relation to any other establishment, the person who, or the authority which, has the
ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a
manager, managing director or managing agent, such manager, managi ng director or managing
agent;]
(f) “employee” means any person who is employed for wages in any kind of work, manual or
otherwise, in or i n connection with the work of 6[an establishment], and who gets his wages directly
or indirectly from the employer, 7[and includes any person—
(i) employed by or t hrough a contractor in or in connection with the work of the
establishment;
1. Ins. by Act 22 of 1965, s. 2 (w.e.f. 24-11-1964).
2. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).
3. Subs. by s. 3, ibid., for “on leave with wages” (w.e.f. 1-8-1988).
4. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
5. Subs. by Act 94 of 1956, s. 4, for clause (e).
6. Subs. by ibid., s. 3, for “a factory”.
7. Subs. by Act 33 of 1988, s. 3, for “and includes an y person employed by or through a contractor in or in connection with the
work of the establishment” (w.e.f. 1-8-1988).
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(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act,
1961 (52 of 1961), or under the standing orders of the establishment;]
1[(ff) “exempted employee” means an employee to whom a Scheme 2[or the Insurance Scheme, as
the case may be,] would, but for the exemption granted under3*** section 17, have applied;
(fff) “exempted 4[establishment]” means 5[an establishment] in respect of which an exemption has
been granted under section 17 from the operation of all or any of the provisions of any Scheme 2[or
the Insurance Scheme, as the case may be], whether such exem ption has been granted to the
4[establishment] as such or to any person or class of persons employed therein;]
(g) “factory” means any premises, including the precincts thereof, in any part of which a
manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power
or without the aid of power;
6* * * * *
(h) “Fund” means the provident fund established under a Scheme;
(i) “industry” means any industry specified in Schedule I, and includes any other industry added
to the Schedule by notification under section 4;
2[(ia) “Insurance Fund ” means the Deposit -linked Insurance Fund established under
sub-section (2) of section 6C;
(ib) “Insurance Scheme” means the Employees” Deposit-linked Insurance Scheme framed under
sub-section (1) of section 6C;]
7[8[(ic)] “manufacture” or “manufacturing process” means any process for making, altering,
repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or
otherwise treating or adapting any article or substance with a view to its use, sale, tr ansport, delivery
or disposal;]
(j) “member” means a member of the Fund;
(k) “occupier of a factory ” means the person who has ultimate control over the affairs of the
factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to
be the occupier of the factory;
9[(kA) “Pension Fund” means the Employees’ Pension Fund established under sub -section (2) of
section 6A;
(kB) “Pension Scheme” means the Employees’ Pension Scheme framed under sub -section (1) of
section 6A;]
10[(ka) “prescribed” means prescribed by rules made under this Act;
1. Ins. by Act 37 of 1953, s. 3.
2. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
3. The words, brackets and figure “sub-section (1) of” omitted by Act 28 of 1963, s. 2 (w.e.f. 30-11-1963).
4. Subs. by Act 94 of 1956, s. 3, for “factory”.
5. Subs. by s. 3, ibid., for “a factory”.
6. Omitted by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).
7. Subs. by Act 28 of 1963, s. 2, for clause (ia) (w.e.f. 30-11-1963).
8. Clause (ia) re-lettered as clause (ic) by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).
9. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).
10. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).
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(kb) “Recovery Officer” means any officer of the Central Government, State Government or the
Board of Trustees constituted under section 5A, who may be authorised by the Central Government,
by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act;]
1[(l) “Scheme” means the Employees’ Provident Fund Scheme framed under section 5.]
2[(ll) “Superannuation”, in relation to an employee, who is the member of the Pension Scheme
means the attainment, by the said employee, of the age of fifty-eight years;]
3[(m) “Tribunal” means the Industrial Tribunal referred to in section 7 D].
4[2A. Establishment to include all departments and branches. —For the removal of doubts, it is
hereby declared that where an establishment consists of different departments or has branches, whether
situate in the same place or in different places, all such departments or branches shall be treated as parts
of the same establishment.]
5[3. Power to a pply Act to an establishment which has a common provident fund with another
establishment.—Where immediately before this Act becomes applicable to an establishment there is in
existence a provident fund which is common to the employees employed in that est ablishment and
employees in any other establishment, the Central Government may, by notification in Official Gazette,
direct that the provisions of this Act shall also apply to such other establishment.]
4. Power to add to Schedule I .—(1) The Central Government may, by notification in the Official
Gazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion that a
provident fund scheme should be framed under this Act, and thereupon the industry so added shall be
deemed to be an industry specified in Schedule I for the purposes of this Act.
(2) All notifications under sub -section (1) shall be laid before Parliament, as soon as may be, after
they are issued.
5. Employees’ Provident Fund Schemes .—6[(1)] The Central Government may, by notification in
the Official Gazette, frame a Scheme to be called the Employees ’ Provident Fund Scheme for the
establishment of provident funds under this Act for employees or for any class of employees and specify
the 7[establishments] or class of 7[establishments] to which the said Scheme shall apply 8[and there shall
be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the
provisions of this Act and the Scheme].
9[(1A) The Fund shall vest in, an d be administered by, the Central Board constituted under section
5A.
(1B) Subject to the provisions of this Act, a Scheme framed under sub -section (1) may provide for all
or any of the matters specified in Schedule II.]
10[(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect
either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.]
1. Subs. by Act 16 of 1971, s. 14, for clause (l) (w.e.f. 23-4-1971).
2. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).
3. Ins. by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017).
4. Ins. by Act 46 of 1960, s. 3 (w.e.f. 31-12-1960).
5. Subs. by Act 94 of 1956, s. 5, for section 3.
6. Section 5 re-numbered as sub-section (1) thereof by Act 37 of 1953, s. 4.
7. Subs. by Act 94 of 1956, s. 3, for “factories”.
8. Added by Act 37 of 1953, s. 4.
9. Ins. by Act 28 of 1963, s. 3 (w.e.f. 30-11-1963).
10. Ins. by Act 37 of 1953, s. 4.
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1[5A. Central Board .—(1) The Central Government may, by notification in the Official Gazette,
constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to
which this Act extends (hereinafter in this Act referred to as the Central Board ) consisting of the
following 2[persons as members] namely:—
(a) 3[a Chairman and a Vice-Chairman] to be appointed by the Central Government;
4[(aa) the Central Provident Fund Commissioner, ex officio;]
(b) not more than five persons appointed by the Central Government from amongst its officials;
(c) not more than fifteen persons representing Governments of such States as the Central
Government may specify in this behalf, appointed by the Central Government;
(d) 5[ten persons] representing employers of the establishments to which the Scheme applies,
appointed by the Central Government after consultation with such organisations of employers as may
be recognised by the Central Government in this behalf; and
(e) 5[ten persons] representing employees in the establishments to which the Scheme applies,
appointed by the Central Government after consultation with such organisations of employees as may
be recognised by the Central Government in this behalf.
(2) The terms and conditions subject to which a member of the Central Board may be appointed and
the time, place and procedure of the meetings of the Central Board shall be such as may be provided for
in the Scheme.
(3) The Central Board shall 6[, subject to the provisions of section 6A 7[and section 6C ]] administer
the Fund vested in it in such manner as may be specified in the Scheme.
(4) The Central Board shall perform such other functions as it may be required to perform by or under
any provisions of the Scheme 8[, the 9[Pension] Scheme and the Insurance Scheme].
10[(5) The Central Board shall maintain proper accounts of its income and expenditure in such form
and in such manner as the Central Government may, after consultation with the Comptroller and Auditor-
General of India, specify in the Scheme.
(6) The accounts of the Central Board shall be audited annually by the Comptroller and Auditor -
General of India and any expenditure incurred by him in connection with such audit shall be payable by
the Central Board to the Comptroller and Auditor-General of India.
(7) The Comptroller and Auditor -General of India and any person appointed by him in connection
with the audit of the accounts of the Central Board shall have the same rights and privileges and auth ority
in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of
Government accounts and, in particular, shall have the right to demand the production of books, accounts,
connected vouchers, documents and papers and inspect any of the offices of the Central Board.
(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or
any other person appointed by him in this behalf together with the audit report thereon shall be f orwarded
1. Ins. by Act 28 of 1963, s. 4.
2. Subs. by Act 33 of 1988, s. 4, for “persons” (w.e.f. 1-8-1988).
3. Subs. by s. 4, ibid., for “a chairman” (w.e.f. 1-8-1988).
4. Ins. by s. 4, ibid. (w.e.f. 1-8-1988).
5. Subs. by s. 4, ibid., for “six persons” (w.e.f. 1-8-1988).
6. Ins. by Act 16 of 1971, s. 15 (w.e.f. 23-4-1971).
7. Ins. by Act 99 of 1976, s. 19 (w.e.f. 1-8-1976).
8. Subs. by s. 19, ibid., for “and the Family Pension Scheme” (w.e.f. 1-8-1976).
9. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
10. Ins. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988).
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to the Central Board which shall forward the same to the Central Government along with its comments on
the report of the Comptroller and Auditor-General.
(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report
of its work and activities and the Central Government shall cause a copy of the annual report, the audited
accounts together with the report of the Comptroller and Auditor -General of India and the comments of
the Central Board thereon to be laid before each House of Parliament.]
1[5AA. Executive Committee .—(1) The Central Government may, by notification in the Official
Gazette, constitute, with effect from such date as may be specified therein, an Executive Committee to
assist the Central Board in the performance of its functions.
(2) The Executive Committee shall consist of the following persons as members, namely:—
(a) a Chairman appointed by the Central Government from amongst th e members of the Central
Board;
(b) two persons appointed by the Central Government from amongst the persons re ferred to in
clause (b) of sub-section (1) of section 5A;
(c) three persons appointed by the Central Government from amongst the persons referred to in
clause (c) of sub-section (1) of section 5A;
(d) three per sons re presenting the employer s elected by the Central Board from amongst the
persons referred to in clause (d) of sub-section (1) of section 5A;
(e) three persons representing the employees elected by the Central Board from amongst the
persons referred to in clause (e) of sub-section (1) of section 5A;
(f) the Central Provident Fund Commissioner, ex officio.
(3) The terms and conditions subject to which a member of the Central Board may be appointed or
elected to the Executive Committee and the time, place and procedure of the meetings of the Executive
Committee shall be such as may be provided for in the Scheme].
5B. State Board.—(1) The Central Government may, after consultation with the Government of any
State, by notification in the Official Gazette, co nstitute for that State a Board of Trustees (hereinafter in
this Act referred to as the State Board) in such manner as may be provided for in the Scheme.
(2) A State Board shall exercise such powers and perform such duties as the Central Government may
assign to it from time to time.
(3) The terms and conditions subject to which a member of a State Board may be appointed and the
time, place and procedure of the meetings of a State Board shall be such as may be provided for in the
Scheme.
5C. Board of Trustees to body corporate .—Every Board of Trustees constituted under section 5A
or section 5B shall be a body corporate under the name specified in the notification constituting it, having
perpetual succession and a common seal and shall by the said name sue and be sued.
5D. Appointment of officers .—(1) The Central Government shall appoint a Central Provident Fund
Commissioner who shall be the chief executive officer of the Central Board and shall be subject to the
general control and superintendence of that Board.
(2) The Central Government may also appoint 2[a Financial Adviser and Chief Accounts Officer s] to
assist the Central Provident Fund Commissioner in the discharge of his duties.
1. Ins. by Act 33 of 1988, s. 5 (w.e.f. 1-8-1988).
2. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988).
9
(3) The Central Board may appoint 1[, subject to the maximum scale of pay, as may be specified in
the Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund
Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and]
such other officers an d employees as it may consider necessary for the efficient administration of the
Scheme 2[, the 3[Pension] Scheme and the Insurance Scheme].
(4) No appointment to 4[the post of the Central Provident Fund Commissioner or an Additional
Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other
post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group ‘A’ or
Group ‘B’ post under the Central Government] shall be made except after consultation with the Union
Public Service Commission:
Provided that no such consultation shall be necessary in regard to any such appointment—
(a) for a period not exceeding one year; or
(b) if the person to be appointed is at the time of his appointment—
(i) a member of the Indian Administrative Service, or
(ii) in the service of the Central Government or a State Govern ment or the Central Board in a
5[Group ‘A’ or Group ‘B’ post].
(5) A State Board may, with the approval of the State Government concerned, appoint such staf f as it
may consider necessary.
(6) The method of recruitment, salary and allowances, discipline and other conditions of service of
the Central Provident Fund Commissioner, 6[and the Financial Adviser and Chief Accounts Officer] shall
be such as may be specified by the Central Government and such salary and allowances shall be paid out
of the Fund.
7[(7) (a) The method of recruitment, salary and allowances, discipline and othe r conditions of service
of the Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner,
Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers and
employees of the Central Board shall be su ch as may be specified by the Central Board in accordance
with the rules and orders applicable to the officers and employees of the Central Government drawing
corresponding scales of pay:
Provided that where the Central Board is of the opinion that it is n ecessary to make a departure from
the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior appr oval of the
Central Government.
(b) In determining the corresponding scales of pay of officers and employees under clause ( a), the
Central Board shall have regard to the educational qualifications, method of recruitment, duties and
responsibilities of such officers and employees under the Central Government and in case of any doubt,
the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.]
1. Ins. by Act 33 of 1988, s. 6. (w.e.f. 1-8-1988).
2. Subs. by Act 99 of 1976, s. 20, for “and the Family Pension Scheme” (w.e.f. 1-8-1976).
3. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
4. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988).
5. Subs. by s. 6, ibid., for “Class I or Class II post” (w.e.f. 1-8-1988).
6. Subs. by s. 6, ibid., for “,Deputy Provident Fund Commissioner and Regional Provident Fund Commissioner”
(w.e.f. 1-8-1988).
7. Subs. by s. 6, ibid., for sub-section (7) (w.e.f. 1-8-1988).
10
(8) The method of recruitment, salary and allowances, discipline and other conditions of service of
officers and employees of a State Board shall be such as may be specified by that Board, wit h the
approval of the State Government concerned.
1[5DD. Acts and proceedings of the Central Board or its Executive Committee or the State
Board not to be in validated on certain grounds .—No act done or proceeding taken by the Central
Board or the Executive Committee constituted under section 5AA or the State Board shall be questioned
on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Central
Board or the Executive Committee or the State Board, as the case may be.]
5E. Delegation.—2[The Central Board may delegate to the Executive Committee or to the Chairman
of the Board or to any of its officers and a State Board may delegate to its Chair man or to any of its
officers] subject to such conditions and lim itations, if any, as it may specify, such of its powers and
functions under this Act as it may deem necessary for the efficient administration of the Scheme 3[, the
4[Pension] Scheme and the Insurance Scheme].]
6. Contributions and matters which may be provided for in Schemes .—5*** The contribution
which shall be paid by the employer to the Fund shall be 6[ten per cent.] of the basic wages, 7[dearness
allowance and retaining allowance (if any)] for the time being pay able to each of the employees
8[(whether employed by him directly or by or through a contractor)], and the employees ’ contribution
shall be equal to the contribution payable by the employ er in respect of him and may, 9[if any employee
so desires, be an amount exceeding 6[ten per cent.] of his basic wages, dearness allowance and retaining
allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any
contribution over and above his contribution payable under this section]:
9[Provided that in its application to any establishment or class of establishments which the Central
Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette
specify, this section shall be subject to the modification that for the words 6[ten per cent.], at both the
places where they occur, the words 10[twelve per cent.]shall be substituted:]
Provided further that where the amount of any contribution payable under this Act involves a fraction
of a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a
rupee or quarter of a rupee.
11[Explanation 1 ].—For the purposes of this 12[section], dearness allowance shall be deemed to
include also the cash value of any food concession allowed to the employee.
13[Explanation 2 .—For the purposes of this 12[section], “retaining allowance” means an allowance
payable for the time being to an employee of any factory or other establishment during any period in
which the establishment is not working, for retaining his services.]
14* * * * *
1. Ins. by Act 33 of 1988, s. 7. (w.e.f. 1-8-1988).
2. Subs. by s. 8, ibid., for certain words (w.e.f. 1-8-1988).
3. Subs. by Act 99 of 1976, s. 20, for “and the Family Pension Scheme” (w.e.f. 1-8-1976).
4. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
5. The brackets and figure “(1)” omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
6. Subs. by Act 10 of 1998, s. 2, for “eight and one-third per cent.” (w.e.f. 22-9-1997).
7. Subs. by Act 46 of 1960, s. 4, for “and the dearness allowance” (w.e.f. 31-12-1960).
8. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
9. Subs. by Act 33 of 1988, s. 9, for certain words (w.e.f. 1-8-1988).
10. Subs. by Act 10 of 1998, s. 2, for “ten per cent.” (w.e.f. 22-9-1997).
11. The Explanation re-numbered as Explanation1 by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).
12. Subs. by Act 28 of 1963, s. 5, for “sub-section” (w.e.f. 30-11-1963).
13. The Explanation ins. by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).
14. Omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
11
1[6A. Employees ’ Pension Scheme .—(1) The Central Government may, by notification in the
Official Gazette, frame a scheme to be called the Employees ’ Pension Scheme for the purpose of
providing for—
(a) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower’s pension, children pension or orphan pension payable to the beneficiaries
of such employees.
(2) Notwithstanding anything contained in section 6, there shall be established, as soon as may be
after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in
respect of every employee who is a member of the Pension Scheme,—
(a) such sums from the employer ’s contribution under section 6, not exceeding eight and
one-third per cent. of the basic wages, dearness allowance and retaining allowance, if any, of the
concerned employees, as may be specified in the Pension Scheme;
(b) such sums as are payable by the employers of exempted establishments under sub -section (6)
of section 17;
(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of
the Pension Fund;
(d) such sums as the Central Government may, after due appropriation by Parliament by law in
this behalf, specify.
(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as
the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall stand
transferred to, and all liabilities under the ceased scheme shall be enforceable against , the Pension Fund
and the beneficiaries under the ceased scheme shall be entitled to draw the benefit s, not less than the
benefits they were entitled to under the ceased scheme, from the Pension Fund.
(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may
be specified in the Pension Scheme.
(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters
specified in Schedule III.
(6) The Pension Scheme may provide that all or any of its provisions shall take effect either
prospectively or retrospectively on such date as may be specified in that behalf in that Scheme.
(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it is made,
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the scheme or both Houses agree that the scheme should not be made, the scheme shall
thereafter have effect only in such modified form or be of no effect, as the may be; so , however, that any
such modification or annulment shall be without prejudice to the validity of anything previously don e
under that Scheme.]
2[6C. Employees ’ Deposit linked Insurance Scheme .—(1) The Central Government may, by
notification in the Official Gazette, frame a scheme to be called the Employees ’ Deposit-linked Insurance
Scheme for the purpose of providing life insurance benefits to the employees of any establishment or
class of establishments to which this Act applies.
1. Subs. by Act 25 of 1996, s. 5, for sections 6A and 6B (w.e.f. 16-11-1995).
2. Ins. by Act 99 of 1976, s. 21 (w.e.f. 1-8-1976).
12
(2) There shall be established, as soon as may be after the framing of the Ins urance Scheme, a
Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of
every such employee in relation to whom he is the employer, such amount, not being more than one per
cent. of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time
being payable in relation to such employee as the Central Government may, by notification in the Official
Gazette, specify.
Explanation.—For the purposes of this sub -section, the expr essions “dearness allowance ” and
“relating allowance” have the same meanings as in section 6.
1* * * * *
(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceeding
one-fourth of the contribution which he is required to make under sub -section ( 2), as the Central
Government may, from time to time, determine to meet all the expenses in connection with the
administration of the Insurance Scheme other than the expenses towards the cost of any benefits pr ovided
by or under that scheme.
1* * * * *
(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as
may be specified in the Insurance Scheme.
(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.
(7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively
or retrospectively on such date as may be specified in this behalf in that Scheme.]
2[6D. Laying of schemes before Parliament .—Every scheme framed under section 5, section 6A
and section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, while
it is in session, for a total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the scheme, or both
Houses agree that the scheme should not be framed, th e scheme shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that scheme.]
7. Modi fication of scheme .—(1) The Central Government may, by notification in the Official
Gazette, add to 3[amend or vary, either prospectively or retrospectively, the Scheme, the 4[Family
Pension] Scheme or the Insurance Scheme, as the case may be].
5[(2) Every notification issued under sub-section (1) shall be laid, as soon as may be after it is issued,
before each House of Parliament , while it is in session, for a total period of thirty days, which may be
comprised in one session or in two or more successive s essions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the notification, or both Houses agree that the notification should not be issued, the
notification shall thereafter have effect only in such modified form or be of no effect, as the case may be;
so, however, that any such modification or annulment shall be without prejudice to the validity of
anything previously done under that notification.]
1. Omitted by Act 25 of 1996, s. 6 (w.e.f. 16-11-1995).
2. Ins. by Act 4 of 1986, s. 2 and Schedule (w.e.f. 15-5-1986).
3. Subs. by Act 99 of 1976, s. 22, for “amend or vary the Scheme or the Family Pension Scheme, as the case may be”
(w.e.f. 1-8-1976).
4. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
5. Subs. by Act 4 of 1986, s. 2 and Schedule, for sub-section (2) (w.e.f. 15-5-1986).
13
1[7A. Determination of moneys due from employer s.—2[(1) The Central Provident Fund
Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund
Commissioner, any Regional Provident Fund Commissioner , or any Assistant Provident Fun d
Commissioner may, by order,—
(a) in a case where a dispute arises regarding the applicability of this Act to an establishment,
decide such dispute; and
(b) determine the amount due from any employer under any provision of t his Act, the Scheme or
the 3[Pension] Scheme or the Insurance Scheme, as the case may be,
and for any of the aforesaid purposes may conduct such inquiry as he may deem necessary];
(2) The officer conducting the inquiry under sub -section (1) shall, for the purposes of such inquiry,
have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), for
trying a suit in respect of the following matters, namely:—
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit;
(d) issuing commissions for the examination of witnesses;
and any such inquiry shall be deemed to be a judicial proceeding within the meaning of sections 193 and
228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860).
(3) No order 4*** shall be made under sub-section (1), unless 5[the employer concerned] is given a
reasonable opportunity of representing his case.
6[(3A) Where the employer, employee or any other person required to attend the inquiry under
sub-section ( 1) fails to attend such inquiry without assigning any valid reason or fails to produce any
document or to file any report or return when called upon to do so, the officer conducting the inquiry may
decide the applicability of the Act or determine the amount due from any employer, as the case may be,
on the basis of the evidence adduced during such inquiry and other documents available on record.]
7[(4) Where an order under sub -section (1) is passed against an employer ex parte, he may, within
three months fr om the date of communication of such order, apply to the officer for setting aside such
order and if he satisfies the officer that the show cause notice was not duly served or that he was
prevented by any sufficient cause from appearing when the inquiry wa s held, the officer shall make an
order setting aside his earlier order and shall appoint a date for proceeding with the inquiry:
Provided that no such order shall be set aside merely on the ground that there has been an irregularity
in the service of the show cause notice if the officer is satisfied that the employer had notice of the date of
hearing and had sufficient time to appear before the officer.
Explanation.—Where an appeal has been preferred under this Act against an order passed ex parte
and such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn the
appeal, no application shall lie under this sub-section for setting aside the ex parte order.
1. Ins. by Act 28 of 1963, s. 6 (w.e.f. 30-11-1963).
2. Subs. by Act 33 of 1988, s. 10, for sub-section (1) (w.e.f. 1-8-1988).
3. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
4. The words “determining the amount due from employer” omitted by Act 33 of 1988, s. 10. (w.e.f. 1-8-1988).
5. Subs. by s. 10, ibid., for “the employer” (w.e.f. 1-8-1988).
6. Ins. by s. 10, ibid. (w.e.f. 1-8-1988).
7. Subs. by s. 10, ibid., for sub-section (4) (w.e.f. 1-8-1988).
14
(5) No order passed under this section shall be set aside on any ap plication under sub -section ( 4)
unless notice thereof has been served on the opposite party.]
1[7B. Review of o rders passed under section 7A .—(1) Any person aggrieved by an order made
under sub -section ( 1) of section 7A, but from which no appeal has been preferred under this Act, and
who, from the discovery of new and important matter or evidence which, after the exercise of due
diligence was not within his knowledge or could not be produced by him at the time when the order was
made, or on account of some mistake or error apparent on the face of the record or for any other sufficient
reason, desires to obtain a review of such order may apply for a review of that order to th e officer who
passed the order:
Provided that such officer may also on his own motio n review his order if he is satisfied that it is
necessary so to do on any such ground.
(2) Every application for review under sub -section (1) shall be filed in such form and manner and
within such time as may be specified in the Scheme.
(3) Where it appea rs to the officer receiving an application for review that there is no sufficient
ground for a review, he shall reject the application.
(4) Where the officer is of opinion that the application for review should be granted, he shall grant the
same:
Provided that,—
(a) no such application shall be granted without previous notice to all the parties before him to
enable them to appear and be heard in support of the order in respect of whi ch a review is applied
for, and
(b) no such application shall be granted on the ground of discovery of new matter or evidence
which the applicant alleges was not within his knowledge or could not be produced by him when the
order was made, without proof of such allegation.
(5) No appeal shall lie against the order of the office r rejecting an application for review, but an
appeal under this Act shall lie against an order passed under review as if the order passed under review
were the original order passed by him under section 7A.
7C. De termination of escaped amount .—Where an order determining the amount due from an
employer Excerpt shown. Open the full act in Lexace.