Employees' Provident Funds Scheme 1952
Short title and application :- (1) This Scheme may be called the Employee’s Provident Funds Scheme, 1952.
(2) Save as otherwise provided in the Scheme, this Chapter and Chapters Ii and III shall come into force at once and the remaining provisions shall come into force on such date or dates as the Central Government may by notification in the Official Gazette appoint and different dates may be appointed for different provisions.
(3) (a) Subject to provisions of Sections 16 and 17 of the Act, this Scheme shall apply to all factories and other establishments ot which the Act applies or is applied under sub_section (3) of Section 1 or Section 3 thereof :
Provided that the
Definitions :- In this Scheme, unless the context otherwise requires :-
(a) “Act means the Employees’ Provident Funds and Family Pension Fund Act, 1952 (19 of 1952);
(b) [x x x]
(c) “Children” means legitimate children and includes adopted children if the Commissioner is satisfied that under the personal law of the member adoption of a child is legally recognised;
(d) “Commissioner” means a Commissioner for Employees’ Provident Fund appointed under Section 5D of the Act and includes a Deputy Provident Fund Commissioner and a Regional Provident Fund Commissioner;
Election of certain Members of the Executive Committee :- (1) The Chairman of the Central Board shall call a meeting of the Board for the purpose of election to the Executive Committee of the members representing the employer or, as the case may be, the employees referred to in clauses (d) and (e) of sub_section (2) of Section 5AA of the Act.
(2) In the meeting referred to in sub_paragraph (1), the Chairman of the Central Board may invite the members to propose the names of those members, who represent the employers or, as the case may be, the employees and every such proposal shall be duly seconded by another member of the Board.
(3) If the number of persons propsed and seconded for election under sub_paragraph (
Declaration by persons taking up employment after the Fund has been established :- The employer in relation to a factory or other establishment shall, before taking any person into employment, as him to state in writing whether or not he is a member of the Fund and if he is, as for the Account Number and/or the name and particulars of the last employer. If he is unable to furnish the Account Number, he shall, require such person to furnish and such person shall, on demand, furnish to him for communication to the Commissioner, particulars regarding himself and his nominee required for the Declaration Form. Such employer shall enter the particulars in the Declaration Form and obtain the signature or thumb impression of the person concerned :
Provided that
Preparation of Contribution Cards :- The employer shall prepare a contribution card in Form 3 of in Form 3-A as may be appropriate, in respect of every employee in his employement at the commencemnt of the Scheme or who is taken into employment after that date and who is required or entitled to become or is a member of the Fund including those who produce an Account Number and inrespect of whom no fresh Declaration Form is prepared :
Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension Scheme, 1971, the aforesaid Forms shall also contain such particulars as are necessary to comply with the requirements of that Scheme.
Duties of Employers :- (1) Every employer shall send to the Commissioner, within fifteen dayso of the commencement of this Scheme, a consolidated return in such form as the Commissioner may specify, of the employees required or entitled to become members of the Fund showing the basic wages, retaining allowance (if any) and dearness allowance including the cash value of any food concession paid to each of such employees :
Provided that if there is no employee who is required or entitled to become a member of the Fund, the employer shall send a ‘NIL’ return.
(2) Every employer shall send to the Commissioner within fifteen days of the close of each month a return--
Employer to furnish particulars of ownership :- Every employer in relation to a factory or other establishment to which the Act applies on the date of coming into force of the Employees’ Provident Funds [Tenth Amendment] Scheme, 1961, or is applied after that date, shall furnish in duplicate to the Regional Commissioner in Form No. 5-A annexed hereto, particulars of all the branches and departments, owners, occupiers, directors, partners, manager or any other person or persons who have the ultimate control over the affirs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Regional Commissioner by registered post and in such other manner as may be specified by the Regional Commissioner :
36-B Duties of Contractors :- Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the recoveries of contributions in respect of employees employed by or through him and shall also furnish to him such information as the principal employer is required to furnish under the provisions of the Scheme to the Commissioner.
Allotment of Account Numbers :- On receipt of the information referred to in Paragraphs 33, 34 and 36, the Commissioner shall promptly allot an Account Number to each employee qualifying to become a member and shall communicate the Account Number to the member through the employer.
Mode of payment of contributions :- (1) The employer shall, before paying the member his wages in respect of any period or part of period for which contributions are payable, deduct the employee’s contribution from his wages which together with his own contribution as well as an administrative charge of such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash vaue of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee, and in respect of which provident fund contributions are payable as the Central Government may fix. He shall within fifteen days of the close of every month pay the same to the Fund by separate bank drafts or cheques on account of contribution and administrative charge :
Fixation of administrative charges :- The Central Government may, in consultation with the Central Board and having regard to the resources of the Fund available for meeting its normal administrative expenses, fix the percentage of administrative charges payable under sub_paragraph (1) of Paragraph 38 above.
Contributions to be entered in the contribution card :- The amount recovered every month from the wages of an employee as well as the contributioj made by the employer in respect of each such employee shall be entered by the employer every month in the contribution card opened in the name of each member under this Scheme.
Supply of pass books to the members :- With effect from such date as the Commissioner may specify in this behalf, every employer shall, on an employee becoming a member of the fund, provide a pass book to every such member and maintain the same in such form and manner as the Commissioner may direct from time to time :
Provided that different dates may be specified for different industries or classes of establishments or for different areas.
Currency of contribution cards :- The contribution cards issued under this Scheme shall be current for one year :
Provided that the said period of one year may commence and terminate at such different times in different factories and other establishments as may be decided by the Commissioner from time to time :
Provided further thatthe cards issued,--
(i) in respect of the first contribution period, or
(ii) in respect of the contribution period immediately preceding the date from which the establishment is notified as an annual posted establishment,
may be for a period which may be less or more than a year.Renewal of contribution cards :- An employer shall, on or before the expiration of the period of currency of the contribution card, prepare in respect of each member employed by him a card in Form 3 or Form 3-A as may be appropriate, for the next period of currency :
Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees’ Family Pension Scheme, 1971, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme.
Submission of contribution cards to the Commissioner :- Every employer shall within one month from the date of expiration of the period of currency of the contribution cards in respect of members employed by him, send the contribution cards to the Commissioner together with a statement in Form 6 :
Provided that where a member leaves service, the employer shall send the contribution card in respect of such member before the twentieth day of the month following that in which the member left the service :
Provided further that in the case of any such employee who has become a member of the Family Pension Scheme Fund, under the Employees Family Pension Scheme, 1971, the aforesaid Form shall also contain such particula
Custody of contribution cards :- The employer shall retain in his custody the contribution cards in respect of each member employed by him and shall take every precaution against losss or damage of the contribution cards.
Inspection of cards by members :- Any member making a request in this behalf to the employer shall be permitted to inspect his cards himself or to have the same inspected by any person duly authorised by him in writing to do so, within 72 hours of making such request provided that no such request shall be entertained more than once in every two calendar months.
Production of cards and records for inspection by the Commissioner or Inspector :- Every employer shall, whenever the Commissioner or any other officer authorised by him in this behalf or an Inspector so requests, either in person or by notice in writing, produce before the Commissioner, Officer, or Inspector, as the case may be, the records of any member employed by him and any card then in his possession, and if so required, by the said Commissioner, Officer or Inspector shall deliver such record to the said Commissioner, Officer or Inspector, who may, if he thinks fit, retain the records provided that he shall grant a receipt for every record retained by him.
Supply of cards and Forms to employers :- The Commissioner shall supply to employers, free of charge on demand contribution cards, pass book, declaration forms and other forms referred to in this Scheme :
Provided that if any employer desires to obtain any cards, pass books or forms in excess of the number which the Commissioner considers to be the requirements of the employer, the Commissioner may, if he thinks fit, supply such extra cards, pass books or forms and make such charge therefor as he considers reasonable.
Current Account :- The Commissioner shall deposit the Bank Drafts or Cheques received from the employers in the Reserve Bank or the State Bank of Inida in the Current Account of the Fund.
Administration Accounts :- A separate account shall be kept called the “Central Administration Account” for recording all administrative expenses of the Fund including such administrative charges as the Fund may be authorised to levy.
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Provident Fund Account :- The aggregate amount received as the employers and the employees Contributions to the Fund shall be credited to an account to be called the “Provident Fund Account”.
*[Interest Account.—All interest, rend and other income realised, and net profits or losses, if any, from the sale or investments not including therein the transactions of the Administration Account, shall be credited or debited, as the case may be, to an account called "Interest Account", and the brokerage and commission of the purchase and sale of securities and other investments, shall be included in the purchase or sale price, as the case may be, and not separately charged to the "Interest Account".
Investment of moneys belonging to Employees’ Provident Fund :- (1) All moneys belonging to the Fund shall be deposited in the Reserve Bank or the State Bank of India or in such other Scheduled Banks as may be approved by the Central Government from time to time or shall be invested, subject to such directions as the Central Government may from time to time give, in the securities mentioned or referred to in clauses (a) to (d) of Sec. 20 of the Indian Trusts Act, 1882 (2 of 1882), provided that such securities are payable both in respect of capital and in respect of interest in India.
(2) All expenses incurred in respect of, and loss, if any, arising from, any investment shall be charged to the Fund.
Disposal of the Fund :- (1) Subject to the provisions of the Act and of this Scheme, the Fund, not including therein the Administratiion Account, shall not, except with the previous sanction of the Central Government, be expended for any purpose other than the payment of the sums standing to the credit of individual members of the Fund or to their nominees or heirs or legal representatives in accordance with the provisions of this Scheme.
(2) The Fund shall be operated upon by such officers as may be authorised in this behalf by the Central Board.
Expenses of Administration :- (1) All expenses relating to the administration of the Fund including those incurred on Regional Committee shall be met from the Fund.
(2) All expenses of administration of the Fund, including the fees and allowances, of the trustees of the Central Board and salaries, leave and joining time allowances, travelling and compensatory allowances, gratutites and compenssionate allowances, pensions, contributions to Provident Fund and other benefit fund instituted for the officers and employees of the Central Board, the cost of audit of the accounts, legal expenses and cost of all stationery and forms incurred in respect of the Central Board, cost and all expenses incurred in connection with the construction of office buildings and
Form and manner of maintenance of Accounts :- The Central Board shall maintain proper Accounts of its income and expenditure, including its Administrative Accounts, in Form 10, and the balance sheet in Form 11. The accounts shall be prepared for the financial year and the books shall be balanced on the thirty first March each year.
Audit :- (1) The accounts fo the Fund, including the Administration Account shall be audited in accordance with the instructions issued by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The charges on account of audit shall be paid out of the Administration Account.
Inter-State transfer of members :- (1) Where a member of the Fund ceases to be employed in one region and secures employment in another region in an establishment to which this Scheme applies or which is an exempted establishment or which is not covered under the Act but has a provident funds scheme of its own, he may apply to the Commissioner within whose jurisdiction he was previously employed, in such form as the Commissioner may specify for the transfer of balance of the Provident Fund in his existing account to his account in the other region.
(2) Where a member of the Fund ceases to be employed in one establishment and secures employment in another establishment in the same region, he may apply to the Commissioner of the region, in such form as the
Budget :- (1) The Commissioner shall place before the Central Board each yar before the first fortnight of February, a budget showing separately the probable receipts from the contributions and from the levy of administrative charges and the expenditure which it proposes to incur during the following financial year. The budget as approved by the Central Board shall be submitted for sanction to the Central Government within a month of its being placed before the Central Board.
(2) The Central Government may make such modifications in the budget as it considers desirable before sanctioning it. Where a member of the Fund ceases to be employed in one region and secures employment in another region in an establishment to which this Scheme applies or which is
Member’s Accounts :- (1) An account shall be opened in the office of the Fund in the name of each member in which it shall be credited :-
(a) his contributions ;
(b) the contributions made by the employer in respect of him ; and
(c) interest as provided in Paragraph 60.
(2) All items of account shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise to be ignored.
(3) On receipt of the contribution card or cards of a member from his employer or employers at the end of the period of currency of the contr
Interest :- (1) The Commissioner shall credit to the account of each member interest of such rate as may be determined by the Central Government in consultation with the Central Board.
(2) (a) Interest shall be credited to the member’s account on monthly running balances basis with effect from the last day in each year in the following manner :
(i) On the amount at the credit of a member on the las day of the preceeding year, less any sums withdrawn during the current year interest for twelve months;
(ii) on sums withdrawn during the current year - interest from te beginning of the current year up to the last day of the month preceding the month of withdrawal;
Nominations :- (1) Each member shall make in his declaration in Form 2, a nomination conferring the right to receive the amount that may stand to his credit in the Fund in the event of his death before the amount standing to his credit has become payable, or where the amount has become payable before payment has been made.
(2) A member may in his nomination distribute the amount that may stand to his credit in the Fund amongst his nominees at his own discretion.
(3) If a member has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such member in favour of a person not belonging to his family shall be invalid.
Financing of Members Life Insurance Policies :- (1) Where a member desires that premium due on the policy of Life Insurance taken by him on his own life should be financed from his Provident Fund Account, he may apply in such form and in such manner as may be prescribed by the Commissioner.
(2) On receipt of such application, the Commissioner, or where so authorised by the Commissioner, any other officer subordinate to him may make payment on behalf of the member to the Life Insurance Corporation of India towards premium due on his policy :
Provided that no such payment shal be made unless the premium is payable yearly.
(3) Any payment made under sub_paragraph (2) shall be
Conversion of policy into a paid-up one and payment of late fee, etc :- Where a policy of Life Insurance of a member is financed from his Provident Fund Account, the Commissioner may.
(a) convert the Insurance Policy into a paid-up one when the credit in his Provident Fund on account of his share become inadequate for the payment of any premium ;
(b) pay late fee and interest out of hte member’s own contribution in his Provident Fund Account, if any premium cannot be remitted to the Life Insurance Corporation in time because of delay in sending to the Commissioner the policy duly assigned to the Central Board or any other reasons for which the member or his employer may be responsible.
Assignment of Policies to the Fund :- (1) The policy shall, within six months of the first payment under Paragraph 62, be assigned by endorsement thereon, to the Cntral Board and shall be delivered to the Commissioner.
(2) Notice of the assignment of the policy shall be given by the member to the Life Insurance Corporation and the acknowledgement of the said notice by the Corporation shall be sent to the Commissioner within three months of the date of assignment.
(3) The terms of the policy shall not be altered nor shall the policy be exchanged for another policy without the prior consent of the Commissioner to whom th details of the alteration or of the new policy shall be furnished in such form as he may specify
Bonus on policy to be adjusted against payment made from the Fund :- So long as the policy remains assigned to the Central Board, any bonus accruing on it may be drawn by the Central Board or where authorised by the Central Board by the Commissioner, and adjusted against the payment made on behalf of the member under Paragraph 62.
Reassignment of policies :- (1) Where the accumulations standing to the credit of the member are withdrawn under Paragraph 69 or when the member repays to the Fund the amounts of premium paid by the Board with interest thereon at the rate provided in Paragraph 60, the Central Board or where authorised by the Central Board, the Commissioner shall reassign by endorsement thereon the policy to the member together with a signed notice of reassignment address to the Life Insurance Corporation.
(2) If the member dies before the policy has been reassigned under sub_paragraph (1), the Central Board or where authorised by the Central Board, the Commissioner, shall reassign by the endorsement thereon, the policy to the nominee of the member if a valid nomination s
Recovery of amounts paid towards Insurance Policies :- If a policy matures or otherwise falls due for payment during the currency of its assignment, the Central Board or, where so authorised by the Central Board, the Commissioner shall realise the amount assured together with bonus, if any, assrued thereon place to the credit of the member the amount so realised, or the whole of the amount paid from the Fund in respect of the policy with interest thereon, whichever is less, and refund the balance, if any, to the member.
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Withdrawal from the Fund for the purchase of a dwelling house/flat or for the construction of a dwelling house including the acquisition of a suitable site for the purpose :- (1) The Commissioner, or where so authorised by the Commissioner, any officer subordinate to him, may on an application from a member in such form as may be prescribed and subjet to the conditions prescribed in this Paragraph sanction from the amount standing to the credit of the member in the Fund, a withdrawal--
(a) for purchaing a dwelling house/flat, including a flat a building owned jointly with others (outright or on hire purchase basis), or for constructing dwelling house including the acquisition of a suitable site for the purpose from the Central Government, the State Gover
68.BB. Withdrawal from the Found for repayment of loans in special cases :- (1) (a) The Commissioner, or, where so authorised by the Commissioner, any officer subordinate to him, may on an appliction from a member, sanction from the amount standing to the credit of the member, sanction from the amount standing to the credit of the member in the Fund withdrawal for the repayment, wholly or partly, of any outstanding principal and interest of a loan obtained from a State Government, co_operative Soceity, Housing Board, Muncipal Corporation or any body similar to the Delhi Development Authority solely for the purposes specified in sub_paragraph (i) of Pargraph 68-B.
(b) The amount of withdrawal shall not exceed the member’s basic wages and dearness al
[x x x]
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Computation of period of membership :- In computing the period of membership of the Fund of a member under Paragraphs 68-B, 68-BB and 68-K, his total service exclusive of eriods of breaks under the same employer of factory/establishment before this scheme applied to him, as well as the periods, of his membership, whether fo the Fund or of private provident fund of exempted factories/establishments or as an employee exempted under Paragrah 27 or 27-A, as the case may be, immediately preceding the current membersip of the Fund, shall be included.
Provided that the member has not served his membership by withdrawal of his provident fund during such period.
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Grant of advances in special cases :- (1) In case a factory or other establishment has been locked up or closed down for more than fifteen days and its employees are rendered unemployed without any compensation or in case an employee does not receive his wages for a continuous period of two months or more, these being for reasons other than a strike, the Commissioner or where so authorised by the Commissioner, any officer subordinate to him may on an application from an employee, who is a member of the Fund, in such form as may be prescribed, authorise payment to him, of one or more non-recoverable advances from his provident fund account not exceeding his own total contribution including interest thereon up to the date the payment has been authorised.
(
[x x x]
Advance from the Fund for illness in certain cases :- (1) A member may be allowed non-refundable advance from his account in the Fund incases of :- (a) hospitalisation lasting for one month or more, or (b) major surgical operation in a hospital, or (c) suffering from T.B. Leprosy, paralysis, cancer, mental derangement or heart ailment and having been granted leave by his employer for treatment of the said illness.
(2) The advance shall be granted if--
(a) the employer certifies that the Employees’ State Insurance Scheme facility and benefits thereunder are not actually available to the facility and benefits thereunder are not actually available to the member or the member produces a certificate from the Emp
Advance from the Fund for marriages or post-matriculation education of children :- (1) The Commissioner or where so authorised by the Commissioner, an officer subordinate to him may on an application from a member, authorise payment to him or her of a non-refundable advance from his or her provident fund account not exceeding fifty per cent of his or her credit in the Fund, on the date of such authorisation, for his or her own marriage, the marriage of his or her daughter, son, sister or brother or for the post-matriculation education of his or her son or daughter.
(2) No advance under this Paragraph shall be sanctioned to a member unless--
(a) he has completed seven years membership of the Fund; and
Grant of advances in abnormal conditions :- (1) The Commissioner or where so authorised by the Commissioner, any officer subordinate to him may, on an application from a member whose property, movable or immovable, has been damaged by calamity of exceptional nature, such as floods, earthquakes or riots, authorise payment to him from the provident fund account, a non-refundable advance, of rupees five thousand or fifty per cent of his own totoal contribution including interest thereon standing to his credit on the date of such authorisation. Whichever is less, to meet any unforeseen expenditure.
(2) No advance under sub_paragraph (1) shall be paid unless--
(i) the State Government has declared that the calamity has
Grant of advance to members affected by cut in the supply of electricity :- A member may be allowed a non-refundable advance from his account in the Fund, if there is a cut in the supply of electricity to a factory or establishment in which he is employed on the following conditions, namely :-
(a) The advance may be granted only to a member whose total wages for any one month commencing from the month of January, 1973 were three fourths or less than fourths of wages for a month.
(b) The advance shall be restricted to the amount of wages for a month or Rs. 300 or the amount standing to the credit of the member in the fund as his own share of contributed with interest thereon, whichever is less.
Grant of advance to members who are physically handicapped :- (1) A member, who is physically handicapped, may be allowed a non-refundable advance from his account in the Fund, for purchasing an equipment required to minimise the hardship on account of handicap.
(2) No advance under sub_paragraph (1) shall be paid unless the member produces a medical certificate from a competent medical practitioner to the statisfaction of the Commissioner or such other officer as may be authorised by him in this behalf to the effect that he is physically handicapped.
(3) The amount advanced under this Paragraph shall not exceed the members basic wages and dearness allowance for six months or his own share of contributions with in
Withdrawal which one year before the retirement :- The Commissioner, or whoever so authorised by the Commissioner, any officer subordinate to him, may, on an application from a member in such form as may be prescribed, permit withdrawal of up to 90 per cent of the amount standing at his credit, at any time after attainment of the age of 54 years by the member or within one year before his actual retirement on superannuation whichever is later.
* [Option for withdrawal at the age of 55 years for investment in Varishtha Pension Bima Yojana.—The Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, may, on an application from a member in such form as may be prescribed, permit withdrawal of up to 90 per cent of the amount standing at his credit at any time after attaining the age of 55 years by the member, to be transferred to the Life Insurance Corporation of India for investment in Varishtha Pension Bima Yojana.]
Payment of withdrawal or advance :- The payment of withdrawal or advance under Paragraphs 68-B, 68-H, 68-J, 68-K, 68-L, 68-M, 68-N and 68-NN of the Scheme may be made, at the option of the member--
(i) by postal money order ; or
(ii) by deposit in the payee’s bank account in any Scheduled Bank or in co_operative Bank (including the Urban co_operative Bank) or any post office; or
(iii) through the employer.
Circumstances in which accumulations in the Found are payable to a member :- (1) A member may withdraw the full amount standing to his credit in the Fund--
(a) on retirement from service after attaining the age of 55 years :
Provided that a member, who has not attained the age of 55 years at the time of termination of his service, shall also be entitled to withdraw the full amount standing to his credit in the Fund if he attains the age of 55 years before the payment is authorised;
(b) on retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment or where an establishment has
Accumulation of a deceased member - to whom payable :- On the death of member before the amount standing to his credit has become payable, or where the amount has become payable before payment has been made--
(i) if a nomination made by the member in accordance with paragraph 61 subsists, the amount standing to his credit in the Fund or that part thereof to which the nomination relates, shall become payable to his nominee or nominees in accordance with such nomination; or
(ii) if no nomination subsists or if the nomination relates only to a part of the amount standing to his credit in the Fund, the whole amount or the part thereof to which the nomination does not relate, as the case may be, shall become payable to
Payment of provident fund accumulations in the case of a person charged with the office of murder :- (1) If a person, who in the event of the death of member of the fund is eligible to receive provident fund accumulations of the deceased member under paragraph 70, is charged with the offence of murdering the member or abetting in the commission of such an offence, his claim to receive the share of provident fund shall remain suspended till the conclusion of the criminal proceedings initiated against him for such offence.
(2) If on the conclusion of the criminal proceedings referred to in subparagraph (1), the person concerned is,--
(a) convicted for the murder or abetting the murder of the member, he shall be deba
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Payment of Provident Fund :- (1) When the amount standing to the credit of a member, becomes payable, it shall be the duty of the Commissioner to make prompt payment as provided in this Scheme, incase there is no nominee in accordance with this Scheme, or there is no person entitled to receive such amount under sub_paragraph (ii) of paragraph 70, the Commissioner may, if the amount to the credit of the Fund does not exceed Rs. 10,000 and if satisfied after enquiry above the title of the claimant, pay such amount to the claimant.
(2) If any portion of the amount, which has become payable, is in dispute or doubt, the Commissioner shall make prompt payment of that portion of the amount in regard to which there is no dispute or doubt, the balance being adjus
Annual statement of member’s account :- (1) As soon as possible after the close of each period of currency of contribution card the Commissioner shall send to each member through the employer of the factory or other establishment in which he was last employed a statement of his account in the Fund showing the opening balance at the beginning of the period, amount contributed during the year, the total amount of interest credited at the end of the period or debited in the period and the closing balance at the end of the period.
(2) Members should satisfy themselves as to the correctness of the annual statement and any error should be brought to the notice of the Commissioner within six months of the receipt of the statement.
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Annual report on the work and activities of the Board and its audited accounts :- (1) The annual report on the work and activities of the Central Board and its audited accounts together with the report of Comptroller and Auditor General of India shall be considered by the Executive Committee and shall be placed for adoption at a meeting of the Board to be held before the Tenth of December following the close of the financial year concerned :
Provided that if the report of the Comptroller and Auditor-General is not received by the First of December following the close of the financial year to which it pertains, the audited accounts together with report of the Comptroller and Auditor General may be placed before the Executive Committee/Board separately fro
Issue of copies of Member’s Accounts, Annual Reports, etc. :- The Commissioner shall furnish copies of the member’s account and of the annual reports of the Fund to any employer, or member on written application and on payment of such fees and subject to such conditions as may be specified by the Central Board in this behalf.
Punishment for failure to pay contribution, etc. :- If any person--
(a) deducts or attempts to deduct from the wages or other remuneration of a member the whole or any part of the employer’s contribution, or
(b) fails or refuses to submit any return, statement or other document required by this Scheme or submits a false return, statement or other document, or makes a false declaration, or
(c) obstructs any Inspector or other official appointed under the Act or this Scheme in the discharge of his duties or fails to produce any record for inspection by such Inspector or other official, or
(d) is guilty of contravention of or non
Conduct of business of the Central Baord :- (1) All orders and other instruments shall be made and executed in the name of the Central Board and shall be authenticated by such person and in such manner as the Central Board may specify.
(2) All contracts and assurances of property shall be expressed to be made by the Central Board and shall be executed on behalf of the Central Board by the Commissioner.
Power to issue directions :- (1) The Central Government may, from time to time, issue such directions to State Government the Central Board or any other authority, under this Act or Scheme as it may consider necessary for the proper implementation of the Scheme or for the purpose of removing any difficulty which may arise in the administration thereof including difficulties in the matter of payment of accumulations in the Fund to members after they cease to be such members.
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(3) The authority to whom any directions are issued under this paragraph shall comply with such directions.
Special provisions relating to factories and other establishments in respect of which applications for exemption are received :- Notwithstanding any thing contained in this Scheme, the Commissioner may, in relation to a factory or other establishment in respect of which an application for exemption under Section 17 of the Act has been received relax pending the disposal of the application the provisions of this Scheme in such manner as he may direct.
Filling application for review :- Any person aggrieved by an order made under sub_section (1) of Section 7-A and who desires to obtain a review of such order may apply for a review of such order may apply for a review of that order, as provided in sub_section (1) of Section 7-B of the Act in Form 9 to the officer who passed such order :
Provided that no application for review of an order will be entertained by the concerned officer, unless the application for review is submitted within 45 days from the date of making such order.
Time limit for communicating the views of the Central Board to the appropriate Government on a proposal of grant of exemption to an establishment :- When an appropriate Government consults the Central Board with regard to its proposal for grant of exemption to an establishment under Section 17 of the Act, the Board shall give its views on the proposal within a period of three months from the date on which such proposal is received by it.
Regional committee :- (1) Until such time as a State Board is constituted for a State, the Chairman of the Central Board may, by notification in the Official Gazette, set up a Regional Committee for the State, which will function under the control of the Central Board. The Regional committee shall consist of the following persons, namely :-
(a) a Chairman appointed by the Chairman of the Central Board;
(b) Two persons appointed by the Chairman of the Central Board on the recommendation of the State Government;
(c) two persons representing employers in the industries or other establishments to which this Scheme applies in the State appointed by the Chairman of the Central Bo
Terms of Office :- (1) The term of office of the Chairman, Vice-Chairman and every Trustee of the Central Board referred to in clauses (b), (c), (d) and (e) of sub_section (1) of section A of the act shall be five years commencing on and from the date on which their appointment is notified in the Official Gazette.
(2) The term of office of the Chairman and every Member of the Executive Committee referred to in clauses (b), (c),(d) and (e) of sub_section (2) of Section AA shall be two years and six months commencing on and from the date on which their appointment is notified in the Official Gazette.
(2-A) The term of office of the Chairman and every Member of a Regional Committee referred to in clauses (b), (c), an
Resignation :- A trustee of the Central Board or a member of the Executive Committee may resign his office by letter in writing addressed to the Central Government and his office shall fall vacant from the date on which his resignation is accepted by the Central Government.
A member of a Regional Committee may resign his office by a letter in writing addressed to the Chairman, Central Board, and his office shall fall vacant from the date on which his resignation is accepted by the Chairman, Central Board.
Cessation and restoration of trusteeship :- If a trustee or a member of the Executive Committee or a Regional Committee fails to attend three consecutive meeting of the Board or Committee, as the case may be, without obtaining leave of absence from the Chairman of the Board or Committee, he shall cease to be a trustee or member of the Committee :
Provided that the Central Government in the case of the Central Board or the Executive Committee and the Chairman, Central Board, in the case of any Regional Committee may restore him to trusteeship or membership of the Executive Committee or of the Regional Committee, as the case may be, if it is satisfied that there were reasonable grounds for the absence.
Disqualifications for trusteeship or membership of Regional Committee :- (1) A person shall be disqualified for being appointed as, or for being a trustee or member of a Regional Committee :-
(i) if he is declared to be of unsound mind by a competent Court; or
(ii) if he is an undischarged insolvent ; or
(iii) if before or after the commencement of the Act he has been convicted of an offence involving moral turpitude; or
(iv) if he as an employer in relation to an exempted establishment or an establishment to which the Scheme applies has defaulted in the payment of any dues to the Central Board or the Fund recoverable from him under
Removal from Trusteeship or membership of a regional Committee :- The Central Government may remove from office any trustee of the Central Board or the Chairman, Central Board, may remove from office any member of a Regional Committee--
(i) if, in the opinion of the Central Government or the Chairman, Central Board, such trustee or member has ceased to represent the interest which he purports to represent on the Board or Committee, as the case may be; or
(ii) if he as an employer in relation to an exempted establishment or an establishment to which the Scheme applies has defaulted in the payment of any dues to the Board or the Fund recoverable from him under the Act or the Scheme, as the case may be :
Absence from India :- (1) Before a non-official trustee or a member of a Regional Committee, leaves India :-
(a) he shall intimate to the Chairman of the Central Board or of the Committee, as the case may be, of the dates of his departure from and expected return to India, or
(b) if he intends to absent himself for a period longer than six months, he shall tender his resignation
(2) If any trustee or a member of a Regional Committee leaves India for a period of six months or more without intimation to the Chairman of the Central Board or of the Regional Committee, as the case may be, he shall be deemed to have resigned from the Central Board or the Committee.
<Meetings :- (1) The Central Board of Trustees or the Executive Committee or Regional Committee shall, subject to the provisions of paragraph 12, meet at such place and time as may be appointed by the Chairman :
Provided that the Central Board or the Regional Committee shall meet at least twice in each financial year and the Executive Committee shall meet at least four times in each financial year.
(2) The Chairman may, whenever he thinks fit, and shall within fifteen days of the receipt of a requisition in writing from not less than one-third of the members in the case of the Central Board or the Executive Committee and not less than three members excluding the Chairman in the case of a Regional Committee, call a
Notice of meeting and list of business :- Notice of not less than 15 days from the date of posting, containing the date, time and place of every ordinary meeting together with a list of business to be conducted at the meeting, shall be despatched by registered post or by Special messenger to each Trustee or a member of the Executive Committee or the Regional Committee, as the case may be, present in India :
Provided that when the Chairman calls a meeting for considering any matter which in his opinion is urgent, notice giving such reasonable time as he may consider necessary, shall be deemed sufficient.
Chairman to preside at meetings :- The Chairman of the Central Board or the Executive Committee or a Regional Committee shall preside at every meeting of the Central Board or the Executive Committee or the Regional Committee, as the case may be, at which he is present. If the Chairman of the Central Board is absent at any time, the Vice-Chairman thereof shall preside over the meeting of the Central Board and exercise all the powers of the Chairman at the meeting. If the Vice-Chairman of the Central Board or the Chairman at the meeting. If the Vice-Chairman of the Central Board or the Chairman of the Executive Committee or of a Regional Committee is absent at any tiem, the trustees or members present shall elect one of the trustees or, as the case may be, the members to preside over the meeting and the trustee or m
Quorum :- (1) No business shall be transacted at a meeting of the Central Board or the Executive Committee or a Regional Committee unless at least eleven trustees or four members of the Executive committee or a Regional Committee, as the case may be, are present, of whom :-
(a) in the case of the Central Board at least one each shall be from among those appointed under clauses (d) and (e) respectively of sub_section (1) of Section 5-A of the Act;
(aa) in the case of the Executive Committee at least one each shall be from among those elected under clauses (d) and (e) of sub_section (2) of Section 5-AA of the Act ;
(b) in the case of a Regional Committee, at least one shall b
Nomination of a substitute during the absence of a trustee/memebr of the Central Board/Regional Committee :- (1) If a trustee or a member is unable to attend any meeting of the Central Board or the Regional Committee, as the case may be, he may, by a written instrument, signed by him, addressedto the Chairman of the Central Board or the Regional Committee, as the case may be, and explaining the reason for his inability to attend the meeting, appoint any representative of the Organisation, which he representes on the Central Board or the Regional Committee, as his substitute for attending that meeting of the Central Board or the Regional Committee in his place :
Provided that no such appointment shall be valid unless--
Disposal of business :- Every question considered at a meeting of the Central Board or the Executive Committee or a Regional Committee shall be decided by a majority of the votes of the trustees or members of the Executive Committee or a Regional Committee present and voting. In the even of an equality of votes the chairman shall exercise a casting vote :
Provided that the Chairman may, if he thinks fit, direct that any question shall be decided by the circulation of necessary papers to trustees or members of the Executive Committee or a Regional Committee present in India and by securingtheir opinions in writing. Any such question shall be decided in accordance with the opinion of the majority of trustees or members received within the time limit allowe
Minutes of Meetings :- (1) The minutes of meeting of the Central Board or the Executive Committee or a Regional Committee showing inter alia the names of the trustees or members of Executive Committee or a Regional Committee present thereat shall be circulated to all trustees or members of Executive Committee or a Regional Committee present in India not later than one month from the date of the meeting. The minutes shall thereafter be recorded in minute book as a permanent record :
Provided that if another meeting is held within a perioid of one month and ten days, the minutes shall be circulated so as to reach the trustess or members at least ten days before such meeting.
(2) The records of the minutes of each me
Act of a Regional Committee not invalid by reason merely of any vacancy in, or defect in the Constitution, etc. :- No act or proceeding of a Regional Committee shall be deemed to be invalid by reason merely of any vacancy in or any defect in the constitution of the Regional Committee.
Fees and allowances :- (1) The travelling allowance and daily allowance of an official trustee or official member of the Executive Committee or a Regional Committee shall be governed by the rules applicable to him for journeys performed on official duties and shall be paid by the authority paying his salary.
(2) Subject to the provisions of sub_paragraphs (3) and (4), every non-official trustee or non-official member of the Executive Committee or a Regional Committee shall be allowed travelling and daily allowances for attending the meeting of the Central Board or the Executive Committee or the Regional Committee, as the case may be, at the following rates, namely :-
(i) Travelling allowance :-
Central Provident Fund Commissioner and Financial Adviser and Chief Accounts Officer :- The Central Provident Fund Commissioner and the Financial Adviser and Chief Accounts Officer shall not undertake any work unconnected with their office without the previous sanction of the Central Government.
[x x x]
Opening of regional and other offices :- The Central Board may, open such regional and local offices as it may consider desirable for the proper implementation of the Scheme. It may also define the functions and duties of the regional and local offices.
Secretary of the Central Board or a Regional Committee :-*[(1) The Central Provident Fund Commissioner shall be the Secretary of the Central Board and of the Executive Committee. The Additional Central Provident Fund Commissioner in charge of a State shall be Secretary of the Regional Committee of the State or Union Territory where the State has more than one Regional Office in existence. Where the State has only one Regional Office, the Regional Provident Fund Commissioner in charge of the Region shall be the Secretary of the Regional Committee of the State or Union Territory within his jurisdiction.]
(2) The Secretary to the Central Board or the Executive Committee or a Regional Committee shall, in con
Appointment of Officers and employees of the Central Board :- The power of appointment vested in the Central Board under sub_section (3) of Section 5-D of the Act shall be exercised by the Board in relation to posts carrying the maximum scale of pay of Rs. 4500-57000.
Information of appointments to the Central Board :- References relating to all appointments of officers of the level of the Regional Provident Fund Commissioners and above made by the Chairman, Central Board shall be placed before the next meeting of the Central Board for inoformation.
Administrative and Financial Powers of a Commissioner :- (1) A Commissioner may, without reference to the Central Board sanction expenditure on contingencies, supplies and services and purchases of articles required for administering the Fund subject to financial provision in the budget and subject to the limits up to which a Commissioner may be authorised to sanction expenditure on any single item from to time by the Central Board.
(2) A Commissioner may also exercise such administrative and financial powers other than those specified in sub_paragraph (1) above, as may be delegated to him from time to time by the Central Board.
(3) A Commissioner may delegate from time to time the administrative and financial pow
Delegation of power by the Central Board :- (1) The Central Board may, by a resolution, empower its Chairman to sanction expenditure on any item, wether in the nature of capital expenditure or revenue expenditure, as it may deem necessary for the efficient administration of the Fund, subject to financial provisions in the Budget, where such expenditure is beyond the limits upto, which the Commissioner is authorised to sanction expenditure on any single item.
(2) The Central Board may also, by a resolution, empower its Chairman to appoint such officers and employees other than those mentioned in subsections (1) and (2) of Section 5-D of the Act, as he may consider necessary for the efficient administration of the Scheme.
Powers of the Central Government until the Central Board is constituted :- Until the Central Board is constituted, the Central Government shall administer the Fund and may exercise any of the powers and discharge any of the functions of the Board :
Provided that on the constitution of the Central Board, the Central Government shall transfer amounts standing to the credit of the Fund to the Central Board.
Classes of employees entitled and required to join the Fund :- (1) (a) Every employee employed in or in connection with the work of a factory or other establishment to which this Scheme applies, other than an excluded employee, shall be entitled and required to become a member of the Fund from the day this Paragraph comes into force in such factory or other establishment.
(b) Every employee employed in or in connection with the work of a fatory or other establishment to which this Scheme applies, other than an excluded employee, shall also be entitled and required to become a member of the fund from the day this Paragraph comes into force in such factory or other establishment if on the date of such coming into force, such employee is a subscriber to a p
Retention of membership :- (1) A member of the Fund shall continue to be a member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under Section 17 of the Act or an order of exemption under Paragraph 27 or Paragraph 27-A.
Explanation :- In the case of claim for refund by a member under sub_paragraph (2) of Paragraph 69, the membership of the Fund shall be deemed to havae been terminated from the date the payment is authorised to him by the authority specified in this behalf by Commissioner irrespective of the date of claim.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishme
Resolution of doubts :- If any question arises whether an employee is entitled or required to become or continue as a member, or as regards the date from which he is so entitled or required to becomes a member, the decision, of the Regional Commissioner shall be final :
Provided that no decision shall be given unless both the employer and the employee have been heard.
Exemption of an employee :- (1) A Commissioner may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme an employee to whom the scheme applies on receipt of application in Form I from such an employee :
Provided that such an employee is entitled to benefit in the nature of Provident Fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and the Scheme.
(2) Where an employee is exempted as aforesaid, the employer shall in respect of such employee maintain such account,
Exemption of a class of employees :- (1) The appropriate Government may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme any class of employees to whom the Scheme applies :
Provided that such class of employees is entitled to benefits in the nature of provident fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and this Scheme.
(2) Where any class of employees is exempted as aforesaid, the employer shall inrespect of such class of employees maintain such accou
Transfer of accumulations from existing Provident Funds :- (1) Every authority in charge of, or entrusted with the management of, any Provident Fund in existence the accumulations wherein are to be transferred to the Fund under sub_section (2) of Section 15 of the Act, or sub_section (5) of Section 17 thereof, as the case may be shall--
(i) send the Commissioner a statement showing the amount standing to the credit of each subscriber on the date of the transfer, the total accumulations to the cfedit of subscribers generally on that date and the advances, if any, taken by the subscribers within twenty-five days of the application of the Scheme, or cancellation of exemption, as the case may be,
(ii) transfer to the
Contributions :- (1) The contributions payable by the employer under the Scheme shall be at the rate of 8 1/3 per cent of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any) payable to each employee to whom the Scheme applies :
Provided that the above rate of contribution shall be ten per cent in respect of any establishment or class of establishments which the Central Government may specify in the Official Gazett from time to time under the first proviso to sub_section (1) of Section 6 of the Act.
(2) The contribution payable by the employee under the Scheme shall be equal to the contribution payable by the employer in respect of such employee :
Payment of contribution :- (1) The employer shall, in the first instance, pay both the contribution payable by himself (in, this Scheme referred to as the employer’s contribution) and also, on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in this Scheme referred to as the member’s contribution).
(2) In respect of employed by or through a contractor, the contractor shall recover the contrubution payable by such employee (in this Scheme referred to as the member’s contribution) and shall pay to the principal employer the amount of member’s contribution so deducted together with an equal amount of contribution (in this Scheme referred to as the employer’s c
Employer’s share not to be deducted from the members :- Notwithstanding any contract to the contrary the employers shall not be entitled to deduct the employer’s contribution from the wage of a member or otherwise to recover it from him.
Recovery of a member’s share of contribution :- (1) The amount of a member’s contribution paid by the employer or a contractor shall, notwithstanding the provisions in this Scheme or any law for the time being in force or any contract to the contrary, be recoverable by means of deduction from the wages of the member and not otherwise :
Provided that no such deduction may be made from any wages other thatn that which is paid in respect of the period or part of the period in respect of which the contribution is payable :
Provided further that the employer or a contractor shall be entitled to recover the employee’s share from a wage other than that which is paid in respect of the period for whic
Recovery of damages for default in payment of any contribution :- (1) Where an employer makes default in the payment of any contribution to the fund, or in the transfer of accumulations required to be transferred by him under sub_section (2) of Section 15 or sub_section (5) of Section 17 of the Act or in the payment of any charges payable under any other provisions of the Act or Scheme or under any of the conditions specified under Section 17 of the Act, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette in this behalf, may recover from the employer by way of penalty, damages at the rates given below :-
Terms and conditions for reduction or waiver of damages :- The Central Board may reduce or waive the damages levied under Section 14-B of the Act in relation to an establishment specified in the sectiond proviso to Selection 14-B, subject to the following terms and conditions, namely :-
(a) in case of a change of management including transfer of the undertaking to workers co_operative and in case of merger or amalgamation of the sick industrial company with any other industrial company, complete waiver of damages may be allowed ;
(b) in cases where the Board for Industrial and Financial Reconstruction, for reasons to be recorded in its scheme, in this behalf recommends, waiver of damages up to 100 per cent may be
Declaration by persons already employed at the time of institution of the Fund :- Every person who is required or entitled to become a member of the Fund shall be asked forthwith by his employer to furnish and shall, on such demand, furnish to him, for communication to the Commissioner, particulars concerning himself and his nominee required for the declaration Form in Form 2. Such employer shall enter the particulars in the declaration form and obtain the signature or thumb impression of the person concerned.
Composition of the Board of Trustees of the exempted establishments and the terms and conditions of service of the trustees :- (1) The Board of Trustees of the establishment granted exemption under clause (a) of sub_section (2) of Section 17 of the Act shall consist of not less than two and not more than six representatives each of the employers and employees. The number of trustees shall be so fixed, as to afford, as far as possible, representation to employees of each branch or department of the establishment. In the case of common provident fund for a group of two or more establishments, there will be at least one representative each from the participating establishments :
Provided that any factory or establishment seeking fresh exemption shall not be
The Scheme shall, in its application to newspaper establishments and newspaper employees, as defined in Section 2 of the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955, come into force on the 31st day of December, 1956 and be subject to the modifications mentioned below :-
1. In Chapters I to IX references to ‘Industry’, ‘factory’ and ‘employees’ shall be construed as reference to ‘newspaper industry’, newspaper establishments’ and ‘newspaper employees’, respectively :
2. For paragraph 2(f), the following shall be substituted, namely :-
“(f) ‘excluded employe
Special Provisions in the case of cine-workers :- The Scheme shall, inits application to cine-workers as defined in clause (c) of Section 2 of the Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 (50 of 1981), be subject to the following modifications, namely :-
(1) In Chapters I to IX references to “Industry” and “employees” shall be construed as references to “film production” and “cine-workers” respectively;
(2) For sub_paragraph (f) of paragraph 2, the folloiwng sub_paragraph shall be substituted, namely :-
(f) “excluded employee” measn :-
(
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