1[(1) This Act may be called the Employees' ProvidentFunds and Miscellaneous Provisions Act, 1952.]

(2) It extends to the whole of India 2.

3[(3) Subject to the provisions contained in section 16, it applies--

(a) to every establishment which is a factory engaged in any industry specified in Schedule I andin which 4[twenty] or more persons are employed, and

(b) to any other establishment employing 4[twenty] or more persons or class of suchestablishments which the Central Government may, by notification in the Official Gazette, specify inthis behalf:

Provided that the Central Government may, after giving not less than two months notice of itsintention so to do, by notification in the Official Gazette, apply the provisions of this Act to anyestablishment employing such number of persons less than 4[twenty] as may be specified in thenotification.

5[(4) Notwithstanding anything contained in sub-section (3) of this section or sub-section (1) ofsection 16, where it appears to the Central Provident Fund Commissioner, whether on an applicationmade to him in this behalf or otherwise, that the employer and the majority of employees in relation toany establishment have agreed that the provisions of this Act should be made applicable to theestablishment, he may, by notification in the Official Gazette, apply the provisions of this Act to thatestablishment on and from the date of such agreement or from any subsequent date specified in suchagreement.]

6[(5) An establishment to which this Act applies shall continue to be governed by this Actnotwithstanding that the number of persons employed therein at any time falls below twenty.]

7

1. Subs. by Act 99 of 1976, s. 17, for sub-section (1) (w.e.f. 1-8-1976).

2. 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).

3. Subs. by Act 94 of 1956, s. 2, for sub-section (3).

4. Subs. by Act 46 of 1960, s. 2, for "fifty" (w.e.f. 31-12-1960).

5. Subs. by Act 33 of 1988, s. 2, for sub-section (4) (w.e.f. 1-8-1988).

6. Ins. by Act 46 of 1960, s. 2 (w.e.f. 31-12-1960).

7. The proviso omitted by Act 16 of 1971, s. 13 (w.e.f. 23-4-1971).

In this Act, unless the context otherwise requires,

1[(a) "appropriate Government" means--

(i) in relation to an establishment belonging to, or under the control of, the CentralGovernment or in relation to an establishment connected with a railway company, a major port, amine or an oilfield or a controlled industry, 2[or in relation to an establishment havingdepartments or branches in more than one State], the Central Government; and

(ii) in relation to any other establishment, the State Government;]

3[(aa) "authorised officer" means the Central Provident Fund Commissioner, Additional CentralProvident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident FundCommissioner or such other officer as may be authorised by the Central Government, by notificationin the Official Gazette;]

(b) "basic wages" means all emoluments which are earned by an employee while on duty or 4[onleave or on holidays with wages in either case] in accordance with the terms of the contract ofemployment 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 toan 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 hisemployment or of work done in such employment;

(iii) any presents made by the employer;

(c) "contribution" means a contribution payable in respect of a member under a Scheme 5[or thecontribution 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 declaredby a Central Act to be expedient in the public interest;

6[(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 oroccupier and, where a person has been named as a manager of the factory under clause (f) ofsub-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 theultimate control over the affairs of the establishment, and where the said affairs are entrusted to amanager, managing director or managing agent, such manager, managing director or managingagent;]

(f) "employee" means any person who is employed for wages in any kind of work, manual orotherwise, in or in connection with the work of 7[an establishment], and who gets his wages directlyor indirectly from the employer, 8[and includes any person--

(i) employed by or through a contractor in or in connection with the work of theestablishment;

(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;]

9[(ff) "exempted employee" means an employee to whom a Scheme 10[or the Insurance Scheme, asthe case may be], would, but for the exemption granted under 11 section 17, have applied;

(fff) "exempted 12[establishment]" means 13[an establishment] in respect of which an exemption hashas been granted under section 17 from the operation of all or any of the provisions of any Scheme10[or the Insurance Scheme, as the case may be], whether such exemption has been granted to the12[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 amanufacturing process is being carried on or is ordinarily so carried on, whether with the aid of poweror without the aid of power;

14

(h) "Fund" means the provident fund established under a Scheme;

(i) "industry" means any industry specified in Schedule I, and includes any other industry addedto the Schedule by notification under section 4;

10[(ia) "Insurance Fund" means the Deposit-linked Insurance Fund established undersub-section (2) of section 6C;

(ib) "Insurance Scheme" means the Employees Deposit-linked Insurance Scheme framed undersub-section (1) of section 6C;]

15[16[(ic)] "manufacture" or "manufacturing process" means any process for making, altering,repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing orotherwise treating or adapting any article or substance with a view to its use, sale, transport, deliveryor 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 thefactory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed tobe the occupier of the factory;

17[(kA) "Pension Fund" means the Employees' Pension Fund established under sub-section (2) ofsection 6A;

(kB) "Pension Scheme" means the Employees' Pension Scheme framed under sub-section (1) ofsection 6A;]

18[(ka) "prescribed" means prescribed by rules made under this Act;

(kb) "Recovery Officer" means any officer of the Central Government, State Government or theBoard 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;]

19[(l) "Scheme" means the Employees' Provident Fund Scheme framed under section 5;]

20[(ll) "Superannuation", in relation to an employee, who is the member of the Pension Schememeans the attainment, by the said employee, of the age of fifty-eight years;]

21[(m) u201cTribunalu201d means the Industrial Tribunal referred to in section 7 D].

1. Subs. by Act 22 of 1958, s. 2, for clause (a).

2. Ins. by Act 22 of 1965, s. 2 (w.e.f. 24-11-1964).

3. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).

4. Subs. by s. 3, ibid., for "on leave with wages" (w.e.f. 1-8-1988).

5. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).

6. Subs. by Act 94 of 1956, s. 4, for clause (e).

7. Subs. by ibid., s. 3, for "a factory".

8. Subs. by Act 33 of 1988, s. 3, for "and includes any person employed by or through a contractor in or in connection with thework of the establishment" (w.e.f. 1-8-1988).

9. Ins. by Act 37 of 1953, s. 3.

10. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).

11. The words, brackets and figure "sub-section (1) of" omitted by Act 28 of 1963, s. 2 (w.e.f. 30-11-1963).

12. Subs. by Act 94 of 1956, s. 3, for "factory".

13. Subs. by s. 3, ibid., for "a factory".

14. Omitted by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).

15. Subs. by Act 28 of 1963, s. 2, for clause (ia) (w.e.f. 30-11-1963).

16. Clause (ia) re-lettered as clause (ic) by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976).

17. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).

18. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).

19. Subs. by Act 16 of 1971, s. 14, for clause (l) (w.e.f. 23-4-1971).

20. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995).

21. Ins. by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017).

1[2A. Establishment to include all departments and branches.--For the removal of doubts, it ishereby declared that where an establishment consists of different departments or has branches, whethersituate in the same place or in different places, all such departments or branches shall be treated as partsof the same establishment.]

1. Ins. by Act 46 of 1960, s. 3 (w.e.f. 31-12-1960).

1[3. Power to apply Act to an establishment which has a common provident fund with anotherestablishment.--Where immediately before this Act becomes applicable to an establishment there is inexistence a provident fund which is common to the employees employed in that establishment andemployees 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.]

1. Subs. by Act 94 of 1956, s. 5, for section 3.

(1) The Central Government may, by notification in the OfficialGazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion that aprovident fund scheme should be framed under this Act, and thereupon the industry so added shall bedeemed 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, afterthey are issued.

1[(1)] The Central Government may, by notification inthe Official Gazette, frame a Scheme to be called the Employees' Provident Fund Scheme for theestablishment of provident funds under this Act for employees or for any class of employees and specifythe 2[establishments] or class of 2[establishments] to which the said Scheme shall apply 3[and there shallbe established, as soon as may be after the framing of the Scheme, a Fund in accordance with theprovisions of this Act and the Scheme].

4[(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section5A.

(1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may provide for allor any of the matters specified in Schedule II.]

5[(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effecteither prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.]

1. Section 5 re-numbered as sub-section (1) thereof by Act 37 of 1953, s. 4.

2. Subs. by Act 94 of 1956, s. 3, for "factories".

3. Ins. by Act 37 of 1953, s. 4.

4. Ins. by Act 28 of 1963, s. 3 (w.e.f. 30-11-1963).

5. Ins. by Act 37 of 1953, s. 4.

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 towhich this Act extends (hereinafter in this Act referred to as the Central Board) consisting of thefollowing 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 CentralGovernment 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 maybe 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 maybe 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 andthe time, place and procedure of the meetings of the Central Board shall be such as may be provided forin the Scheme.

(3) The Central Board shall 6[, subject to the provisions of section 6A 7[and section 6C,]] administerthe 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 underany 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 formand in such manner as the Central Government may, after consultation with the Comptroller and AuditorGeneral of India, specify in the Scheme.

(6) The accounts of the Central Board shall be audited annually by the Comptroller and AuditorGeneral of India and any expenditure incurred by him in connection with such audit shall be payable bythe 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 connectionwith the audit of the accounts of the Central Board shall have the same rights and privileges and authorityin connection with such audit as the Comptroller and Auditor-General has, in connection with the audit ofGovernment 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 orany other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Central Board which shall forward the same to the Central Government along with its comments onthe 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 reportof its work and activities and the Central Government shall cause a copy of the annual report, the auditedaccounts together with the report of the Comptroller and Auditor-General of India and the comments ofthe Central Board thereon to be laid before each House of Parliament.]

1. Ins. by Act 28 of 1963, s. 4 (w.e.f. 30-11-1963).

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)

1[5AA. Executive Committee. (1) The Central Government may, by notification in the OfficialGazette, constitute, with effect from such date as may be specified therein, an Executive Committee toassist 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 the members of the CentralBoard;

(b) two persons appointed by the Central Government from amongst the persons referred to inclause (b) of sub-section (1) of section 5A;

(c) three persons appointed by the Central Government from amongst the persons referred to inclause (c) of sub-section (1) of section 5A;

(d) three persons representing the employers elected by the Central Board from amongst thepersons 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 thepersons 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 orelected to the Executive Committee and the time, place and procedure of the meetings of the ExecutiveCommittee shall be such as may be provided for in the Scheme.]

1. Ins. by Act 33 of 1988, s. 5 (w.e.f. 1-8-1988).

1[5B. State Board. (1) The Central Government may, after consultation with the Government of anyState, by notification in the Official Gazette, constitute for that State a Board of Trustees (hereinafter inthis 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 mayassign to it from time to time.

(3) The terms and conditions subject to which a member of a State Board may be appointed and thetime, place and procedure of the meetings of a State Board shall be such as may be provided for in theScheme.]

1. Ins. by Act 28 of 1963, s. 4.

1[5C. Board of Trustees to body corporate. Every Board of Trustees constituted under section5A 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.]

1. Ins. by Act 28 of 1963, s. 4.

1[5D. Appointment of officers. (1) The Central Government shall appoint a Central Provident FundCommissioner who shall be the chief executive officer of the Central Board and shall be subject to thegeneral control and superintendence of that Board.

(2) The Central Government may also appoint 2[a Financial Adviser and Chief Accounts Officers] toassist the Central Provident Fund Commissioner in the discharge of his duties.

(3) The Central Board may appoint 3[, subject to the maximum scale of pay, as may be specified inthe Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident FundCommissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and]such other officers and employees as it may consider necessary for the efficient administration of theScheme 4[, the 5[Pension Scheme and the Insurance Scheme].

(4) No appointment to 6[the post of the Central Provident Fund Commissioner or an AdditionalCentral Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any otherpost under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group 'A' orGroup 'B' post under the Central Government] shall be made except after consultation with the UnionPublic 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 Government or the Central Board in a7[Group 'A' or Group 'B' post].

(5) A State Board may, with the approval of the State Government concerned, appoint such staff as itmay consider necessary.

(6) The method of recruitment, salary and allowances, discipline and other conditions of service ofthe Central Provident Fund Commissioner, 8[and the Financial Adviser and Chief Accounts Officer] shallbe such as may be specified by the Central Government and such salary and allowances shall be paid outof the Fund.

9[(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of serviceof the Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner,Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers andemployees of the Central Board shall be such as may be specified by the Central Board in accordancewith the rules and orders applicable to the officers and employees of the Central Government drawingcorresponding scales of pay:

Provided that where the Central Board is of the opinion that it is necessary to make a departure fromthe said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of theCentral Government.

(b) In determining the corresponding scales of pay of officers and employees under clause (a), theCentral Board shall have regard to the educational qualifications, method of recruitment, duties andresponsibilities 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.]

(8) The method of recruitment, salary and allowances, discipline and other conditions of service ofofficers and employees of a State Board shall be such as may be specified by that Board, with theapproval of the State Government concerned.]

1. Ins. by Act 28 of 1963, s. 4.

2. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988).

3. Ins. by, s. 6, ibid. (w.e.f. 1-8-1988).

4. Subs. by Act 99 of 1976, s. 20, for "and the Family Pension Scheme" (w.e.f. 1-8-1976).

5. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

6. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988).

7. Subs. by s. 6, ibid., for "Class I or Class II post" (w.e.f. 1-8-1988).

8. Subs. by s. 6, ibid., for "Deputy Provident Fund Commissioner and Regional Provident Fund Commissioner"(w.e.f. 1-8-1988).

9. Subs. by s. 6, ibid., for sub-section (7) (w.e.f. 1-8-1988).

1[5DD. Acts and proceedings of the Central Board or its Executive Committee or the StateBoard not to be in validated on certain grounds. No act done or proceeding taken by the CentralBoard or the Executive Committee constituted under section 5AA or the State Board shall be questionedon the ground merely of the existence of any vacancy in, or any defect in the constitution of, the CentralBoard or the Executive Committee or the State Board, as the case may be.]

1. Ins. by Act 33 of 1988, s. 7. (w.e.f. 1-8-1988).

1[5E. Delegation. 2[The Central Board may delegate to the Executive Committee or to the Chairmanof the Board or to any of its officers and a State Board may delegate to its Chairman or to any of itsofficers] subject to such conditions and limitations, if any, as it may specify, such of its powers andfunctions under this Act as it may deem necessary for the efficient administration of the Scheme 3[, the4[Pension] Scheme and the Insurance Scheme].]]

1. Ins. by Act 28 of 1963, s. 4.

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).

1 The contributionwhich shall be paid by the employer to the Fund shall be 2[ten per cent.] of the basic wages, 3[dearnessallowance and retaining allowance (if any)] for the time being payable to each of the employees4[(whether employed by him directly or by or through a contractor)], and the employees' contributionshall be equal to the contribution payable by the employer in respect of him and may, 5[if any employeeso desires, be an amount exceeding 2[ten per cent.] of his basic wages, dearness allowance and retainingallowance (if any), subject to the condition that the employer shall not be under an obligation to pay anycontribution over and above his contribution payable under this section]:

6[Provided that in its application to any establishment or class of establishments which the CentralGovernment, after making such inquiry as it deems fit, may, by notification in the Official Gazettespecify, this section shall be subject to the modification that for the words 2[ten per cent.], at both theplaces where they occur, the words7[twelve per cent.] shall be substituted:]

Provided further that where the amount of any contribution payable under this Act involves a fractionof a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of arupee or quarter of a rupee.

8[Explanation 1.] -- For the purposes of this 13[section], dearness allowance shall be deemed toinclude also the cash value of any food concession allowed to the employee.

10[Explanation 2].-- For the purposes of this 9[section], "retaining allowance" means an allowancepayable for the time being to an employee of any factory or other establishment during any period inwhich the establishment is not working, for retaining his services.]

11

1. The brackets and figure "(1)" omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).

2. Subs. by Act 10 of 1998, s. 2, for "eight and one-third per cent." (w.e.f. 22-9-1997).

3. Subs. by Act 46 of 1960, s. 4, for "and the dearness allowance" (w.e.f. 31-12-1960).

4. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).

5. Subs. by Act 33 of 1988, s. 9, for certain words (w.e.f. 1-8-1988).

6. Subs. by s. 9, ibid., for the First Proviso (w.e.f. 1-8-1988).

7. Subs. by Act 10 of 1998, s. 2, for "ten per cent." (w.e.f. 22-9-1997).

8. The Explanation. re-numbered as Explanation 1 by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).

9. Subs. by Act 28 of 1963, s. 5, for "sub-section" (w.e.f. 30-11-1963).

10. The Explanation ins. by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).

11. Omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).

1[6A. Employees' Pension Scheme. (1) The Central Government may, by notification in theOfficial Gazette, frame a scheme to be called the Employees' Pension Scheme for the purpose ofproviding for--

(a) superannuation pension, retiring pension or permanent total disablement pension to theemployees of any establishment or class of establishments to which this Act applies; and

(b) widow or widowers pension, children pension or orphan pension payable to the beneficiariesof such employees.

(2) Notwithstanding anything contained in section 6, there shall be established, as soon as may beafter framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, inrespect 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 andone-third per cent. of the basic wages, dearness allowance and retaining allowance, if any, of theconcerned 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 ofthe Pension Fund;

(d) such sums as the Central Government may, after due appropriation by Parliament by law inthis behalf, specify.

(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to asthe ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall standtransferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fundand the beneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than thebenefits 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 maybe specified in the Pension Scheme.

(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the mattersspecified in Schedule III.

(6) The Pension Scheme may provide that all or any of its provisions shall take effect eitherprospectively 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 becomprised in one session or in two or more successive sessions, and if, before the expiry of the sessionimmediately following the session or the successive sessions aforesaid, both Houses agree in making anymodification in the scheme or both Houses agree that the scheme should not be made, the scheme shallthereafter have effect only in such modified form or be of no effect, as the may be; so, however, that anysuch modification or annulment shall be without prejudice to the validity of anything previously doneunder that Scheme.]

1. Subs. by Act 25 of 1996, s. 5, for sections 6A and 6B (w.e.f. 16-11-1995).

1[6C. Employees' Deposit linked Insurance Scheme. (1) The Central Government may, bynotification in the Official Gazette, frame a scheme to be called the Employees' Deposit-linked InsuranceScheme for the purpose of providing life insurance benefits to the employees of any establishment orclass of establishments to which this Act applies.

(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, aDeposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect ofevery such employee in relation to whom he is the employer, such amount, not being more than one percent. of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the timebeing payable in relation to such employee as the Central Government may, by notification in the OfficialGazette, specify.

Explanation.--For the purposes of this sub-section, the expressions "dearness allowance" and"relating allowance" have the same meanings as in section 6.

2

(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceedingone-fourth of the contribution which he is required to make under sub-section (2), as the CentralGovernment may, from time to time, determine to meet all the expenses in connection with theadministration of the Insurance Scheme other than the expenses towards the cost of any benefits providedby or under that scheme.

2

(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner asmay 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 prospectivelyor retrospectively on such date as may be specified in this behalf in that Scheme.]

1. Ins. by Act 99 of 1976, s. 21 (w.e.f. 1-8-1976).

2. Omitted by Act 25 of 1996, s. 6 (w.e.f. 16-11-1995)

1[6D. Laying of schemes before Parliament. Every scheme framed under section 5, section 6Aand section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, whileit is in session, for a total period of thirty days which may be comprised in one session or in two or moresuccessive sessions, and if, before the expiry of the session immediately following the session or thesuccessive sessions aforesaid, both Houses agree in making any modification in the scheme, or bothHouses agree that the scheme should not be framed, the scheme shall thereafter have effect only in suchmodified form or be of no effect, as the case may be; so, however, that any such modification orannulment shall be without prejudice to the validity of anything previously done under that scheme.]

1. Ins. by Act 4 of 1986, s. 2 and Schedule (w.e.f. 15-5-1986).

(1) The Central Government may, by notification in the OfficialGazette, add to,1[amend or vary, either prospectively or retrospectively, the Scheme, the 2[Family Pension]Scheme or the Insurance Scheme, as the case may be].

3[(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 becomprised in one session or in two or more successive sessions, and if, before the expiry of the sessionimmediately following the session or the successive sessions aforesaid, both Houses agree in making anymodification in the notification, or both Houses agree that the notification should not be issued, thenotification 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 ofanything previously done under that notification.]

1. 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).

2. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

3. Subs. by Act 4 of 1986, s. 2 and Schedule, for sub-section (2) (w.e.f. 15-5-1986).

1[7A. Determination of moneys due from employers. 2[(1) The Central Provident FundCommissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident FundCommissioner, any Regional Provident Fund Commissioner, or any Assistant Provident FundCommissioner 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 this Act, the Scheme orthe 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), fortrying 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 and228, 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 areasonable opportunity of representing his case.

6[(3A) Where the employer, employee or any other person required to attend the inquiry undersub-section (1) fails to attend such inquiry without assigning any valid reason or fails to produce anydocument or to file any report or return when called upon to do so, the officer conducting the inquiry maydecide 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, withinthree months from the date of communication of such order, apply to the officer for setting aside suchorder and if he satisfies the officer that the show cause notice was not duly served or that he wasprevented by any sufficient cause from appearing when the inquiry was held, the officer shall make anorder 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 irregularityin the service of the show cause notice if the officer is satisfied that the employer had notice of the date ofhearing and had sufficient time to appear before the officer.

Explanation.-- Where an appeal has been preferred under this Act against an order passed ex parteand such appeal has been disposed of otherwise than on the ground that the appellant has withdrawn theappeal, no application shall lie under this sub-section for setting aside the ex parte order.

(5) No order passed under this section shall be set aside on any application under sub-section (4)unless notice thereof has been served on the opposite party].]

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).

1[7B. Review of orders passed under section 7A. (1) Any person aggrieved by an order madeunder sub-section (1) of section 7A, but from which no appeal has been preferred under this Act, andwho, from the discovery of new and important matter or evidence which, after the exercise of duediligence was not within his knowledge or could not be produced by him at the time when the order wasmade, or on account of some mistake or error apparent on the face of the record or for any other sufficientreason, desires to obtain a review of such order may apply for a review of that order to the officer whopassed the order:

Provided that such officer may also on his own motion review his order if he is satisfied that it isnecessary so to do on any such ground.

(2) Every application for review under sub-section (1) shall be filed in such form and manner andwithin such time as may be specified in the Scheme.

(3) Where it appears to the officer receiving an application for review that there is no sufficientground 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 thesame:

Provided that,--

(a) no such application shall be granted without previous notice to all the parties before him toenable them to appear and be heard in support of the order in respect of which a review is appliedfor, and

(b) no such application shall be granted on the ground of discovery of new matter or evidencewhich the applicant alleges was not within his knowledge or could not be produced by him when theorder was made, without proof of such allegation.

(5) No appeal shall lie against the order of the officer rejecting an application for review, but anappeal under this Act shall lie against an order passed under review as if the order passed under reviewwere the original order passed by him under section 7A.]

1. Ins. by Act 33 of 1988, s. 11 (w.e.f. 1-7-1977).

1[7C. Determination of escaped amount. Where an order determining the amount due from anemployer under section 7A or section 7B has been passed and if the officer who passed the order--

(a) has reason to believe that by reason of the omission or failure on the part of the employer tomake any document or report available, or to disclose, fully and truly, all material facts necessary fordetermining the correct amount due from the employer, any amount so due from such employer forany period has escaped his notice;

(b) has, in consequence of information in his possession, reason to believe that any amount to bedetermined under section 7A or section 7B has escaped from his determination for any periodnotwithstanding that there has been no omission or failure as mentioned in clause (a) on the part ofthe employer,

he may, within a period of five years from the date of communication of the order passed under section7A or section 7B, re-open the case and pass appropriate orders re-determining the amount due from theemployer in accordance with the provisions of this Act:

Provided that no order re-determining the amount due from the employer shall be passed under thissection unless the employer is given a reasonable opportunity of representing his case.]

1. Ins. by Act 33 of 1988, s. 11 (w.e.f. 1-7-1977).

1[7D Tribunal--The Industrial Tribunal constituted by the Central Government under sub-section (1) of section 7A of the Industrial Disputes Act, 1947 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Tribunal for the purposes of this Act and the said Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

[Term of office.] Omitted by the Finance Act, 2017 (7 of 2017), s. 159 (w.e.f. 26-5-2017).

[Resignation.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017).

[Salary and allowances and other terms and conditions of or service of Presiding Officer.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017).

[Staff of Tribunal.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017).

1[7-I. Appeals to Tribunal.--(1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Central Government or any authority, under the proviso to sub-section (3), or sub-section (4), of section 1, or section 3, or sub-section (1) of section 7A, or section 7B

[except an order rejecting an application for review referred to in sub-section (5) thereof], or section 7C, or section 14B, may prefer an appeal to a Tribunal against such notification or order.

(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and be accompanied by such fees, as may be prescribed.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[7J. Procedure of Tribunals.--(1) A Tribunal shall have power to regulate its own procedure in all matters arising out of the exercise of its powers or of the discharge of its functions including the places at which the Tribunal shall have its sittings.

(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to in section 7A and any proceeding before the Tribunal 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) and the Tribunal shall be deemed to be a civil court for the all purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint presenting officers.---(1) A person preferring an appeal to a Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to present his case before the Tribunal.

(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before a Tribunal.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[7L. Orders of Tribunal.--(1) A Tribunal may after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against or may refer the case back to the authority which passed such order with such directions as the Tribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additional evidence, if necessary.

(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1) and shall make such amendment in the order if the mistake is brought to its notice by the parties to the appeal:

Provided that an amendment which has the effect of enhancing the amount due from, or otherwise increasing the liability of, the employer shall not be made under this sub-section, unless the Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.

(3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal.

(4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any court of law.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

[Filling up of vacancies.] Omitted by the Finance Act, 2017 (7 of 2017), s. 159 (w.e.f. 26-5-2017).

[Finality orders constituting a tribunal.] Omitted by s. 159, ibid. (w.e.f. 26-5-2017).

1[7-O. Deposit of amount due, on filing appeal.--No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent. of the amount due from him as determined by an officer referred to in section 7A:

Provided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this section.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[7P. Transfer of certain applications to Tribunals.--All applications which are pending before the Central Government under section 19A before its repeal, shall stand transferred to a Tribunal exercising jurisdiction in respect of establishments in relation to which such applications had been made as if such applications were appeals preferred to the Tribunal.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[7Q. Interest payable by the employer.--The employer shall be liable to pay simple interest at the rate of twelve per cent. per annum or at such higher rate as may be specified in the Scheme on any amount due from him under this Act from the date on which the amount has become so due till the date of its actual payment:

Provided that higher rate of interest specified in the Scheme shall not exceed the lending rate of interest charged by any scheduled bank.]

1. Subs. by Act 7 of 2017, s. 159, for section 7D (w.e.f. 26-5-2017).

1[8. Mode of recovery of moneys due from employers. Any amount due--

(a) from the employer in relation to 2[an establishment] to which any 3[Scheme or the InsuranceScheme] applies in respect of any contribution payable to 4[the Fund or, as the case may be, theInsurance Fund], damages recoverable under section 14B, accumulations required to be transferredunder sub-section (2) of section 15 5[or under sub-section (5) of section 17] or any charges payable byhim under any other provision of this Act or of any provision of the 3[Scheme or the InsuranceScheme]; or

(b) from the employer in relation to an exempted 6[establishment] in respect of any damagesrecoverable under section 14B or any charges payable by him to the appropriate Government underany provision of this Act or under any of the conditions specified 7[under section 17 or in respect ofthe contribution payable by him towards the 8[Pension] Scheme under the said section 17],

may, if the amount is in arrear, 9[be recovered 10[in the manner specified in sections 8B to 8G].]

1. Subs. by Act 37 of 1953, s. 6, for section 8.

2. Subs. by Act 94 of 1956, s. 3, for "a factory".

3. Subs. by Act 99 of 1976, s. 24, for "Scheme" (w.e.f. 1-8-1976).

4. Subs. by s. 24, ibid., for "the Fund" (w.e.f. 1-8-1976).

5. Ins. by Act 28 of 1963, s. 7 (w.e.f. 30-11-1963).

6. Subs. by Act 94 of 1956, s. 3, for "factory".

7. Subs. by Act 16 of 1971, s. 21, for "under section 17" (w.e.f. 23-4-1971).

8. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

9. Subs. by Act 40 of 1973, s. 2, for certain words (w.e.f. 1-11-1973).

10. Subs. by Act 33 of 1988, s. 12, for certain words (w.e.f. 1-7-1990).

1[8A. Recovery of moneys by employers and contractors. (1) 2[The amount of contribution(that is to say the employer's contribution as well as the employee's contribution in pursuance of anyScheme and the employer's contribution in pursuance of the Insurance Scheme)], and any charges 3 for meeting the cost of administering the Fund paid or payable by an employer in respect of an employeeemployed by or through a contractor may be recovered by such employer from the contractor, either bydeduction from any amount payable to the contractor, under any contract or as a debt payable by thecontractor.

(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect ofany employee employed by or through him, may recover from such employee the employee'scontribution 4[under any Scheme] by deduction from the basic wages, dearness allowance and retainingallowance (if any) payable to such employee.

(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct theemployer's contribution or the charges referred to in sub-section (1) from the basic wages, dearnessallowance, and retaining allowance (if any) payable to an employee employed by or through him orotherwise to recover such contribution or charges from such employee.

Explanation.-- In this section, the expressions, "dearness allowance" and "retaining allowance" shallhave the same meanings as in section 6.]

1. Ins. by Act 28 of 1963, s. 8 (w.e.f. 30-11-1963).

2. Subs. by Act 99 of 1976, s. 25, for certain words (w.e.f. 1-8-1976).

3. The words "on the basis of such contribution" omitted by Act 33 of 1988, s. 13. (w.e.f. 1-8-1988).

4. Ins. by Act 99 of 1976, s. 25 (w.e.f. 1-8-1976).

1[8B. Issue of certificate to the Recovery Officer. (1) Where any amount is in arrear under sectionsection 8, the authorised officer may issue, to the Recovery Officer, a certificate under his signaturespecifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed torecover the amount specified therein from the establishment or, as the case may be, the employer by oneor more of the modes mentioned below:--

(a) attachment and sale of the movable or immovable property of the establishment or, as the casemay be, the employer;

(b) arrest of the employer and his detention in prison;

(c) appointing a receiver for the management of the movable or immovable properties of theestablishment or, as the case may be, the employer:

Provided that the attachment and sale of any property under this section shall first be effected againstthe properties of the establishment and where such attachment and sale is insufficient for recovering thewhole of the amount of arrears specified in the certificate, the Recovery Officer may take suchproceedings against the property of the employer for recovery of the whole or any part of such arrears.

(2) The authorised officer may issue a certificate under sub-section (1), notwithstanding thatproceedings for recovery of the arrears by any other mode have been taken.]

1. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

8C. Recovery Officer to whom certificate is to be forwarded. (1) The authorised officer mayforward the certificate referred to in section 8B to the Recovery Officer within whose jurisdiction theemployer--

(a) carries on his business or profession or within whose jurisdiction the principal place of hisestablishment is situate; or

(b) resides or any movable or immovable property of the establishment or the employer is situate.

(2) Where an establishment or the employer has property within the jurisdiction of more than oneRecovery Officers and the Recovery Officer to whom a certificate is sent by the authorised officer--

(a) is not able to recover the entire amount by the sale of the property, movable or immovable,within his jurisdiction; or

(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole orany part of the amount, it is necessary so to do,

he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificatecertified in the prescribed manner and specifying the amount to be recovered to the Recovery Officerwithin whose jurisdiction the establishment or the employer has property or the employer resides, andthereupon that Recovery Officer shall also proceed to recover the amount due under this section as if thecertificate or the copy thereof had been the certificate sent to him by the authorised officer.]

2. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

1[8D. Validity of certificate and amendment thereof. (1) When the authorised officer issues acertificate to a Recovery Officer under section 8B, it shall not be open to the employer to dispute beforethe Recovery Officer the correctness of the amount, and no objection to the certificate on any otherground shall also be entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall havepower to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate bysending an intimation to the Recovery Officer.

(3) The authorised officer shall intimate to the Recovery Officer any order withdrawing or cancellinga certificate or any correction made by him under sub-section (2) or any amendment made undersub-section (4) of section 8E.]

1. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

1[8E. Stay of proceedings under certificate and amendment or withdrawal thereof. (1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount,the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officershall stay the proceedings until the expiry of the time so granted.

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keepthe Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issueof such certificate.

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has beenissued has been modified in appeal or other proceeding under this Act, and, as a consequence thereof, thedemand is reduced but the order is the subject-matter of a further proceeding under this Act, theauthorised officer shall stay the recovery of such part of the amount of the certificate as pertains to thesaid reduction for the period for which the appeal or other proceeding remains pending.

(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of theoutstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorisedofficer shall, when the order which was the subject-matter of such appeal or other proceeding has becomefinal and conclusive, amend the certificate or withdraw it, as the case may be.]

1. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

1[8F. Other modes of recovery. (1) Notwithstanding the issue of a certificate to the RecoveryOfficer under section 8B, the Central Provident Fund Commissioner or any other officer authorised by theCentral Board may recover the amount by any one or more of the modes provided in this section.

(2) If any amount is due from any person to any employer who is in arrears, the Central ProvidentFund Commissioner or any other officer authorised by the Central Board in this behalf may require suchperson to deduct from the said amount the arrears due from such employer under this Act and such personshall comply with any such requisition and shall pay the sum so deducted to the credit of the CentralProvident Fund Commissioner or the officer so authorised, as the case may be:

Provided that nothing in this sub-section shall apply to any part of the amount exempt fromattachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908(5 of 1908).

(3) (i) The Central Provident Fund Commissioner or any other officer authorised by the Central Boardin this behalf may, at any time or from time to time, by notice in writing, require any person from whommoney is due or may become due to the employer or, as the case may be, the establishment or any personwho holds or may subsequently hold money for or on account of the employer or as the case may be, theestablishment, to pay to the Central Provident Fund Commissioner either forthwith upon the moneybecoming due or being held or at or within the time specified in the notice (not being before the moneybecomes due or is held) so much of the money as is sufficient to pay the amount due from the employer inrespect of arrears or the whole of the money when it is equal to or less than that amount.

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently holdany money for or an account of the employer jointly with any other person and for the purposes of thissub-section, the shares of the joint-holders in such account shall be presumed, until the contrary is proved,to be equal.

(iii) A copy of the notice shall be forwarded to the employer at his last address known to the CentralProvident Fund Commissioner or, as the case may be, the officer so authorised and in the case of a jointaccount to all the joint-holders at their last addresses known to the Central Provident Fund Commissioneror the officer so authorised.

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under thissub-section shall be bound to comply with such notice, and, in particular, where any such notice is issuedto a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy orany other document to be produced for the purpose of any entry, endorsement or the like being madebefore payment is made notwithstanding any rule, practice or requirement to the contrary.

(v) Any claim respecting any property in relation to which a notice under this sub-section has beenissued arising after the date of the notice shall be void as against any demand contained in the notice.

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement onoath that the sum demanded or any part thereof is not due to the employer or that he does not hold anymoney for or on account of the employer, then, nothing contained in this sub-section shall be deemed torequire such person to pay any such sum or part thereof, as the case may be, but if it is discovered thatsuch statement was false in any material particular, such person shall be personally liable to the CentralProvident Fund Commissioner or the officer so authorised to the extent of his own liability to theemployer on the date of the notice, or to the extent of the employers liability for any sum due under thisAct, whichever is less.

(vii) The Central Provident Fund Commissioner or the officer so authorised may, at any time or fromtime to time, amend or revoke any notice issued under this sub-section or extend the time for making anypayment in pursuance of such notice.

(viii) The Central Provident Fund Commissioner or the officer so authorised shall grant a receipt forany amount paid in compliance with a notice issued under this sub-section, and the person so paying shallbe fully discharged from his liability to the employer to the extent of the amount so paid.

(ix) Any person discharging any liability to the employer after the receipt of a notice under thissub-section shall be personally liable to the Central Provident Fund Commissioner or the officer soauthorised to the extent of his own liability to the employer so discharged or to the extent of theemployer's liability for any sum due under this Act, whichever is less.

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuancethereof to the Central Provident Fund Commissioner or the officer so authorised he shall be deemed to bean employer in default in respect of the amount specified in the notice and further proceedings may betaken against him for the realisation of the amount as if it were an arrear due from him, in the manner provided in sections 8B to 8E and the notice shall have the same effect as an attachment of a debt by theRecovery Officer in exercise of his powers under section 8B.

(4) The Central Provident Fund Commissioner or the officer authorised by the Central Board in thisbehalf may apply to the court in whose custody there is money belonging to the employer for payment tohim of the entire amount of such money, or if it is more than the amount due, an amount sufficient todischarge the amount due.

(5) The Central Provident Fund Commissioner or any officer not below the rank of AssistantProvident Fund Commissioner may, if so authorised by the Central Government by general or specialorder, recover any arrears of amount due from an employer or, as the case may be, from the establishmentby distraint and sale of his or its movable property in the manner laid down in the Third Schedule to theIncome- tax Act, 1961 (43 of 1961).]

1. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

1[8G. Application of certain provisions of Income-tax Act. The provisions of the Second and ThirdSchedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules,1962, as in force from time to time, shall apply with necessary modifications as if the said provisions andthe rules referred to the arrears of the amount mentioned in section 8 of this Act instead of to theincome-tax:

Provided that any reference in the said provisions and the rules to the assessee shall be construed asa reference to an employer as defined in this Act.]

1. Ins. by Act 33 of 1988, s. 14 (w.e.f. 1-7-1990).

For the purposes of the Indian Income-tax Act,1922, the Fund shall be deemed to be a recognised provident fund within the meaning of Chapter IXA ofthat Act:

1[Provided that nothing contained in the said Chapter shall operate to render ineffective any provisionof the Scheme (under which the Fund is established) which is repugnant to any of the provisions of thatChapter or of the rules made thereunder.]

1. Ins. by Act 37 of 1953, s. 7.

(1) The amount standing to the credit of any member in theFund 1[or of any exempted employee in a provident fund] shall not in any way be capable of beingassigned or charged and shall not be liable to attachment under any decree or order of any court in respectof any debt or liability incurred by the member 1[or the exempted employee], and neither the officialassignee appointed under the Presidency-towns Insolvency Act, 1909 (3 of 1909), nor any receiverappointed under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to, or have any claimon, any such amount.

2[(2) Any amount standing to the credit of a member in the Fund or of an exempted employee in aprovident fund at the time of his death and payable to his nominee under the Scheme or the rules of theprovident fund shall, subject to any deduction authorised by the said Scheme or rules, vest in the nomineeand shall be free from any debt or other liability incurred by the deceased or the nominee before the deathof the member of the exempted employee 3[and shall also not be liable to attachment under any decree ororder of any court].

4[(3) The provisions of sub-section (1) and sub-section (2) shall, so far as may be, apply in relation tothe family pension or any other amount payable under the 5[Pension] Scheme 6[and also in relation to any amount payable under the Insurance Scheme] as they apply in relation to any amount payable out of theFund.]

1. Ins. by s. 8, ibid.

2. Subs. by s. 8, ibid., for sub-section (2).

3. Ins. by Act 33 of 1988, s. 15 (w.e.f. 1-8-1988).

4. Ins. by Act 16 of 1971, s. 22 (w.e.f. 23-4-1971).

5. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f.16-11-1995).

6. Ins. by Act 99 of 1976, s. 26 (w.e.f. 1-8-1976).

1[(1)] 2[Where any employer isadjudicated insolvent or, being a company, an order for winding up is made, the amount due--

(a) from the employer in relation to 3[an establishment] to which any 4[Scheme or the InsuranceScheme] applies in respect of any contribution payable to the Fund 5[or, as the case may be, theInsurance Fund], damages recoverable under section 14B, accumulations required to be transferredunder sub-section (2) of section 15 or any charges payable by him under any other provision of thisAct or of any provision of the 6[Scheme or the Insurance Scheme]; or

(b) from the employer in relation to an exempted ⁷[establishment] in respect of any contributionto ⁸[the Provident Fund or any Insurance Fund] (in so far it relates to exempted employees), under thethe rules of ⁸[the Provident Fund or any Insurance Fund], ⁹[any contribution payable by him towardsthe Family Pension Fund under sub-section (6) of section 17], damages recoverable under section14B or any charges payable by him to the appropriate Government under any provision of this Act orunder any of the conditions specified under section 17,

shall, where the liability thereof has accrued before the order of adjudication or winding up is made, bedeemed to be included among the debts which under section 49 of the Presidency-towns Insolvency Act,1909 (3 of 1909), or under section 61 of the Provincial Insolvency Act, 1920 (5 of 1920), or under¹⁰[section 530 of the Companies Act, 1956 (1 of 1956)], are to be paid in priority to all other debts in thedistribution of the property of the insolvent or the assets of the company being wound up, as the case maybe.

¹¹[Explanation.--In this sub-section and in section 17, "insurance fund" means any fund establishedby an employer under any scheme for providing benefits in the nature of life insurance to employees,whether linked to their deposits in provident fund or not, without payment by the employees of anyseparate contribution or premium in that behalf.

¹²[(2) Without prejudice to the provisions of sub-section (1), if any amount is due from an employer¹³[whether in respect of the employees contribution (deducted from the wages of the employee) or theemployer's contribution], the amount so due shall be deemed to be the first charge on the assets of theestablishment, and shall, notwithstanding anything contained in any other law for the time being in force,be paid in priority to all other debts.]

1. Section 11 re-numbered as sub-section (1) of that section by Act 40 of 1973, s. 3 (w.e.f. 1-11-1973).

2. Subs. by Act 37 of 1953, s. 9, for certain words.

3. Subs. by Act 94 of 1956, s. 3, for "a factory".

4. Subs. by Act 99 of 1976, s. 27, for "Scheme" (w.e.f. 1-8-1976).

5. Ins. by s. 27, ibid. (w.e.f. 1-8-1976).

6. Subs. by Act 99 of 1976, s. 27, for "Scheme" (w.e.f. 1-8-1976).

7 Subs. by Act 94 of 1956, s. 3, for "Factory".

8. Subs. by Act 99 of 1976, s. 27, for "the provident fund" (w.e.f. 1-8-1976).

9. Ins. by Act 16 of 1971, s. 23 (w.e.f. 23-4-1971).

10. Subs. by Act 40 of 1973, s. 3, for certain words (w.e.f. 1-11-1973).

11. Ins. by Act 99 of 1976, s. 27 (w.e.f. 1-8-1976).

12. Ins. by Act 40 of 1973, s. 3 (w.e.f. 1-11-1973).

13. Subs. by Act 33 of 1988, s. 16, for certain words (w.e.f. 1-8-1988).

1[12. Employer not to reduce wages, etc. No employer in relation to 2[an establishment] to whichany 3[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to 4[the Fund or the Insurance Fund] or any charges under this Act or the 5[Scheme or thethe Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the5[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old agepension, gratuity 6[Provident Fund or Life Insurance] to which the employee is entitled under the terms ofof his employment, express or implied.]

1. Subs. by Act 37 of 1953, s. 10, for section 12.

2. Subs. by Act 94 of 1956, s. 3, for "a factory".

3. Subs. by Act 99 of 1976, s. 28, for "Scheme" (w.e.f. 1-8-1976).

4. Subs. by Act 99 of 1976, s. 28, for "the Fund" (w.e.f. 1-8-1976).

5. Subs. by s. 28, ibid., for "Scheme" (w.e.f. 1-8-1976).

6. Subs. by s. 28, ibid., "or provident Fund" (w.e.f. 1-8-1976)

(1) The appropriate Government may, by notification in the Official Gazette,appoint such persons as it thinks fit to be Inspectors for the purposes of this Act 1[, the Scheme] 2[, the 3[Pension] Scheme or the Insurance Scheme], and may define their jurisdiction.

(2) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into thecorrectness of any information furnished in connection with this Act or with any 4Scheme or theInsurance Scheme or for the purpose of ascertaining whether any of the provisions of this Act or of any4[Scheme or the Insurance Scheme] have been complied with 5[in respect of 6[an establishment] to whichwhich any 4[Scheme or the Insurance Scheme] applies or for the purpose of ascertaining whether theprovisions of this Act or any Scheme or the Insurance Scheme are applicable to any 7[establishment]to which the 4[Scheme or the Insurance Scheme] has not been applied or for the purpose of determiningwhether the conditions subject to which exemption was granted under section 17 are being complied withby the employer in relation to an exempted 7[establishment]]--

(a) require an employer 8or any contractor from whom any amount is recoverable under section8A to furnish such information as he may consider necessary 9;

(b) at any reasonable time 10[and with such assistance, if any, as he may think fit, enter andsearch] any7[establishment] or any premises connected therewith and require any one found incharge thereof to produce before him for examination any accounts, books, registers and otherdocuments relating to the employment of persons or the payment of wages in the 7[establishment];

(c) examine, with respect to any matter relevant to any of the purposes aforesaid, the employer8[or any contractor from whom any amount is recoverable under section 8A], his agent or servant orany other person found in charge of the 7[establishment] of any premises connected therewith orwhom the Inspector has reasonable cause to believe to be or to have been, an employee in the7[establishment];

11(d) make copies of, or take extracts from, any book, register or other document maintained inrelation to the establishment and, where he has reason to believe that any offence under this Act hasbeen committed by an employer, seize with such assistance as he may think fit, such book, register orother document or portions thereof as he may consider relevant in respect of that offence;

(e) exercise such other powers as the 4[Scheme or the Insurance Scheme] may provide.

12[(2A) Any Inspector appointed under sub-section (1) may, for the purpose of inquiring into thecorrectness of any information furnished in connection with the 13[Pension] Scheme or for the purpose ofascertaining whether any of the provisions of this Act or of the 13[Pension] Scheme have been compliedwith in respect of an establishment to which the 13[Pension] Scheme applies, exercise all or any of thepowers conferred, on him under clause (a), clause (b), clause (c) or clause (d) of sub-section (2).

14[ 15[(2B)] The provisions of the Code of Criminal Procedure, 1898 (5 of 1898) shall, so far as may be,be, apply to any search or seizure under sub-section (2), 16[or under sub-section (2A), as the case may be],as they apply to any search or seizure made under the authority of a warrant issued under section 98 of thesaid Code.

17

1. Subs. by Act 16 of 1971, s. 24, for "or of any Scheme" (w.e.f. 23-4-1971).

2. Subs. by Act 99 of 1976, s. 29, for or "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 99 of 1976, s. 29, for "Scheme" (w.e.f. 1-8-1976).

5. Ins. by Act 37 of 1953, s. 11.

6. Subs. by Act 94 of 1956, s. 3, for a "factory".

7. Subs. by s. 3, ibid., for "factory".

8. Ins. by Act 28 of 1963, s. 9 (w.e.f. 30-11-1963).

9. The words in relation to the Scheme omitted by Act 37 of 1953, s. 11.

10. Subs. by Act 28 of 1963, s. 9, for enter (w.e.f. 30-11-1963).

11. Subs. by s. 9,ibid., for clause (d) (w.e.f. 30-11-1963).

12. Ins. by Act 16 of 1971, s. 24.

13. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

14. Ins. by Act 28 of 1963, s. 9 (w.e.f. 30-11-1963).

15. Sub-section (2A) re-numbered as sub-section (2B) by Act 16 of 1971, s. 24 (w.e.f. 23-4-1971).

16. Ins. by s. 24, ibid. (w.e.f. 23-4-1971).

17. Sub-section (3) omitted by Act 33 of 1988, s. 17 (w.e.f. 1-8-1988).

(1) Whoever, for the purpose of avoiding any payment to be made by himself underthis Act 1[, the Scheme 2[, the 3[Pension] Scheme or the Insurance Scheme]] or of enabling any otherperson to avoid such payment, knowingly makes or causes to be made any false statement or falserepresentation shall be punishable with imprisonment for a term which may extend to 4[one year, or withfine of five thousand rupees, or with both.]

5[(1A) An employer who contravenes, or makes default in complying with, the provisions of section6 or clause (a) of sub-section (3) of section 17 in so far as it relates to the payment of inspection charges,or paragraph 38 of the Scheme in so far as it relates to the payment of administrative charges, shall bepunishable with imprisonment for a term which may extend to 6[three years] but--

(a) which shall not be less than7[one year and a fine of ten thousand rupees] in case of default inpayment of the employees' contribution which has been deducted by the employer from theemployees' wages;

8[(b) which shall not be less than six months and a fine of five thousand rupees, in any othercase;]

9

Provided that the court may, for any adequate and special reasons to be recorded in the judgment,impose a sentence of imprisonment for a lesser term 10.]

11[(1B) An employer who contravenes, or makes default in complying with, the provisions of section6C, or clause (a) of sub-section (3A) of section 17 in so far as it relates to the payment of inspectioncharges, shall be punishable with imprisonment for a term which may extend to 12[one year] but which shall not be less than 13[six months] and shall also be liable to fine which may extend to 14[five thousandrupees]:

Provided that the court may, for any adequate and special reasons to be recorded in the judgment,impose a sentence of imprisonment for a lesser term 15.

(2) 16[Subject to the provisions of this Act, the Scheme] 17[, the 18[Pension Scheme or the InsuranceScheme] may provide that any person who contravenes, or makes default in complying with, any of theprovisions thereof shall be punishable with imprisonment for a term which may extend 19[one year, or withwith fine which may extend to four thousand rupees, or with both].

20[(2A) Whoever contravenes or makes default in complying with any provision of this Act or of anycondition subject to which exemption was granted under section 17 shall, if no other penalty is elsewhereprovided by or under this Act for such contravention or non-compliance, be punishable withimprisonment which may extend to 19[six months, but which shall not be less than one month, and shallalso be liable to fine which may extend to five thousand rupees.]

21

1. Subs. by Act 16 of 1971, s. 25, for "or under any Scheme".

2. Subs. by Act 99 of 1976, s. 30, for "or the Family Pension Scheme" (w.e.f. 7-9-1976).

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. 18, for "six months, or with fine which may extend to one thousand rupees, or with both"(w.e.f. 1-8-1988).

5. Ins. by Act 40 of 1973, s. 4 (w.e.f. 1-11-1973).

6. Subs. by Act 33 of 1988, s. 18, for "six months" (w.e.f. 1-8-1988).

7. Subs. by s. 18, ibid., for "three months" (w.e.f. 1-8-1988).

8. Subs. by Act 33 of 1988, s. 18 (w.e.f. 1-8-1988).

9. The words "and shall also be liable to fine which may extend to two thousand rupees" omitted by s. 18,ibid.(w.e.f. 1-8-1988).

10. The words "or of fine only in lieu of imprisonment" omitted by s. 18, ibid. (w.e.f. 1-8-1988).

11. Ins. by Act 99 of 1976, s. 30 (w.e.f. 7-9-1976).

12. Subs. by Act 33 of 1988, s. 18, for "six months" (w.e.f. 1-8-1988).

13. Subs. by Act 33 of 1988, s. 18, for "one month" (w.e.f. 1-8-1988).

14. Subs. by s. 18, ibid., for "two thousand rupees" (w.e.f. 1-8-1988).

15. The words "or of fine only in lieu of imprisonment" omitted by s. 18, ibid. (w.e.f. 1-8-1988).

16. Subs. by Act 40 of 1973, s. 4, for "the scheme" (w.e.f. 1-11-1973).

17. Subs. by Act 99 of 1976, s. 30, "or the family pension" (w.e.f. 7-9-1976).

18. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

19. Subs. by Act 33 of 1988, s. 18, for "six months, or with fine which may extend to one thousand rupees, or with both"(w.e.f. 1-8-1988).

20. Ins. by Act 37 of 1953, s. 12.

21. Omitted by Act 40 of 1973, s. 4 (w.e.f. 1-11-1973).

1[14A. Offences by companies. (1) If the person committing an offence under this Act 2[, theScheme or 3[the 4[Pension] Scheme or the Insurance Scheme]] is a company, every person, who at thetime the offence was committed was in charge of, and was responsible to, the company for the conduct ofthe business of the company, as well as the company, shall be deemed to be guilty of the offence and shallbe liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to anypunishment, if he proves that the offence was committed without his knowledge or that he exercised alldue diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act 2[, theScheme or 3[the 4[Pension] Scheme or the Insurance Scheme has been committed by a company and it isproved that the offence has been committed with the consent or connivance of, or is attributable to, anyneglect on the part of, any director or manager, secretary or other officer of the company, such director,manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to beproceeded against and punished accordingly.

Explanation.--For the purposes of this section,--

(a) "company" means any body corporate and includes a firm and other association ofindividuals; and

(b) "director" in relation to a firm, means a partner in the firm.]

1. Ins. by Act 37 of 1953, s. 13.

2. Subs. by Act 16 of 1971, s. 26, for "or the scheme made thereunder".

3. Subs. by Act 99 of 1976, s. 31, for "the family pension scheme" (w.e.f. 7-9-1976).

4. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

3[14AA. Enhanced punishment in certain cases after previous conviction. Whoever, havingbeen convicted by a Court of an offence punishable under this Act, the Scheme or 1[the 2[Pension]Scheme or the Insurance Scheme, commits the same offence shall be subject for every such subsequentoffence to imprisonment for a term which may extend to 4[five years, but which shall not be less than twotwo years, and shall also be liable to a fine of twenty-five thousand rupees.]

1. Subs. by Act 99 of 1976, s. 31, for "the family pension scheme" (w.e.f. 7-9-1976).

2. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

3. Ins. by Act 40 of 1973, s. 5.

4. Subs. by Act 33 of 1988, s. 19, for "one year but which shall not be less than three months and shall also be liable to finewhich may extend to four thousand rupees" (w.e.f. 1-8-1988).

1[14AB. Certain offences to be cognizable. Notwithstanding anything contained in the Code ofCriminal Procedure, 1898 (5 of 1898.) an offence relating to default in payment of contribution by theemployer punishable under this Act shall be cognizable.]

1. Ins. by Act 40 of 1973, s. 5.

1[14AC. Cognizance and trial of offences. (1) No court shall take cognizance of any offencepunishable under this Act, the Scheme or 2[the 3[Pension] Scheme or the Insurance Scheme except on areport in writing of the facts constituting such offence made with the previous sanction of the CentralProvident Fund Commissioner or such other officer as may be authorised by the Central Government, bynotification in the Official Gazette, in this behalf, by an Inspector appointed under section 13.

(2) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try anyoffence under this Act or the Scheme or 4[the 5[Pension] Scheme or the Insurance Scheme.]

1. Ins. by Act 40 of 1973, s. 5.

2. Subs. by Act 99 of 1976, s. 31, for "the family pension scheme" (w.e.f. 7-9-1976).

3. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

4. Subs. by Act 99 of 1976, s. 31, for "the family pension scheme" (w.e.f. 7-9-1976).

5. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

1[14B. Power to recover damages. Where an employer makes default in the payment of anycontribution to the Fund 3[, the 2[Pension] Fund or the Insurance Fund] or in the transfer of accumulationsaccumulations required to be transferred by him under sub-section (2) of section 15 3[or sub-section (5) ofof section 17] or in the payment of any charges payable under any other provision of this Act or of 5[anyScheme or Insurance Scheme] or under any of the conditions specified under section 17, 6[the CentralProvident Fund Commissioner or such other officer as may be authorised by the Central Government, bynotification in the Official Gazette, in this behalf] may recover 7[from the employer by way of penaltysuch damages, not exceeding the amount of arrears, as may be specified in the Scheme:]

8[Provided that before levying and recovering such damages, the employer shall be given a reasonablereasonable opportunity of being heard]:

9[Provided further that the Central Board may reduce or waive the damages levied under this sectionin relation to an establishment which is a sick industrial company and in respect of which a scheme forrehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction establishedunder section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985, subject to such termsand conditions as may be specified in the Scheme.]]

1. Ins. by Act 37 of 1953, s. 13.

2. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

3. Subs. by Act 99 of 1976, s. 32, for "or the family pension fund" (w.e.f. 1-8-1976).

4. Ins. by Act 28 of 1963, s. 10 (w.e.f. 30-11-1963).

5. Subs. by Act 99 of 1976, s. 32, for "any scheme" (w.e.f. 1-8-1976).

6. Subs. by Act 40 of 1973, s. 6, for "the appropriate Government" (w.e.f. 1-11-1973).

7. Subs. by Act 33 of 1988, s. 20, for "from the employer such damages, not exceeding the amount of arrears as it may think fit toimpose" (w.e.f. 1-9-1991).

8. Ins. by Act 40 of 1973, s. 6 (w.e.f. 1-11-1973).

9. Ins. by Act 33 of 1988, s. 20 (to be notified).

1[14C. Power of court to make orders.(1) Where an employer is convicted of an offence ofmaking default in the payment of any contribution to the Fund 2[, the 3[Pension] Fund or the InsuranceFund or in the transfer of accumulations required to be transferred by him under sub-section (2) ofsection 15 or sub-section (5) of section 17, the court may, in addition to awarding any punishment, byorder in writing require him within a period specified in the order (which the court may, if it thinks fit andon application in that behalf, from time to time, extend), to pay the amount of contribution or transfer theaccumulations, as the case may be, in respect of which the offence was committed.

(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act inrespect of the continuation of the offence during the period or extended period, if any, allowed by thecourt, but if, on the expiry of such period or extended period, as the case may be, the order of the courthas not been fully complied with, the employer shall be deemed to have committed a further offence andshall be punished with imprisonment in respect thereof under section 14 and shall also be liable to payfine which may extend to one hundred rupees for every day after such expiry on which the order has notbeen complied with.]

1. Ins. by Act 40 of 1973, s. 7 (w.e.f. 1-11-1973).

2. Subs. by Act 99 of 1976, s. 33, for "or the Family Pension Fund" (w.e.f. 1-8-1976).

3. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

(1) 1[Subject to the provisions ofsection 17, every employee who is a subscriber to any provident fund of 2[an establishment] to which this act applies shall, pending the application of a Scheme to the 3[establishment] in which he is employed,continue to be entitled to the benefits accruing to him under the provident fund, and the provident fundshall continue to be maintained in the same manner and subject to the same conditions as it would havebeen if this Act had not been passed.

(2) 4[On the application of any Scheme to 5[an establishment], the accumulations in any providentfund of the3[establishment] standing to the credit of the employees who become members of the Fundestablished under the Scheme] shall, notwithstanding anything to the contrary contained in any law for thetime being in force or in any deed or other instrument establishing the provident fund but subject to theprovisions, if any, contained in the Scheme, be transferred to the Fund established under the Scheme, andshall be credited to the accounts of the employees entitled thereto in the Fund.

1. Subs. by Act 37 of 1953, s. 14, for certain words.

2. Subs. by Act 94 of 1956, s. 3, for "a factory".

3. Subs. by Act 94 of 1956, s. 3, for "factory".

4. Subs. by Act 37 of 1953, s. 14, for certain words.

5. Subs. by Act 94 of 1956, s. 3, for "a factory".

1[(1) This Act shall not apply--

(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), orunder any other law for the time being in force in any State relating to co-operative societies,employing less than fifty persons and working without the aid of power; or

2[(b) to any other establishment belonging to or under the control of the Central Government or aState Government and whose employees are entitled to the benefit of contributory provident fund orold age pension in accordance with any scheme or rule framed by the Central Government or theState Government governing such benefits; or

(c) to any other establishment set up under any Central, Provincial or State Act and whoseemployees are entitled to the benefits of contributory provident fund or old age pension in accordancewith any scheme or rule framed under that Act governing such benefits; 3

4

5[(2) If the Central Government is of opinion that having regard to the financial position of any classof 6[establishments] or other circumstances of the case, it is necessary or expedient so to do, it may, bynotification in the Official Gazette, and subject to such conditions as may be specified in the notification,exempt 7[whether prospectively or retrospectively] that class of 6[establishments] from the operation ofthis Act for such period as may be specified in the notification.]

1. Subs. by Act 46 of 1960, s. 5, for sub-section (1) (w.e.f. 31-12-1960).

2. Subs. by Act 33 of 1988, s. 21, for clause (b) (w.e.f. 1-8-1988).

3. The word "or" omitted by Act 10 of 1998, s. 5 (w.e.f. 22-9-1997).

4. Omitted by s. 5, ibid. (w.e.f. 22-9-1997).

5. Ins. by Act 37 of 1953, s. 15.

6. Subs. by Act 94 of 1956, s. 3, for "factories".

7. Ins. by Act 33 of 1988, s. 21 (w.e.f. 1-8-1988)

1[16A. Authorising certain employers to maintain provident fund accounts. (1) The CentralGovernment may, on an application made to it in this behalf by the employer and the majority ofemployees in relation to an establishment employing one hundred or more persons, authorise theemployer, by an order in writing, to maintain a provident fund account in relation to the establishment,subject to such terms and conditions as may be specified in the Scheme:

Provided that no authorisation shall be made under this sub-section if the employer of suchestablishment had committed any default in the payment of provident fund contribution or had committedany other offence under this Act during the three years immediately preceding the date of suchauthorisation.

(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1),the employer in relation to such establishment shall maintain such account, submit such return, depositthe contribution in such manner, provide for such facilities for inspection, pay such administrativecharges, and abide by such other terms and conditions, as may be specified in the Scheme.

(3) Any authorisation made under this section may be cancelled by the Central Government by orderin writing if the employer fails to comply with any of the terms and conditions of the authorisation orwhere he commits any offence under any provision of this Act:

Provided that before cancelling the authorisation, the Central Government shall give the employer areasonable opportunity of being heard.]

1. Section 16 A shall stand ins (date to be notified) by s. 22, ibid.

1[17. Power to exempt.(1) The appropriate Government may, by notification in the OfficialGazette and subject to such conditions as may be specified in the notification, 2[exempt, whetherprospectively or retrospectively, from the operation] of all or any of the provisions of any Scheme

(a) any 3[establishment] to which this Act applies if, in the opinion of the appropriateGovernment, the rules of its provident fund with respect to the rates of contribution are not lessfavourable than those specified in section 6 and the employees are also in enjoyment of otherprovident fund benefits which on the whole are not less favourable to the employees than the benefitsprovided under this Act or any Scheme in relation to the employees in any other 3establishment of asimilar character; or

(b) and 3[establishment] if the employees of such 3[establishment] are in enjoyment of benefits inthe nature of provident fund, pension or gratuity and the appropriate Government is of opinion thatsuch benefits, separately or jointly, are on the whole not less favourable to such employees than thebenefits provided under this Act or any Scheme in relation to employees in any other 3establishmentof a similar character:

4[Provided that no such exemption shall be made except after consultation with the Central Boardwhich on such consultation shall forward its views on exemption to the appropriate Government withinsuch time limit as may be specified in the Scheme.]

5

⁶[(1A) Where an exemption has been granted to an establishment under clause (a) of sub-section(1),--

(a) the provisions of sections 6, 7A, 8 and 14B shall, so far as may be, apply to the employer ofthe exempted establishment in addition to such other conditions as may be specified in thenotification granting such exemption, and where such employer contravenes, or makes default incomplying with any of the said provisions or conditions or any other provisions of this Act, he shallbe punishable under section 14 as if the said establishment had not been exempted under the saidclause (a);

(b) the employer shall establish a Board of Trustees for the administration of the provident fundconsisting of such number of members as may be specified in the Scheme;

(c) the terms and conditions of service of members of the Board of Trustees shall be such as maybe specified in the Scheme;

(d) the Board of Trustees constituted under clause (b) shall

(i) maintain detailed accounts to show the contributions credited, withdrawals made andinterest accrued in respect of each employee;

(ii) submit such returns to the Regional Provident Fund Commissioner or any other officer asthe Central Government may direct from time to time;

(iii) invest the provident fund monies in accordance with the directions issued by the CentralGovernment from time to time;

(iv) transfer, where necessary, the provident fund account of any employee; and

(v) perform such other duties as may be specified in the Scheme.

(1B) Where the Board of Trustees established under clause (b) of sub-section (1A) contravenes, ormakes default in complying with, any provisions of clause (d) of that sub-section, the Trustees of the saidBoard shall be deemed to have committed an offence under sub-section (2A) of section 14 and shall bepunishable with the penalties provided in that sub-section.

⁷[(1C)The appropriate Government may, by notification in the Official Gazette, and subject to thecondition on the pattern of investment of pension fund and such other conditions as may be specifiedtherein, exempt any establishment or class of establishments from the operation of the Pension Scheme ifthe employees of such establishment or class of establishments are either members of any other pensionscheme or propose to be members of such pension scheme, where the pensionary benefits are at par ormore favourable than the Pension Scheme under this Act.]]

(2) Any Scheme may make provision for exemption of any person or class of persons employed inany ⁸[establishment] to which the Scheme applies from the operation of all or any of the provisions of theScheme, if such person or class of persons is entitled to benefits in the nature of provident fund, gratuityor old age pension and such benefits, separately or jointly, are on the whole not less favourable than thebenefits provided under this Act or the Scheme:

Provided that no such exemption shall be granted in respect of a class of persons unless theappropriate Government is of opinion that the majority of persons constituting such class desire tocontinue to be entitled to such benefits.

⁹[(2A) ¹⁰The Central Provident Fund Commissioner may, if requested so to do by the employer, bynotification in the Official Gazette, and subject to such conditions as may be specified in the notification,exempt, whether prospectively or retrospectively, any establishment from the operation of all or any ofthe provisions of the Insurance Scheme, if he is satisfied] that the employees of such establishment are,without making any separate contribution or payment of premium, in enjoyment of benefits in the natureof life insurance, whether linked to their deposits in provident fund or not, and such benefits are morefavourable to such employees than the benefits admissible under the Insurance Scheme.

(2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme may provide forthe exemption of any person or class of persons employed in any establishment and covered by thatScheme from the operation of all or any of the provisions thereof, if the benefits in the nature of lifeinsurance admissible to such person or class of persons are more favourable than the benefits providedunder the Insurance Scheme.]

¹¹[(3) Where in respect of any person or class of persons employed in an establishment an exemptionis granted under this section from the operation of all or any of the provisions of any Scheme (whethersuch exemption has been granted to the establishment wherein such person or class of persons isemployed or to the person or class of persons as such), the employer in relation to such establishment--

(a) shall, in relation to the provident fund, pension and gratuity to which any such person or classof persons is entitled, maintain such accounts, submit such returns, make such investment, provide forsuch facilities for inspection and pay such inspection charges, as the Central Government may direct;

(b) shall not, at any time after the exemption, without the leave of the Central Government,reduce the total quantum of benefits in the nature of pension, gratuity or provident fund to which anysuch person or class of persons was entitled at the time of the exemption; and

(c) shall, where any such person leaves his employment and obtains re-employment in anotherestablishment to which this Act applies, transfer within such time as may be specified in this behalfby the Central Government, the amount of accumulations to the credit of that person in the providentfund of the establishment left by him to the credit of that persons account in the provident fund of theestablishment in which he is re-employed or, as the case may be, in the Fund established under theScheme applicable to the establishment.

¹²[(3A) Where, in respect of any person or class of persons employed in any establishment, anexemption is granted under sub-section (2A) or sub-section (2B) from the operation of all or any of theprovisions of the Insurance Scheme (whether such exemption is granted to the establishment whereinsuch person or class of persons is employed or to the person or class of persons as such), the employer inrelation to such establishment--

(a) shall, in relation to the benefits in the nature of life insurance, to which any such person orclass of persons is entitled, or any insurance fund, maintain such accounts, submit such returns, makesuch investments, provide for such facilities for inspection and pay such inspection charges, as theCentral Government may direct;

(b) shall not, at any time after the exemption without the leave of the Central Government, reducethe total quantum of benefits in the nature of life insurance to which any such person or class ofpersons was entitled immediately before the date of the exemption; ¹³

¹⁴

(4) Any exemption granted under this section may be cancelled by the authority which granted it, byorder in writing, if an employer fails to comply,--

(a) in the case of an exemption granted under sub-section (1), with any of the conditions imposedunder that sub-section ¹⁵or sub-section (1A) or with any of the provisions of sub-section (3); ¹⁶

¹⁷[(aa) in the case of an exemption granted under sub-section ¹⁸(IC), with any of the conditionsimposed under that sub-section; and]

(b) in the case of an exemption granted under sub-section (2), with any of the provisions ofsub-section (3);

¹⁹[(c) in the case of an exemption granted under sub-section (2A), with any of the conditionsimposed under that sub-section or with any of the provisions of sub-section (3A);

(d) in the case of an exemption granted under sub-section (2B), with any of the provisions ofsub-section (3A).]

²⁰[(5) Where any exemption granted under sub-section (1), sub-section ²¹[(IC) ²²[, sub-section (2),sub-section (2A) or sub-section (2B)] is cancelled, the amount of accumulations to the credit of everyemployee to whom such exemption applied, in the provident fund ²²[the ²³[pension] fund or the insurancefund of the establishment in which he is employed ²⁴[together with any amount forfeited from theemployer's share of contribution to the credit of the employee who leaves the employment before thecompletion of the full period of service shall be transferred within such time and in such manner as maybe specified in the Scheme or the ²³[Pension] Scheme ²²[or the Insurance Scheme] to the credit of hisaccount in the Fund or the ²³[Pension] Fund ²²[or the Insurance Fund], as the case may be.

(6) Subject to the provisions of sub-section ²¹[(IC) the employer of an exempted establishment or ofan exempted employee of an establishment to which the provisions of the ²³[Pension] Scheme apply, shall,notwithstanding any exemption granted under sub-section (1) or sub-section (2), pay to the ²³[Pension]Fund such portion of the employers contribution ²⁵ to its provident fund within such time and in suchmanner as may be specified in the ²³[Pension] Scheme.]]]

1. Subs. by Act 37 of 1953, s. 16, for section 17.

2. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988).

3. Subs. by Act 94 of 1956, s. 3, for "factory".

4. Added by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).

5. The Explanation omitted by Act 28 of 1963, s. 11 (w.e.f. 30-11-1963).6. Subs. by Act 33 of 1988, s. 23, for sub-section (IA) (w.e.f. 1-10-1988).

7. Subs. by Act 25 of 1996, s. 7, for sub-section (IC) (w.e.f. 16-11-1996).

8. Subs. by Act 94 of 1956, s. 3, for "factory".

9. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).

10. Subs. by Act 33 of 1988, s. 23, for certain words (w.e.f. 1-10-1988).

11. Subs. by Act 28 of 1963, s. 11, for sub-section (3) (w.e.f. 30-11-1963).

12. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).

13. The word "and" omitted by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).

14. Omitted by s. 23, ibid. (w.e.f. 1-10-1988).

15. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).

16. The word "and" omitted by Act 16 of 1971, s. 27 (w.e.f. 23-4-1971).

17. Ins. by s. 27, ibid. (w.e.f. 23-4-1971).

18. Subs. by Act 33 of 1988, s. 23, for "(IA)" (w.e.f. 1-10-1985).

19. Ins. by Act 99 of 1976, s. 34 (w.e.f. 1-8-1976).

20. Subs. by Act 16 of 1971, s. 27, for sub-section (5) (w.e.f. 23-4-1971).

21. Subs. by Act 33 of 1988, s. 23, for "(IA)" (w.e.f. 1-10-1985).

22. Subs. by Act 99 of 1976, s. 27, for certain words (w.e.f. 1-8-1976).

23. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

24. Ins. by Act 33 of 1988, s. 23 (w.e.f. 1-10-1988).

25. The words "as well as the employees' Contribution" omitted by Act 25 of 1996, s. 7 (w.e.f. 16-11-1995).

1[17A. Transfer of accounts. (1) Where an employee employed in an establishment to which thisAct applies leaves his employment and obtains re-employment in another establishment to which this Actdoes not apply, the amount of accumulations to the credit of such employee in the Fund, or as the casemay be, in the provident fund of the establishment left by him shall be transferred, within such time asmay be specified by the Central Government in this behalf, to the credit of his account in the providentfund of the establishment in which he is re-employed, if the employee so desires and the rules in relationto that provident fund permit such transfer.

(2) Where an employee employed in an establishment to which this Act does not apply leaves hisemployment and obtains re-employment in another establishment to which this Act applies, the amount ofaccumulations to the credit of such employee in the provident fund of the establishment left by him may,if the employee so desires and the rules in relation to such provident fund permit, be transferred to thecredit of his account in the Fund or as the case may be, in the provident fund of the establishment inwhich he is re-employed.]

1. Ins. by Act 28 of 1963, s. 12 (w.e.f. 30-11-1963).

1[17AA. Act to have effect notwithstanding anything contained in Act 31 of 1956. Theprovisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in theLife Insurance Corporation Act, 1956.]

1. Ins. by Act 99 of 1976, s. 35 (w.e.f. 1-8-1976).

1[17B. Liability in case of transfer of establishment.Where an employer, in relation to anestablishment, transfers that establishment in whole or in part, by sale, gift, lease or licence or in any othermanner whatsoever, the employer and the person to whom the establishment is so transferred shall jointlyand severally be liable to pay the contribution and other sums due from the employer under any provision Of this Act or the Scheme or 2[the 3[Pension] Scheme or the Insurance Scheme, as the case may be, inrespect of the period up to the date of such transfer:

Provided that the liability of the transferee shall be limited to the value of the assets obtained by himby such transfer].]

1. Ins. by Act 40 of 1973, s. 8 (w.e.f. 1-11-1973).

2. Subs. by Act 99 of 1976, s. 31, for "the Family Pension Scheme" (w.e.f. 7-9-1976).

3. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

1[18. Protection of action taken in good faith. No suit, prosecution or other legal proceeding shalllie against the Central Government, a State Government, the Presiding Officer of a Tribunal, anyauthority referred to in section 7A, an Inspector or any other person for anything which is in good faithdone or intended to be done in pursuance of this Act, the Scheme, the 2[Pension] Scheme or the InsuranceScheme.]

1. Subs. by Act 33 of 1988, s. 24, for section 18 (w.e.f. 1-8-1988).

2. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

1[18A. Authorities and inspector to be public servant.--The authorities referred to in section 7A and every inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.]]

1. Subs. by Act 7 of 2017, s. 159, for section 18A (w.e.f. 26-5-2017).

2[19. Delegation of powers The appropriate Government may direct that any power or authority oror jurisdiction exercisable by it under this Act 3[, the Scheme 4[, the 1Pension] Scheme or the InsuranceScheme]] shall, in relation to such matters and subject to such conditions, if any, as may be specified inthe direction, be exercisable also--

(a) where the appropriate Government is the Central Government, by such officer or authoritysubordinate to the Central Government or by the State Government or by such officer or authoritysubordinate to the State Government, as may be specified in the notification; and

(b) where the appropriate Government is a State Government, by such officer or authoritysubordinate to the State Government as may be specified in the notification.]

1. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995).

2. Subs. by Act 37 of 1953, s. 17, for section 19.

3. Subs. by Act 16 of 1971, s. 29, for "or any scheme".

4. Subs. by Act 99 of 1976, s. 37, for "or the family scheme".

1[20. Power of Central Government to give directions.-- The Central Government may, from timeto time, give such directions to the Central Board as it may think fit for the efficient administration of thisAct and when any such direction is given, the Central Board shall comply with such direction.]

1. Subs. by Act 33 of 1988, s. 25, for section 19A (w.e.f. 1-7-1997).

1[21. Power to make rules.-- (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--

1[

];

(b) the form and the manner in which, and the time within which, an appeal shall be filed before a Tribunal and the fees payable for filing such appeal;

(c) the manner of certifying the copy of the certificate, to be forwarded to the Recovery Officer under sub-section (2) of section 8C; and

(d) any other matter, which has to be, or may be, prescribed by rules under this Act.

(3) Every rule made under this Act 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 rule or both Houses agree that the rule should not be made, the rule 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 rule.]

1. Subs. by Act 33 of 1988, s. 25, for section 19A (w.e.f. 1-7-1997).

2. Clause (a) omitted by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017).

1[22. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions ofthis Act, as amended by the Employees Provident Funds and Miscellaneous Provisions (Amendment)Act, 1988 (33 of 1988), the Central Government may, by order published in the Official Gazette, makesuch provisions, not inconsistent with the provisions of this Act as appear to it to be necessary orexpedient for the removal of the difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the date onwhich the said amendment Act receives the assent of the President.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before eachHouse of Parliament.]]]

1. Subs. by Act 33 of 1988, s. 25, for section 19A (w.e.f. 1-7-1997).