employees pf scheme 1952

8/14/2019 Employees PF Scheme 1952

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Employees Provident Funds Scheme, 1952

[SRO 1509, dted 2!9!1952"

In exercise of the powers conferred by section 5 of the Employees Provident Funds Act,

195 !19 of 195", the #entr$l %overnment hereby fr$mes the followin& EmployeesProvident Funds 'cheme, 195, n$mely:

Chapter I

Preliminry

Short title nd ppliction#

1. (1) This Scheme may be called the Employees Provident !nds Scheme" 1#$%.

(%) 1&Save as other'ise provided in the Scheme" this Chapter and Chapters II and IIIshall come into orce at once and the remainin* provisions shall come into orce on s!ch

date or dates as the Central +overnment may by notiication in the ,icial +a-etteappoint and dierent dates may be appointed or dierent provisions.

%&()($) S!b/ect to provisions o sections 10 and 1 o the 2ct" this Scheme shall apply to

all actories &and other establishments to 'hich the 2ct applies or is applied !nder s!b3

section () o section 1 or section thereo:

4&Providedthat the provisions o this scheme shall not apply to:

(i) $&555

(ii) $&555

(iii) Tea actories in the State o 2ssam6

0&(b) Provisions o this Scheme shall

&(i) as respects every establishment 'hich is a actory en*a*ed in any ind!stry

mentioned herein" namely" cement" ci*arettes" electrical" mechanical or *eneralen*ineerin* prod!cts" iron and steel" paper and te7tiles (made 'holly or in part o

cotton or 'ool or /!te or sil8" 'hether nat!ral or artiicial)" be deemed to have" come

into orce 'ith eect rom %nd day o September" 1#$%6

9&(i$) as respects actories relatin* to the ind!stries added to Sched!le I o the 2ct" by

notiication o the +overnment o India in the inistry o ;abo!r"


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11&(iv) as respects plantations o tea (other than tea plantations in the State o 2ssam"

coee" r!bber" cardamom and pepper" covered by the notiication o the

+overnment o India in the inistry o ;abo!r" !ne" 1#0?" come into orce onthe ?th day o >!ne" 1#0?6

%1&(xiv) as respects any cane arm o'ned by a s!*ar actory covered by the notiication

o the +overnment o India in the inistry o ;abo!r and Employment"


3/100

+.S.=. 1%4" dated the %1st ,ctober" 1#0?" come into orce on the ?th day o

!ne" 1#01" come into orce on the 1st day o >!ly" 1#016

%0&(xx) as respects the establishments covered by the notiication o the +overnment o

India in the inistry o ;abo!r and Employment" !ly" 1#01" come into orce on

the 1st day o 2!*!st" 1#016

%&(xxii) as respects the actories relatin* to the stone3'are /ars and croc8ery ind!stries

covered by the notiication o the +overnment o India in the inistry o ;abo!r

and Employment"


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?&(xxv) as respects the actories relatin* to r!it and ve*etable preservation ind!stry

covered by the notiication o the +overnment o India" in the inistry o

;abo!r and Employment"


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44&(xxxviii) as respects bone cr!shin* ind!stry come into orce on the 1st day o

>an!ary" 1#046

4$&(xxxix) as respects china3clay mines come into orce on the ?th day o >!ne" 1#046

40&(xl) as respects pi8ers ind!stry come into orce on the ?th day o >!ne" 1#046

4&(xli) as respects the establishments in the Dnion territory o +oa" aman and i! in'hich territory the Employees Provident !nds 2ct" 1#$% (1# o 1#$%)" has

been enorced rom the 1st >!ly" 1#04 by the notiication o the +overnment o+oa" aman and i!" Ind!stries and ;abo!r epartment an!ary" 1#0$6

$1&(xlv) as respects non3erro!s metals and alloys in the orm o in*ots ind!stry speciiedin the notiication o the +overnment o India in the epartment o SocialSec!rity" !ne" 1#0$" come into orce on the 1st day o

>!ly" 1#0$6

$$&(xlix) as respects coir (e7cl!din* the spinnin* sector) ind!stry speciied in the

notiication o the +overnment o India in the epartment o Social Sec!rity"
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an!ary" 1#006

$#&(liii) as respects the tobacco ind!stry" that is to say" any ind!stry en*a*ed in the

man!act!re o ci*ars" -arda" sn!" Fivam and *!ra8! rom tobacco covered bythe notiication o the +overnment o India in the inistry o ;abo!r"

Employment and =ehabilitation (epartment o ;abo!r and Employment)"


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o ;abo!r and Employment)" !ne"1#0#6

1&(lxv) as respects diamond mines come into orce on the ?th day o >!ne" 1#0#6

%&(lxvi) as respects establishments 'hich are e7cl!sively or principally en*a*ed in*eneral ins!rance b!siness come into orce on the 1st day o >an!ary" 1#?6

&(lxvii) as respects establishments renderin* e7pert services come into orce on the 1st

day o ay" 1#164&(lxviii) as respects actories en*a*ed in the 'indin* o thread and yarn reelin* covered

by the notiication o the +overnment o India in the inistry o ;abo!r"

Employment and =ehabilitation (epartment o ;abo!r and Employment)"


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=ehabilitation (epartment o ;abo!r and Employment)"


9/100

covered by the notiication o the +overnment o India in the inistry o

;abo!r"


10/100

notiication o the +overnment o India in the inistry o ;abo!r


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(i) co!rier services"

(ii) aircrat or airlines other than the aircrats or airlines o'ned or controlled

by the Central or State +overnment" and

(iii) cleanin* and s'eepin* services" speciied in the notiication o

+overnment o India in the inistry o ;abo!r"


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Providedthat i a member proves that his 'ie has ceased" !nder the personal

la' *overnin* him or the c!stomary la' o the comm!nity to 'hich the

spo!ses belon*" to be entitled to maintenance she shall no lon*er be deemed tobe a part o the members amily or the p!rpose o this Scheme" !nless the

member s!bseF!ently intimates by e7press notice in 'ritin* to the

Commissioner that she shall contin!e to be so re*arded6 and(ii) 1$&in the case o a emale member" her h!sband" her children" 'hether married

or !nmarried" her dependant parents" her h!sbands dependant parents and herdeceased sons 'ido' and children :

Providedthat i a member by notice in 'ritin* to the Commissioner e7presses

her desire to e7cl!de her h!sband rom the amily" the h!sband and his

dependent parents shall no lon*er be deemed to be a part o the membersamily or the p!rpose o this Scheme" !nless the member s!bseF!ently cancels

in 'ritin* any s!ch notice.

Expl$n$tion: In either o the above t'o cases" i the child o a member 10&or"

as the case may be" the child o a deceased son o the member has been

adopted by another person and i" !nder the personal la' o the adopter"adoption is le*ally reco*nised" s!ch a child shall be considered as e7cl!ded

rom the amily o the member6

(h) @inancial yearB means the year commencin* on the irst day o 2pril6

(i) @+overnment sec!rityB shall have the meanin* assi*ned to it in the P!blic ebts

2ct" 1#44 (19 o 1#44)6

()) @InspectorB means a person appointed as s!ch !nder section 1 o the 2ct6

(*) @M!arterB means a period o three months commencin* on the irst day o>an!ary" the irst day o 2pril" the irst day o >!ly and the irst day o ,ctober o

each year61&(**) Lseasonal actory means a actory 'hich is e7cl!sively en*a*ed in the

man!act!re o tea" s!*ar" r!bber19&" t!rpentine" rosin" indi*o" lac" 1#&r!it andve*etable preservation ind!stry" %?&rice millin* ind!stry" dal millin* ind!stry"

%1&cashe'n!t ind!stry" %%&stemmin* or redryin* o tobacco lea ind!stry %&"

tiles ind!stry" hosiery ind!stry " oil millin* ind!stry" %4&licensed salt ind!stry"

%$&/!te balin* or pressin* ind!stry" %0&ire 'or8s and perc!ssion cap 'or8sind!stry" %&ice or ice cream ind!stry %9&or cotton *innin*" balin* and pressin*

ind!stry6

%#&(***) @seasonal establishmentB means a plantation o tea" coee" r!bber" cardamom or

pepper" ?&1&a coee c!rin* establishment" a ireclay mine or a *yps!m

mine6

(l) @tr!steeB means a member o a Goard o Tr!stees6 and

(m) all other 'ords and e7pressions shall have the meanin*s respectively assi*ned to

them in the 2ct.
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Chapter II

&2['ord o% trustees, e(ecutive committee nd re)ionl committees"

&Election o% certin mem*ers o% the E(ecutive +ommittee#

. (1) The Chairman o the Central Goard shall call a meetin* o the Goard or thep!rpose o election to the E7ec!tive Committee o the members representin* the

employer or" as the case may be" the employees reerred to in cla!ses ( d) and (e) o s!b3

section (%) o section $22 o the 2ct.

(%) In the meetin* reerred to in s!b3para*raph (1)" the Chairman o the Central Goard

may invite the members to propose the names o those members" 'ho represent theemployers or" as the case may be" the employees and every s!ch proposal shall be d!ly

seconded by another member o the Goard.

() I the n!mber o persons proposed and seconded or election !nder s!b3para*raph (%)

does not e7ceed the n!mber o vacancies to be illed !p rom amon*st the persons

representin* the employers" or" as the case may be" the employees" the persons 'hosenames have been so proposed and seconded in relation to the cate*ory o employers or

employees" shall be declared elected to the E7ec!tive Committee.

(4) I the n!mber o persons proposed and seconded or election !nder s!b3para*raph (%)

e7ceeds the n!mber o vacancies to be illed !p rom amon*st the persons representin*the employers or" as the case may be" the employees" each member o the Goard present

at the meetin* shall be *iven a ballot paper containin* the names o all the candidates so

proposed and seconded and he may record his votes thereon or as many candidates

belon*in* to the cate*ories o employers or employees" as there are vacancies to be illed!p in relation to each s!ch cate*ory" b!t not more than one vote shall be *iven in avo!r

o any one candidate. I any member votes or more candidates than the n!mber o

vacancies in relation to the cate*ories o employers or employees or *iven more than onevote in avo!r o any one candidate" all his votes shall be deemed to be invalid.

($) The persons *ettin* the hi*hest n!mber o votes shall be declared by the Chairman asd!ly elected to the E7ec!tive Committee at the same meetin* or as soon thereater as

possible:

Provided that 'here there is an eF!ality o votes bet'een any candidates" and the

addition o one vote 'ill entitle any o the candidates to be declared elected" s!chcandidate shall be selected by lot to be dra'n in the presence o the Chairman in s!ch

manner as he may determine.

(0) I any F!estion arises as to the validity o any election" it shall be reerred to the

Central +overnment" 'ho shall decide the same.

Re)ionl +ommittee#

4. (1) Dntil s!ch time as a State Goard is constit!ted or a State" the 4&Chairman o theCentral Goard may" $&by notiication in the ,icial +a-ette" set !p a =e*ional

Committee or the State" 'hich 'ill !nction !nder the control o the Central Goard. The

=e*ional Committee shall consist o the ollo'in* persons" namely:
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($) a Chairman 0&appointed by the 4&Chairman o the Central Goard6

(b) T'o persons 0&appointed by the 4&Chairman o the Central Goard on the

recommendation o the State +overnment6

(c) &t'o persons representin* employers in the 9&ind!stries or other establishments

to 'hich this Scheme applies in the State #&appointed by the Chairman o the

Central Goard in cons!ltation 'ith s!ch or*anisations o employers in the State asmay be reco*nised or the p!rpose by the Central +overnment6 4?&555

(d) &t'o persons representin* employees in the 9&ind!stries or other

establishments to 'hich this Scheme applies in the State #&appointed by the

Chairman o the Central Goard in cons!ltation 'ith s!ch or*anisations oemployees in the State as may be reco*nised or the p!rpose by the Central

+overnment6 41&and

(e) the non3oicial members o the Central Goard ordinarily resident in the State:

4%&Providedthat 'here the Chairman o the Central Goard considers it e7pedient so todo" he may appoint !p to 4%a[five"additional representatives o the employers or" as the

case may be" the employees.4&(%) 2 =e*ional Committee shall advise the Central Goard"

(i) on s!ch matters as the Central Goard may reer to it rom time to time6

(ii) *enerally" on all matters connected 'ith the administration o the Scheme in theState and" in partic!lar" on

($) pro*ress o recovery o provident !nd contrib!tions and other char*es"

(b) e7peditio!s disposal o prosec!tions"

(c) speedy settlement o claims"

(d) ann!al renderin* o acco!nts to members o the !nd" and

(e) speedy sanction o advances.

() 2s soon as a State Goard is constit!ted or any State" the =e*ional Committee

constit!ted or that State !nder this para*raph shall stand dissolved.

44340&erms o% o%%ice#

$. 4&(1) The term o oice o the Chairman" Jice3Chairman and every Tr!stee o theCentral Goard reerred to in cla!ses (b)" (c)" (d) and (e) o s!b3section (1) o section $2

o the 2ct shall be ive years commencin* on and rom the date on 'hich their

appointment is notiied in the ,icial +a-ette.

(%) The term o oice o the Chairman and every ember o the E7ec!tive Committee

reerred to in cla!ses (b)" (c)" (d) and (e) o s!b3section (%) o section $22 shall be t'oyears and si7 months commencin* on and rom the date on 'hich their appointment is

notiied in the ,icial +a-ette.

(%2) The term o oice o the Chairman and every ember o a =e*ional Committee

reerred to in cla!ses (b)" (c) and (d) o s!b3para*raph (1) o para*raph 4 shall be three

years commencin* on and rom the date on 'hich their appointment is notiied in the,icial +a-ette.
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(%G)


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$&(iv) i he as an employer in relation to an e7empted establishment or an establishment

to 'hich the Scheme applies has dea!lted in the payment o any d!es to the Central

Goard or the !nd recoverable rom him !nder the 2ct or the Scheme" as the casemay be.

$9&(%) I any F!estion arises 'hether any person is disF!aliied !nder s!b3para*raph (1)"

it shall be reerred to the Central +overnment and the decision o the Central +overnmenton any s!ch F!estion shall be inal.

$#&Removl %rom trusteeship or mem*ership o% Re)ionl +ommittee#

#. 0?&The Central +overnment may remove rom oice any tr!stee o the Central Goard

or the Chairman" Central Goard" may remove rom oice any member o a =e*ional

Committee

(i) i" in the opinion o the Central +overnment or the Chairman" Central Goard" s!ch

tr!stee or member has ceased to represent the interest 'hich he p!rports to representon the Goard or Committee" as the case may be6 or

(ii) i he as an employer in relation to an e7empted establishment or an establishment to

'hich the Scheme applies has dea!lted in the payment o any d!es to the Goard or

the !nd recoverable rom him !nder the 2ct or the Scheme" as the case may be:

Provided that no s!ch tr!stee or member shall be removed rom oice !nless a

reasonable opport!nity is *iven to s!ch tr!stee or member and the body 'hom herepresents" o ma8in* any representation a*ainst the proposed action.

.*sence %rom /ndi#

1?. (1) Geore a non3oicial tr!stee or a member o a =e*ional Committee leaves India:

($) he shall intimate to the Chairman o the 01&Central Goard or o the Committee" as

the case may be" o the dates o his depart!re rom and e7pected ret!rn to India" or

(b) i he intends to absent himsel or a period lon*er than si7 months" he shall tenderhis resi*nation.

(%) I any tr!stee or a member o a =e*ional Committee leaves India or a period o si7months or more 'itho!t intimation to the Chairman o the 01&Central Goard or o the

=e*ional Committee" as the case may be" he shall be deemed to have resi*ned rom the

01&Central Goard or the Committee.

eetin)s#11. (1) 0%&The Central Goard o Tr!stees 0&or the E7ec!tive Committee or =e*ional

Committee shall" s!b/ect to the provisions o para*raph 1%" meet at s!ch place and time

as may be appointed by the Chairman:

04&Providedthat the Central Goard or the =e*ional Committee shall meet at least t'icein each inancial year and the E7ec!tive Committee shall meet at least o!r times in each

inancial year.
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(%) The Chairman may" 'henever he thin8s it" and shall 'ithin iteen days o the receipt

o a reF!isition in 'ritin* rom not less than one3third o the members in the case o the

0$&Central Goard 0$a&or the E7ec!tive Committee and not less than three memberse7cl!din* the Chairman in the case o 00&a =e*ional Committee" call a meetin* thereo.

++$[Monthly member's pension

1 A member sh$ll be entitled to-.

!$" super$nnu$tion pension if he h$s rendered eli&ible service of 1/ ye$rs or more $nd

retires on $tt$inin& the $&e of 50 ye$rs

!b" e$rly pension, if he h$s rendered eli&ible service of 1/ ye$rs or more $nd retires or

otherwise ce$ses to be in the employment before $tt$inin& the $&e of 50 ye$rs

!" In the c$se of $ new entr$nt, the $mount of monthly super$nnu$tion pension or e$rly

pension, $s the c$se m$y be, sh$ll be computed in $ccord$nce with the followin& f$ctors,

n$mely-2

3onthly member pension

4

Pension s$l$ry x pension$ble service

/

!(" In the c$se of $n existin& member in respect of whom the d$te of commencement of

pension is $fter the 1+th 6ovember, //5.

!i" super$nnu$tion or e$rly pension sh$ll be e7u$l to the $&&re&$te of-8

!$" pension $s determined under sub2p$r$&r$ph !" for the period of pension$ble service

rendered from the 1+th 6ovember, 1995 or s +(5 per month whichever is more

!b" p$st service pension sh$ll be $s &iven below-.

:he p$st service pension p$y$ble on completion of 50 ye$rs of $&e on the 1+th6ovember, 1995-

'

6o

;e$rs of p$st service '$l$ry upto

s ,5// permonth

'$l$ry more th$n

s ,5// permonth

!1" !" !("

!i"


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of pension is between the 1+th 6ovember, ///, $nd the 1+th 6ovember, //5 .

!i" super$nnu$tion or e$rly pension sh$ll be e7u$l to the $&&re&$te of-.

!$" pension $s determined under sub2p$r$&r$ph !" for the period of service rendered

from the 1+th 6ovember, 1995 or s ?(0 per month whichever is more

!b" p$st service pension $s provided in sub2p$r$&r$ph !("

!ii" :he $&&re&$te of !$" $nd !b" c$lcul$ted $s $bove sh$ll be sub)ect to $ minimum of s

+// per month, provided the eli&ible service is ? ye$rs Provided further, if it is less

m$n ? ye$rs the pension sh$ll be proportion$tely less sub)ect to the minimum of s (5per month

!5" In the c$se of $n existin& member $nd in respect of whom the d$te of commencement

of pension is before the 1+th 6ovember, ///,.

!i" super$nnu$tion or e$rly pension sh$ll be e7u$l to the $&&re&$te of-.

!$" pension $s determined under sub2p$r$&r$ph !" for the period of service

rendered from the 1+th 6ovember, 1995 or s ((5 per month whichever is

more

!b" p$st service pension $s provided in sub2p$r$&r$ph !("

!ii" :he $&&re&$te of !$" $nd !b" c$lcul$ted $s $bove sh$ll be sub)ect to $ minimum of

s 5// per month, provided the eli&ible service is ? ye$rs Provided further, if

it isles th$n ? ye$rs the pension sh$ll be proportion$tely lesser but sub)ect tothe minimum of s +5 per month

!+" Except $s otherwise expressly provided herein$fter, the monthly member@s pensionunder sub2p$r$&r$phs !" to !5" mentioned herein$bove, $s the c$se m$y be, sh$ll be

p$y$ble from $ d$te immedi$tely followin& the d$te of completion of 50 ye$rs of $&e

notwithst$ndin& th$t the member h$s retired or ce$sed to be in the employment beforethe d$te

!" A member, if he so desires, m$y be $llowed to dr$w $n e$rly pension from $ d$tee$rlier th$n 50 ye$rs of $&e but not e$rlier th$n 5/ ye$rs of $&e In such c$ses, the

$mount of pension sh$ll be reduced $t the r$te of three per cent of every ye$r the $&e

f$lls short of 50 ye$rs]

0&+hirmn to preside t meetin)s#

1. The Chairman o the Central Goard or the E7ec!tive Committee or a =e*ionalCommittee shall preside at every meetin* o the Central Goard or the E7ec!tive

Committee or the =e*ional Committee" as the case may be" at 'hich he is present. I the

Chairman o the Central Goard is absent at any time" the Jice3Chairman thereo shall

preside over the meetin* o the Central Goard and e7ercise all the po'ers o theChairman at the meetin*. I the Jice3Chairman o the Central Goard or the Chairman o

the E7ec!tive Committee or o a =e*ional Committee is absent at any time" the tr!stees

or members present shall elect one o the tr!stees or" as the case may be" the members topreside over the meetin* and the tr!stee or member so elected" shall e7ercise all the

po'ers o the Chairman at the meetin*.
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09&uorum#

14. (1)


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() 2 tr!stee or a member appointin* a s!bstit!te or attendin* any meetin* o the

&Central Goard or the =e*ional Committee" as the case may be" shall" not'ithstandin*

anythin* contained in this para*raph" contin!e to be liable or the misappropriation ormisapplication o the !nd by the s!bstit!te and shall also be liable or any act o

miseasance or non3easance committed in relation to the !nd by the s!bstit!te

appointed by him .

$isposl o% *usiness

1$. Every F!estion considered at a meetin* o $&the Central Goard" 0&or the

E7ec!tive Committee or a =e*ional Committee shall be decided by a ma/ority o the

votes o the tr!stees or &members o the E7ec!tive Committee or a =e*ionalCommittee present and votin*. In the event o an eF!ality o votes the Chairman shall

e7ercise a castin* vote:

Providedthat the Chairman may" i he thin8s it" direct that any F!estion shall be decided

by the circ!lation o necessary papers to tr!stees or &members o the E7ec!tive

Committee or a =e*ional Committee present in India and by sec!rin* their opinions in'ritin*. 2ny s!ch F!estion shall be decided in accordance 'ith the opinion o the

ma/ority o tr!stees or members received 'ithin the time limit allo'ed and i the opinions

are eF!ally divided" the opinion o the Chairman shall prevail:

Provided %urther that any tr!stee or member o 9&the E7ec!tive Committee or=e*ional Committee may reF!est that the F!estion reerred to tr!stees or" &members o

the E7ec!tive Committee or a =e*ional Committee" as the case may be" or 'ritten

opinion be considered at a meetin* o the #&Central Goard" 9?&or the E7ec!tive

Committee or a =e*ional Committee and there!pon the Chairman may" and i thereF!est is made by not less than three tr!stees or &members o the E7ec!tive

Committee or a =e*ional Committee shall direct that it be so considered.

inutes o% meetin)s#

10. (1) The min!tes o a meetin* o 9139%&the Central Goard 9&or the E7ec!tive

Committee or a =e*ional Committee sho'in* inter $li$ the names o the tr!stees or

members o 94&E7ec!tive Committee or a =e*ional Committee present thereat shall be

circ!lated to all tr!stees or members o 94&E7ec!tive Committee or a =e*ionalCommittee present in India not later than one month rom the date o the meetin*. The

min!tes shall thereater be recorded in min!te boo8 as a permanent record:

Providedthat i another meetin* is held 'ithin a period o one month and ten days" the

min!tes shall be circ!lated so as to reach the tr!stees or members at least ten days beore

s!ch meetin*.

(%) The records o the min!tes o each meetin* shall be si*ned by the Chairman aterconirmation 'ith s!ch modiications" i any" as may be considered necessary at the ne7t

meetin*.
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45[.cts o% 4[666" Re)ionl +ommittee not invlid *y reson merely o% ny

vcncy in, or de%ect in the constitution, etc#

1.


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Provided that the daily allo'ance shall be calc!lated or attendin* the

meetin* or the entire absence rom the normal place o residence o the

non3oicial tr!stee or member on calendar day basis" ie, midni*ht tomidni*ht as !nder :

or absence not e7ceedin* 0 ho!rs 6il

or absence e7ceedin* 0 ho!rs b!t not e7ceedin* 1%ho!rs

? per cent

or absence e7ceedin* 1% ho!rs 1?? per cent

#1&() Khere s!ch tr!stee or member bein* a member o a State ;e*islat!re attends a

meetin* o the #%&Central Goard or #&the E7ec!tive Committee or the =e*ional

Committee" as the case may be" he shall be entitled

(i) 'hen the State ;e*islat!re is not in session" to s!ch travellin* and daily

allo'ances as are admissible to +rade I ,icers o the State +overnment6 and

(ii) 'hen the State ;e*islat!re is in session" to s!ch travellin* and daily allo'ances as

are admissible to the members o that ;e*islat!re or attendin* meetin*s o the

;e*islat!re.(4) Khere s!ch tr!stee or member bein* a member o either Ao!se o Parliament attends

a meetin* o the #4&Central Goard or #$&the E7ec!tive Committee or the =e*ional

Committee" as the case may be" he shall be entitled to s!ch travellin* and daily

allo'ances as may be admissible to him !nder the r!les laid do'n by the Central+overnment on the s!b/ect rom time to time:

#0&Providedthat 'hen a inister is appointed as Chairman or member o the Goard or

o#&the E7ec!tive Committee or o the =e*ional Committee" and attends a meetin* o

s!ch Central Goard or #9&the E7ec!tive Committee or =e*ional Committee" as the casemay be" his travellin* and daily allo'ance shall be *overned by the r!les applicable to

him or /o!rneys perormed on oicial d!ties and shall be paid by the a!thority payin*

his salary.

($) ##&555

Expl$n$tion I:


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Chapter III

.ppointment nd Po7ers o% +ommissioner nd other st%% o% 'ord o% rustees

%&+entrl Provident Fund +ommissioner nd Finncil .dviser nd +hie% .ccounts

O%%icer#1#. The Central Provident !nd Commissioner and the inancial 2dviser and Chie

2cco!nts ,icer shall not !nderta8e any 'or8 !nconnected 'ith their oice 'itho!t the

previo!s sanction o the Central +overnment.

%?. &555

8[Openin) o% re)ionl nd other o%%ices#

%1. The Central Goard may" $&555 open s!ch re*ional and local oices as it mayconsider desirable or the proper implementation o the Scheme. It may also deine the

!nctions and d!ties o the re*ional and local oices.

5[Secretry o% the +entrl 'ord or Re)ionl +ommittee#

%%. 0&(1) The Central Provident !nd Commissioner shall be the Secretary o the

Central Goard and o the E7ec!tive Committee. The =e*ional Provident !nd

Commissioner3in3char*e o the re*ion shall be the Secretary o the =e*ional Committee

o the StateDnion Territory 'ithin his /!risdiction.

(%) The Secretary to the Central Goard or &the E7ec!tive Committee or a =e*ionalCommittee shall" in cons!ltation 'ith the Chairman" convene meetin*s o the Central

Goard or &the E7ec!tive Committee or the =e*ional Committee" as the case may be"

8eep a record o its min!tes and shall ta8e the necessary steps or carryin* o!t the

decisions o the Central Goard or &the E7ec!tive Committee or the =e*ionalCommittee" as the case may be.

9&.ppointment o% o%%icers nd employees o% the +entrl 'ord#

%%2. The po'er o appointment vested in the Central Goard !nder s!b3section () o

section $ o the 2ct shall be e7ercised by the Goard in relation to posts carryin* thema7im!m scale o pay o =s. 9a&14"??319"??.

9[/n%ormtion o% ppointments to the +entrl 'ord#%. =eerences relatin* to all appointments o oicers o the 1?&level o the =e*ional

Provident !nd Commissioners and above made by the Chairman" Central Goard shallbe placed beore the ne7t meetin* o the Central Goard or inormation.

11&.dministrtive nd %inncil po7ers o% +ommissioner#

%4. (1) 2 Commissioner may" 'itho!t reerence to the 1%&Central Goard sanctione7pendit!re on contin*encies" s!pplies and services and p!rchase o articles reF!ired or
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administerin* the !nd s!b/ect to inancial provision in the b!d*et and s!b/ect to the

limits !p to 'hich a Commissioner may be a!thorised to sanction e7pendit!re on any

sin*le item rom time to time by the Central Goard1&555.

(%) 2 Commissioner may also e7ercise s!ch administrative and inancial po'ers other

than those speciied in s!b3para*raph (1) above" as may be dele*ated to him rom time to

time by the Central Goard 1&555.() 2 Commissioner may dele*ate rom time to time the administrative and inancialpo'ers dele*ated to him by the Central Goard to any oicer !nder his control or

s!perintendence to the e7tent considered s!itable by him or the administration o the

Scheme. 2 statement o s!ch dele*ation shall be placed beore the ne7t meetin* o theCentral Goard or inormation.

14&$ele)tion o% po7er *y the +entrl 'ord#

%42. 1$&(1) The Central Goard 10&555 may" by a resol!tion" empo'er its Chairman tosanction e7pendit!re on any item" 'hether in the nat!re o capital e7pendit!re or reven!e

e7pendit!re" as it may deem necessary or the eicient administration o the !nd"s!b/ect to inancial provisions in the G!d*et" 'here s!ch e7pendit!re is beyond the limits

!p to" 'hich the Commissioner is a!thorised to sanction e7pendit!re on any sin*le item.

(%) The Central Goard may also" by a resol!tion" empo'er its Chairman to appoint s!choicers and employees other than those mentioned in s!b3sections (1) and (%) o section

$ o the 2ct" as he may consider necessary or the eicient administration o the

Scheme.

() 2ll sanctions o e7pendit!re made by the Chairman in p!rs!ance o s!b3para*raph (1)

shall be reported to the Central Goard as soon as possible ater the sanction o thee7pendit!re.

Po7ers o% the +entrl overnment until the +entrl 'ord is constituted#

%$. Dntil the Central Goard is constit!ted" the Central +overnment shall administer the

!nd and may e7ercise any o the po'ers and dischar*e any o the !nctions o theGoard:

Provided that on the constit!tion o the Central Goard" the Central +overnment shall

transer amo!nts standin* to the credit o the !nd to the Central Goard.

Chapter IJ

1:[em*ership o% the Fund"

19&+lsses o% employees entitled nd re-uired to ;oin the %und#

%0. (1) ($) Every employee employed in or in connection 'ith the 'or8 o a actory or

other establishment to 'hich this Scheme applies" other than an e7cl!ded employee" shall

be entitled and reF!ired to become a member o the !nd rom the day this para*raphcomes into orce in s!ch actory or other establishment.
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(b) Every employee employed in or in connection 'ith the 'or8 o a actory or other

establishment to 'hich this scheme applies" other than an e7cl!ded employee" shall also

be entitled and reF!ired to become a member o the !nd rom the day this para*raphcomes into orce in s!ch actory or other establishment i on the date o s!ch comin* into

orce" s!ch employee is a s!bscriber to a provident !nd maintained in respect o the

actory or other establishment or in respect o any other actory or establishment (to'hich the 2ct applies) !nder the same employer:

Providedthat 'here the Scheme applies to a actory or other establishment on the e7piryor cancellation o an order o e7emption !nder section 1 o the 2ct" every employee

'ho b!t or the e7emption 'o!ld have become and contin!ed as a member o the !nd"

shall become a member o the !nd orth'ith.

(%) 2ter this para*raph comes into orce in a actory or other establishment" everyemployee employed in or in connection 'ith the 'or8 or that actory or establishment"

other than an e7cl!ded employee" 'ho has not become a member already shall also be

entitled and reF!ired to become a member o the !nd rom the date o /oinin* the actory

or establishment.

() 2n e7cl!ded employee employed in or in connection 'ith the 'or8 o a actory orother establishment to 'hich this Scheme applies shall" on ceasin* to be s!ch an

employee" be entitled and reF!ired to become a member o the !nd rom the date he

ceased to be s!ch employee.

(4) ,n re3election o an employee or a class o employees e7empted !nder para*raph %

or para*raph %2 to /oin the !nd or on the e7piry or cancellation o an order !nder thatpara*raph" every employee shall orth'ith become a member thereo.

($) Every employee 'ho is a member o a private provident !nd maintained in respect oan e7empted actory or other establishment and 'ho b!t or e7emption 'o!ld have

become and contin!ed as a member o the !nd shall" on /oinin* a actory or other

establishment to 'hich this Scheme applies" become a member o the !nd orth'ith.(0)


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the date the payment is a!thorised to him by the a!thority speciied in this behal by

Commissioner irrespective o the date o claim.

(%) Every member employed as an employee other than an e7cl!ded employee" in a

actory or other establishment to 'hich this Scheme applies shall contrib!te to the !nd"and the contrib!tion shall be payable to the !nd in respect o him by the employer. S!ch

contrib!tion shall be in accordance 'ith the rate speciied in para*raph %#:Providedthat s!b/ect to the provisions contained in s!b3para*raph (0) o para*raph %0

and in s!b3para*raph (1) o para*raph %" or s!b3para*raph (1) o para*raph %2" 'here

the monthly pay o s!ch a member e7ceeds %?&si7 tho!sand and ive h!ndred r!pees thecontrib!tion payable by him" and in respect o him by the employer" shall be limited to

the amo!nts payable on a monthly pay o %?&si7 tho!sand and ive h!ndred r!pees

incl!din* %1&dearness allo'ance" retainin* allo'ance (i any) and cash val!e o oodconcession.

%%&Resolution o% dou*ts#

%0G. I any F!estion arises 'hether an employee is entitled or reF!ired to become orcontin!e as a member" or as re*ards the date rom 'hich he is so entitled or reF!ired tobecome a member" the decision" thereon o the =e*ional Commissioner %&555 shall be

inal:

Providedthat no decision shall be *iven !nless both the employer and the employee have

been heard.

%4&E(emption o% n employee#

%. (1) 2 Commissioner may by order and s!b/ect to s!ch conditions as may be

speciied in the order e7empt rom the operation o all or any o the provisions o this

Scheme an employee to 'hom the Scheme applies on receipt o application in orm Irom s!ch an employee:

Providedthat s!ch an employee is entitled to beneits in the nat!re o Provident !nd"*rat!ity or old a*e pension accordin* to the r!les o the actory or other establishment

and s!ch beneits separately or /ointly are on the 'hole not less avo!rable than the

beneits provided !nder the 2ct and the Scheme.

(%) Khere an employee is e7empted as aoresaid" the employer shall in respect o s!ch

employee maintain s!ch acco!nt" s!bmit s!ch ret!rns" provide s!ch acilities orinspection" pay s!ch inspection char*es and invest provident !nd collections in s!ch

manner as the Central +overnment may direct.

() 2n employee e7empted !nder s!b3para*raph (1) may by an application to theCommissioner ma8e a declaration that he shall become a member o the !nd.

(4)


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%$&E(emption o% clss o% employees#

%2. (1)%0&The appropriate +overnment may by order and s!b/ect to s!ch conditions

as may be speciied in the order e7empt rom the operation o all or any o the provisionso this Scheme any class o employees to 'hom the Scheme applies:

Providedthat s!ch class o employees is entitled to beneits in the nat!re o provident

!nd" *rat!ity or old a*e pension accordin* to the r!les o the %&actory or otherestablishment and s!ch beneits separately or /ointly or on the 'hole not less avo!rablethan the beneit provided !nder the 2ct and this Scheme.

(%) Khere any class o employees is e7empted as aoresaid" the employer shall in respect

o s!ch class o employees maintain s!ch acco!nt" s!bmit s!ch ret!rns" provide s!chacilities or inspection" pay s!ch inspection char*es and invest provident !nd collections

in s!ch manner as the Central +overnment may direct.

() 2 class o employees e7empted !nder s!b3para*raph (1) or the ma/ority o employees

constit!tin* s!ch class may by an application to the Commissioner ma8e a declarationthat the class desires to /oin the !nd and there!pon s!ch class o employees shall

become members o the !nd.

(4)


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(%) 2ll acc!m!lations standin* to the credit o the s!bscribers" ho'soever invested" shall

be transerred to the !nd by the a!thority aoresaid in cash :

$&Provided that 'here the 'hole or any part o s!ch acc!m!lations consists o

investments in +overnment sec!rities" 0&or in sec!rities *!aranteed by appropriate+overnment as re*ards repayment o principal and payment o interest or in both" the

a!thority ma8in* the transer to the !nd shall transer those sec!rities at the price or'hich they 'ere act!ally p!rchased or transer a s!m eF!ivalent to s!ch price. In case"

ho'ever" the 'hole or any part o s!ch acc!m!lations is invested in


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Chapter J

+ontri*utions

4$&+ontri*ution#

%#. (1) The contrib!tions payable by the employer !nder the Scheme shall be at the

rate o 40&ten per cent o the 4&basic 'a*es" dearness allo'ance (incl!din* the cashval!e o any ood concession) and retainin* allo'ance (i any) payable to each employee

to 'hom the Scheme applies:

49&Providedthat the above rate o contrib!tion shall be 4#&t'elve per cent in respect oany establishment or class o establishments 'hich the Central +overnment may speciy

in the ,icial +a-ette rom time to time !nder the irst proviso to s!b3section (1) o

section 0 o the 2ct.

(%) The contrib!tion payable by the employee !nder the Scheme shall be eF!al to the

contrib!tion payable by the employer in respect o s!ch employee:

$?&Provided that in respect o any employee to 'hom the Scheme applies" the

contrib!tion payable by him may" i he so desires" be an amo!nt e7ceedin* $?a&ten percent or 4#&t'elve per cent" as the case may be" o his basic 'a*es" dearness allo'ance

and retainin* allo'ance (i any) s!b/ect to the condition that the employer shall not be

!nder an obli*ation to pay any contrib!tion over and above his contrib!tion payable!nder the 2ct.

() The contrib!tions shall be calc!lated on the basis o $1&basic 'a*es" dearness

allo'ance (incl!din* the cash val!e o any ood concession) and retainin* allo'ance (i

any) act!ally dra'n d!rin* the 'hole month 'hether paid on daily" 'ee8ly" ortni*htly

or monthly basis.

$%&(4) Each contrib!tion shall be calc!lated to $&the nearest r!pee" $? paise or more tobe co!nted as the ne7t hi*her r!pee and raction o a r!pee less than $? paise to be

i*nored.

$4&Pyment o% contri*utions#

?. (1) The employer shall" in the irst instance" pay both the contrib!tion payable byhimsel (in this Scheme reerred to as the employers contrib!tion) and also" on behal o

the member employed by him directly or by or thro!*h a contractor" the contrib!tion

payable by s!ch member (in this Scheme reerred to as the members contrib!tion).

(%) In respect o employees employed by or thro!*h a contractor" the contractor shall

recover the contrib!tion payable by s!ch employee (in this Scheme reerred to as themembers contrib!tion) and shall pay to the principal employer the amo!nt o members

contrib!tion so ded!cted to*ether 'ith an eF!al amo!nt o contrib!tion (in this Schemereerred to as the employers contrib!tion) and also administrative char*es$$&555.

() It shall be the responsibility o the principal employer to pay both the contrib!tion

payable by himsel in respect o the employees directly employed by him and also inrespect o the employees employed by or thro!*h a contractor and also administrative

char*es $0&555.
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$&Expl$n$tion : or the p!rposes o this para*raph the e7pression @administrative

char*esB means s!ch percenta*e o the pay (basic 'a*es" dearness allo'ance" retainin*

allo'ance" i any" and cash val!e o ood concessions admissible thereon) or the timebein* payable to the employees other than an e7cl!ded employee" as the Central

+overnment may" in cons!ltation 'ith the Central Goard and havin* re*ard to the

reso!rces o the !nd or meetin* its normal administrative e7penses" i7.

Employers shre not to *e deducted %rom the mem*ers#

1.


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Period of def$ult $te of d$m$&es ! of $rre$rs per

$nnum"f

($) ;ess than t'o months 1

(b) T'o months and above b!t less than o!rmonths

(c) o!r months and above b!t less than si7months

(d) Si7 months and above (

(%) The dama*es shall be calc!lated to the nearest r!pee" $? paise or more to be co!nted

as the nearest hi*her r!pee and raction o a r!pee less than $? paise to be i*nored.

erms nd conditions %or reduction or 7iver o% dm)es#

%G. The Central Goard may red!ce or 'aive the dama*es levied !nder section 14G othe 2ct in relation to an establishment speciied in the second proviso to section 14G"

s!b/ect to the ollo'in* terms and conditions" namely:

($) in case o a chan*e o mana*ement incl!din* transer o the !nderta8in* to 'or8ers

co3operative and in case o mer*er or amal*amation o the sic8 ind!strial company

'ith any other ind!strial company" complete 'aiver o dama*es may be allo'ed6

(b) in cases 'here the Goard or Ind!strial and inancial =econstr!ction" or reasons tobe recorded in its schemes" in this behal recommends" 'aiver o dama*es !p to 1??

per cent may be allo'ed6

(c) in other cases" dependin* on merits" red!ction o dama*es !p to $? per cent may be

allo'ed.

Chapter JI

$eclrtion, contri*ution crds nd returns

$eclrtion *y persons lredy employed t the time o% institution o% the Fund#

. Every person 'ho is reF!ired or entitled to become a member o the !nd shall be

as8ed orth'ith by his employer to !rnish and shall" on s!ch demand" !rnish to him" or

comm!nication to the Commissioner" partic!lars concernin* himsel and his nomineereF!ired or the declaration orm in orm %. S!ch employer shall enter the partic!lars in

the declaration orm and obtain the si*nat!re or th!mb impression o the person

concerned.

$eclrtion *y persons t
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eclaration orm. S!ch employer shall enter the partic!lars in the eclaration orm and

obtain the si*nat!re or th!mb impression o the person concerned:

0&Providedthat in the case o any s!ch employee 'ho has become a member o the

amily Pension !nd !nder the Employees amily Pension Scheme" 1#1" the aoresaideclaration orm shall also contain s!ch partic!lars as are necessary to comply 'ith the

reF!irements o that Scheme.

Preprtion o% contri*ution crds#

$. The employer shall prepare a contrib!tion card 04&in orm 0$&or orm 2 asmay be appropriate" in respect o every employee in his employment at the

commencement o the Scheme or 'ho is ta8en into employment ater that date and 'ho

is reF!ired or entitled to become or is a member o the !nd incl!din* those 'ho prod!cean 2cco!nt

orms shall also contain s!ch partic!lars as are necessary to comply 'ith thereF!irements o that Scheme.

$uties o% employers#

0. (1) Every employer shall send to the Commissioner" 'ithin iteen days o the

commencement o this Scheme" a consolidated ret!rn in s!ch orm as the Commissioner

may speciy" 0&555 o the employees reF!ired or entitled to become members o the!nd sho'in* the 09&basic 'a*e" retainin* allo'ance (i any) and dearness allo'ance

incl!din* the cash val!e o any ood concession paid to each o s!ch employees:

0#&Providedthat i there is no employee 'ho is reF!ired or entitled to become a member

o the !nd" the employer shall send a L


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time to time" direct" and it shall be the d!ty o every employer to assist the $&Central

Goard in ma8in* s!ch payments rom the !nd to his employees as are sanctioned by or

!nder the a!thority o the $&Central Goard.

4&(0)

administrative char*e o s!ch percenta*e 9%&o the pay (basic 'a*es" dearness allo'ance"retainin* allo'ance" i any" and cash val!e o ood concessions admissible thereon) or
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35/100

#?&Supply o% pss *oo


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+ustody o% contri*ution crds#

44. The employer shall retain in his c!stody the contrib!tion cards in respect o each

member employed by him and shall ta8e every preca!tion a*ainst loss or dama*e o the

contrib!tion cards.

/nspection o% crds *y mem*ers#

4$. 2ny member ma8in* a reF!est in this behal to the employer shall be permitted to

inspect his cards himsel or to have the same inspected by any person d!ly a!thorised by

him in 'ritin* to do so" 'ithin % ho!rs o ma8in* s!ch reF!est provided that no s!chreF!est shall be entertained more than once in every t'o calendar months.

Production o% crds nd records %or inspection *y the +ommissioner or /nspector#

40. Every employer shall" 'henever the Commissioner or any other oicer a!thorised

by him in this behal or an Inspector so reF!ests" either in person or by notice in 'ritin*"

prod!ce beore the Commissioner" ,icer" or Inspector" as the case may be" the recordso any member employed by him and any card then in his possession" and i so reF!ired"

by the said Commissioner" ,icer or Inspector shall deliver s!ch record to the said Com3missioner" ,icer or Inspector" 'ho may" i he thin8s it" retain the record provided that

he shall *rant a receipt or every record retained by him.

Supply o% crds nd Forms to employers#

4. The Commissioner shall s!pply to employers" ree o char*e on demandcontrib!tion cards" #&pass boo8s" declaration orms and other orms reerred to in this

Scheme:

Providedthat i any employer desires to obtain any cards" #&pass boo8s" or orms ine7cess o the n!mber 'hich the Commissioner considers to be the reF!irements o the

employer" the Commissioner may" i he thin8s it" s!pply s!ch e7tra cards" #&passboo8s" or orms and ma8e s!ch char*e thereor as he considers reasonable.

+urrent .ccount#

49. The Commissioner shall deposit the Gan8 drats or cheF!es received rom theemployers in the =eserve Gan8 or the State Gan8 o India in the C!rrent 2cco!nt o the

!nd.

Chapter JII

.dministrtion o% the %und, ccounts nd udit

.dministrtion .ccounts#

4#. #9&555 2 separate acco!nt shall be 8ept called the @Central 2dministration

2cco!ntB or recordin* all administrative e7penses o the !nd incl!din* s!chadministrative char*es as the !nd may be a!thorised to levy.

##&555
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Provident Fund .ccount#

$?. The a**re*ate amo!nt received as the employers and the employees contrib!tionsto the !nd shall be credited to an acco!nt to be called the @Provident !nd 2cco!ntB.

/nterest Suspense .ccount#

$1. 2ll interest" rent" and other income realised" and net proits or losses" i any" romthe sale or investments not incl!din* therein the transactions o the 2dministration

2cco!nt" shall be credited or debited" as the case may be" to an acco!nt called the

@Interest S!spense 2cco!ntB. Gro8era*e and commission on the p!rchase and sale o

sec!rities and other investments shall be incl!ded in the p!rchase or sale price" as thecase may be" and not separately char*ed to the @Interest S!spense 2cco!ntB.

/nvestment o% moneys *elon)in) to Employees Provident Fund#

$%. (1) 2ll moneys belon*in* to the !nd shall be deposited in the =eserve Gan8 orthe State Gan8 o India or in s!ch other Sched!led Gan8s as may be approved by the

Central +overnment rom time to time or shall be invested" s!b/ect to s!ch directions as

the Central +overnment may rom time to time *ive" in the sec!rities mentioned or

reerred to in cla!ses ($) to (d) o section %? o the Indian Tr!sts 2ct" 199% (% o 199%)"provided that s!ch sec!rities are payable both in respect o capital and in respect o

interest in India.

(%) 2ll e7penses inc!rred in respect o" and loss" i any" arisin* rom" any investment

shall be char*ed to the !nd.

() 1&555

$isposl o% the Fund#

$. %&(1) S!b/ect to the provisions o the 2ct and o this Scheme" the !nd" not

incl!din* therein the 2dministration 2cco!nt" shall not" e7cept 'ith the previo!s

sanction o the Central +overnment" be e7pended or any p!rpose other than the payment

o the s!ms standin* to the credit o individ!al members o the !nd or to their nomineesor heirs or le*al representatives in accordance 'ith the provisions o this Scheme.

(%) The !nd shall be operated !pon by s!ch oicers as may be a!thorised in this behal

by the &Central Goard.

4&E(penses o% .dministrtion#

$4. (1) 2ll e7penses relatin* to the administration o the !nd incl!din* thoseinc!rred on =e*ional Committee shall be met rom the !nd.

(%) 2ll e7penses o administration o the !nd" incl!din* the ees and allo'ances" o thetr!stees o the Central Goard and salaries" leave and /oinin* time allo'ances" travellin*

and compensatory allo'ances" *rat!ities and compassionate allo'ances" pensions"

contrib!tions to provident !nd and other beneit !nd instit!ted or the oicers and


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employees o the Central Goard" the cost o a!dit o the acco!nts" le*al e7penses and cost

o all stationery and orms inc!rred in respect o the Central Goard" cost and all e7penses

inc!rred in connection 'ith the constr!ction o oice b!ildin*s and sta F!arters shall bemet rom the 2dministration 2cco!nt o the !nd.

() The e7penses inc!rred by the Central +overnment in connection 'ith the

establishment o the !nd shall be treated as a loan and s!ch loan shall be repaid rom the2dministration 2cco!nt.

$&Form nd mnner o% mintennce o% ccounts#

$$. The Central Goard shall maintain proper acco!nts o its income and e7pendit!re"

incl!din* its administrative acco!nts" in orm 1?" and the balance sheet in orm 11. The

acco!nts shall be prepared or the inancial year and the boo8s shall be balanced on thethirty3irst arch each year.

.udit#

$0. (1) The acco!nts o the !nd" incl!din* the 2dministration 2cco!nt shall be

a!dited in accordance 'ith the instr!ctions iss!ed by the Central +overnment incons!ltation 'ith the Comptroller and 2!ditor3+eneral o India.

(%) The char*es on acco!nt o a!dit shall be paid o!t o the 2dministration 2cco!nt.

0&/nter!Stte trns%er o% mem*ers#

$. (1) Khere a member o the !nd ceases to be employed in one re*ion and sec!res

employment in another re*ion in an establishment to 'hich this Scheme applies or 'hichis an e7empted establishment or 'hich is not covered !nder the 2ct b!t has a provident

!nds scheme o its o'n" he may apply to the Commissioner 'ithin 'hose /!risdiction he'as previo!sly employed" in s!ch orm as the Commissioner may speciy" or transer o

balance o the provident !nd in his e7istin* acco!nt to his acco!nt in the other re*ion.

(%) Khere a member o the !nd ceases to be employed in one establishment and sec!resemployment in another establishment in the same re*ion" he may apply to the

Commissioner o the re*ion" in s!ch orm as the Commissioner may speciy or the

transer o balance o the Provident !nd in his previo!s acco!nt to his acco!nt in thene' establishment 'here he ta8es !p the employment.

&'ud)et#

$9. (1) The Commissioner shall place beore the Central Goard each year beore theirst ortni*ht o ebr!ary" a b!d*et sho'in* separately the probable receipts rom thecontrib!tions and rom the levy o administrative char*es and the e7pendit!re 'hich it

proposes to inc!r d!rin* the ollo'in* inancial year. The b!d*et as approved by the

Central Goard shall be s!bmitted or sanction to the Central +overnment 'ithin a montho its bein* placed beore the Central Goard.

(%) The Central +overnment may ma8e s!ch modiications in the b!d*et as it considersdesirable beore sanctionin* it.
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9&() The Commissioner may" at any time d!rin* the year" ma8e b!d*etary

reappropriation o !nds sanctioned in the b!d*et by the Central +overnment" provided

that

(i) the total amo!nt sanctioned in the b!d*et by the Central +overnment is note7ceeded6

(ii) it is made only or meetin* s!ch e7penses o administration as are to be met romthe 2dministration 2cco!nt in accordance 'ith para*raph $46 and

(iii) every reappropriation so made shall be reported by him to the Central Goard at the

ne7t meetin* o s!ch Goard.

#&(4) The Commissioner shall place beore the Central Goard a s!pplementary b!d*et or

a inancial year" *ivin* detailed estimates and reasons" o inescapable e7pendit!re 'hich

are li8ely to be inc!rred d!rin* the year or 'hich no provision has been made in thesanctioned b!d*et and 'hich cannot be covered !nder the provisions o s!b3para*raph

() o para*raph $9. The s!pplementary b!d*et as approved by the Central Goard shall be

s!bmitted or sanction to the Central +overnment 'ithin a month o its bein* placed

beore the Central Goard.($) 2ny e7pendit!re inc!rred by the Commissioner over and above the sanctioned b!d*eto a inancial year and not covered !nder the provisions o s!b3para*raphs () and (4) o

para*raph $9 shall be reported to the Central Goard at the earliest practicable moment

ater the e7cess is established or its consideration and or obtainin* sanction o theCentral +overnment.

em*ers ccounts#

$#. (1) 2n acco!nt shall be opened in the oice o the !nd in the name o each

member in 'hich it shall be credited:

($) his contrib!tions"

(b) the contrib!tions made by the employer in respect o him" and

(c) interest as provided in para*raph 0?.

1?&(%) 2ll items o acco!nt shall be calc!lated to 11&the nearest r!pee" $? paise or more

to be co!nted as the ne7t hi*her r!pee and raction o a r!pee less than $? paise to be

i*nored.

() ,n receipt o the contrib!tion card or cards o a member rom his employer or

employers at the end o the period o c!rrency o the contrib!tion card" the Commissionershall compare the entries made in the contrib!tion card or cards 'ith those made in the

members individ!al acco!nt in the oice o the !nd and shall rectiy any discrepancy

o!nd in these entries.

/nterest#

0?. (1) The Commissioner shall credit to the acco!nt o each member interest at s!ch

rate as may be determined by the Central +overnment in cons!ltation 'ith the Central

Goard.


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1%&(%) 1&($) Interest shall be credited to the members acco!nt on monthly r!nnin*

balances basis 'ith eect rom the last day in each year in the ollo'in* manner:

(i) on the amo!nt at the credit o a member on the last day o the precedin* year" less

any s!ms 'ithdra'n d!rin* the c!rrent yearinterest or t'elve months6

(ii) on s!ms 'ithdra'n d!rin* the c!rrent year interest rom the be*innin* o the

c!rrent year !p to the last day o the month precedin* the month o 'ithdra'al6

(iii) on all the s!ms credited to the members acco!nt ater the last day o theprecedin* yearinterest rom the 1st day o the month s!cceedin* the month o

credit to the end o the c!rrent year6

(iv) the total amo!nt o interest shall be ro!nded to the nearest 'hole r!pee (ity paise

co!ntin* as the ne7t hi*her r!pee).

(b) In the case o a claim or the re!nd !nder para*raph 0# or ?" interest shall be

payable !p to the end o the month precedin* the date on 'hich the inal payment is

a!thorised irrespective o the date o receipt o the claim rom the claimant concerned:

14&Providedthat interest !p to and or the c!rrent month shall be payable on the claims'hich are a!thorised on or ater the %$th day o a partic!lar month alon* 'ith act!al

payment ater the end o the c!rrent month:

Provided %urtherthat the rate o interest to be allo'ed on claims or re!nd or the

bro8en c!rrency period shall be the rate i7ed or the inancial year in 'hich the re!nd is

a!thorised.

1$&Expl$n$tion.I an establishment is covered or the irst time !nder the 2ctScheme

d!rin* the co!rse o the c!rrency period the interest shall be allo'ed on all the s!mscredited to the members acco!nt on and rom the irst day o the month s!cceedin* the

month o credit to the end o the c!rrent year.

() The a**re*ate amo!nt o interest credited to the acco!nts o the members shall be

debited to @Interest S!spense 2cco!ntB.

(4) In determinin* the rate o interest" the Central +overnment shall satisy itsel that

there is no overdra'al on the Interest S!spense 2cco!nt as a res!lt o the debit thereto othe interest credited to the acco!nts o members.

10&($) Interest shall not be credited to the acco!nt o a member i he inorms theCommissioner in 'ritin* that he does not 'ish to receive it. I" ho'ever" the member

s!bseF!ently as8s or interest" it shall be credited to his acco!nt 'ith eect rom the irst

day o the period o c!rrency in 'hich he ma8es a reF!est thereor.

Chapter JIII

omintions, pyments nd 7ithdr7ls %rom the %und

omintion#

01. (1) Each member shall ma8e in his declaration in orm %" a nomination conerrin*the ri*ht to receive the amo!nt that may stand to his credit in the !nd in the event o his

death beore the amo!nt standin* to his credit has become payable" or 'here the amo!nt

has become payable beore payment has been made.


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(%) 2 member may in his nomination distrib!te the amo!nt that may stand to his credit in

the !nd amon*st his nominees at his o'n discretion.

() I a member has a amily at the time o ma8in* a nomination" the nomination shall be

in avo!r o one or more persons belon*in* to his amily. 2ny nomination made by s!chmember in avo!r o a person not belon*in* to his amily shall be invalid :

10a&Provided that a resh nomination shall be made by the member on his marria*e andany nomination made beore s!ch marria*e shall be deemed to be invalid.

(4) I at the time o ma8in* a nomination the member has no amily" the nomination may

be in avo!r o any person or persons b!t i the member s!bseF!ently acF!ires a amily"

s!ch nomination shall orth'ith be deemed to be invalid and the member shall ma8e a

resh nomination in avo!r o one or more persons belon*in* to his amily.

1&(42) Khere the nomination is 'holly or partly in avo!r o a minor" the member may"or the p!rposes o this Scheme appoint a ma/or person o his amily" as deined in cla!se

(&) o para*raph %" to be the *!ardian o the minor nominee in the event o the member

predeceasin* the nominee and the *!ardian so appointed:

Providedthat 'here there is no ma/or person in the amily" the member may" at hisdiscretion" appoint any other person to be a *!ardian o the minor nominee.

($) 2 nomination made !nder s!b3para*raph (1) may at any time be modiied by a

member ater *ivin* a 'ritten notice o his intention o doin* so in orm 19&% anne7edhereto. I the nominee predeceases the member" the interest o the nominee shall revert to

the member 'ho may ma8e a resh nomination in respect o s!ch interest.

(0) 2 nomination or its modiication shall ta8e eect to the e7tent that it is valid on the

date on 'hich it is received by the Commissioner.

1#&Finncin) o% em*ers =i%e /nsurnce Policies#

0%. (1) Khere a member desires that premi!m d!e on a policy o ;ie Ins!rance ta8en

by him on his o'n lie sho!ld be inanced rom his Provident !nd 2cco!nt" he may

apply in s!ch orm and in s!ch manner as may be prescribed by the Commissioner.

(%) ,n receipt o s!ch application" the Commissioner" or" 'here so a!thorised by the

Commissioner" any other oicer s!bordinate to him may ma8e payment on behal o themember to the ;ie Ins!rance Corporation o India to'ards premi!m d!e on his policy:

Provided that no s!ch payment shall be made !nless the premi!m is payable %?&555

yearly.

() 2ny payment made !nder s!b3para*raph (%) shall be made o!t o and debited to the

members o'n contrib!tion 'ith interest thereon standin* to his credit in the !nd.

(4)


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(0) The Commission shall beore ma8in* payment in respect o e7istin* policies" satisy

himsel by reerence to the ;ie Ins!rance Corporation that no prior assi*nment o the

policy e7ists and the policy is ree rom all enc!mbrances.

()


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Commissioner" and ad/!sted a*ainst the payments made on behal o the member !nder

para*raph 0%.

Ressi)nment o% policies#

00. (1) Khere the acc!m!lations standin* to the credit o the member are 'ithdra'n!nder para*raph 0# or 'hen the member repays to the !nd the amo!nts o premi!m paid

by the Goard 'ith interest thereon at the rate provided in para*raph 0?" the Central Goardor 'here a!thorised by the Central Goard" the Commissioner shall reassi*n by

endorsement thereon the policy to the member to*ether 'ith a si*ned notice o

reassi*nment addressed to the ;ie Ins!rance Corporation.

(%) I the member dies beore the policy has been reassi*ned !nder s!b3para*raph (1)" the

Central Goard or 'here a!thorised by the Central Goard" the Commissioner" shallreassi*n by the endorsement thereon" the policy to the nominee o the member i a valid

nomination s!bsists and i there be no s!ch nominee" to s!ch person as may be le*ally

entitled to receive it to*ether 'ith a si*ned notice o reassi*nment addressed to the ;ie

Ins!rance Corporation.

Recovery o% mounts pid to7rds /nsurnce Policies#

0. I a policy mat!res or other'ise alls d!e or payment d!rin* the c!rrency o its

assi*nment" the Central Goard or" 'here so a!thorised by the Central Goard" theCommissioner shall realise the amo!nt ass!red to*ether 'ith bon!s" i any" accr!ed

thereon place to the credit o the member the amo!nt so realised" or the 'hole o the

amo!nt paid rom the !nd in respect o the policy 'ith interest thereon" 'hichever is

less" and re!nd the balance" i any" to the member.

09. %$&555

092. %0&555

%&%9&>ithdr7l" %rom the Fund %or the purchse o% d7ellin) house3%lt or %or

the construction o% d7ellin) house includin) the c-uisition o% suit*le site %or

the purpose#

09G. (1) The Commissioner" or 'here so a!thorised by the Commissioner" any oicer

s!bordinate to him" may on an application rom a member in s!ch orm as may beprescribed and s!b/ect to the conditions prescribed in this para*raph sanction rom the

amo!nt standin* to the credit o the member in the !nd" an %#&'ithdra'al

($) or p!rchasin* a d'ellin* ho!selat" incl!din* a lat in a b!ildin* o'ned /ointly

'ith others (o!tri*ht or on hire p!rchase basis)" or or constr!ctin* d'ellin* ho!se

incl!din* the acF!isition o a s!itable site or the p!rpose rom the Central +overn3ment" the State +overnment" a co3operative society" and instit!tion" a tr!st" a local

body or a Ao!sin* inance Corporation (hereinater reerred to as the

a*encya*encies)6 or


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(b) or p!rchasin* a d'ellin* site or the p!rpose o constr!ction o a d'ellin* ho!se or

a ready3b!ilt d'ellin* ho!selat rom any individ!al?&5556

1&(bb) or p!rchasin* d'ellin* ho!selat on o'nership basis rom a promoter

*overned by the provisions o any lats or 2partments ,'nership 2ct or by anyother analo*o!s or similar la' o the Central +overnment or the State +overnment

as may be in orce in any State or area or the time bein* and 'ho intends to con3str!ct or constr!cts d'ellin* ho!se or bloc8 o lats and the member is reF!ired to

pay to the said promoter in advance or inancin* the said constr!ction o theho!selat:

Providedthat the member has entered into an a*reement 'ith the promoter as may

be reF!ired !nder the lats or 2partments ,'nership 2ct or any other analo*o!s or

similar la' o the Central +overnment or State +overnment 'hich may be in orcein any State or any area and the said a*reement is re*istered !nder the Indian

=e*istration 2ct" 1#?9 6

(c) or the constr!ction o a d'ellin* ho!se on a site o'ned by the member or the

spo!se o the member or /ointly by the member and the spo!se" or or

completin*contin!in* the constr!ction o a d'ellin* ho!se already commenced bythe member or the spo!se" on s!ch site %&or or p!rchase o a ho!selat in the /oint

name o the member and the spo!se !nder cla!ses ($) and (b) above.

Expl$n$tion 1 : In this para*raph" the e7pression Lco3operative society means a society

re*istered or deemed to be re*istered !nder the Co3operative Societies 2ct" 1#1% (% o

1#1%)" or !nder any other la' or the time bein* in orce in any State relatin* to co3operative societies.

Expl$n$tion : &555

4&(%)($) or the p!rpose o p!rchase o a site or constr!ction o ho!se thereon" theamo!nt o 'ithdra'al shall not e7ceed the members basic 'a*es and dearness allo'ance

or t'enty3o!r months or the members o'n share o contrib!tions" to*ether 'ith theemployers share o contrib!tions 'ith interest thereon or the act!al cost to'ards the

acF!isition o the d'ellin* site" 'hichever is the least.

(b) or the p!rpose o acF!isition o a ready b!ilt ho!selat or or constr!ction o aho!selat" the 'ithdra'al shall not e7ceed the members basic 'a*es and dearness

allo'ance or thirty3si7 months or the members o'n share o contrib!tions" to*ether

'ith the employers share o contrib!tions" 'ith interest thereon" or the total cost oconstr!ction" 'hichever is the least.

()($)


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or the p!rchase o a d'ellin* ho!selat or or the constr!ction o a d'ellin* ho!se

incl!din* the reF!isition o a s!itable site or the p!rpose" s!ch a d'ellin* site or a

d'ellin* ho!selat" as the case may be" shall not be deemed to be an enc!mbered proper3ty:

Provided %urtherthat a land acF!ired on a perpet!al lease or on lease or a period o not

less than ? years or constr!ctin* a d'ellin* ho!selat" or a ho!selat b!ilt on s!ch aleased land" shall also not be deemed to be an enc!mbered property:

Provided lsothat 'here the site o the d'ellin* ho!selat is held in the name o any

a*ency" reerred to in cla!se ($) o s!b3para*raph (1) and the allottee is precl!ded romtranserrin* or other'ise disposin* o" the ho!selat" 'itho!t the prior approval o s!ch

a*ency" the mere act that the allottee does not have absol!te ri*ht o o'nership o the

ho!selat and the site is held in the name o the a*ency" shall not be a bar to the *ivin* oa&'ithdra'al !nder cla!se ($) o s!b3para*raph (1)" i the other conditions mentioned

in this para*raph are satisied.

(b)


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Providedthat this provision shall not be applicable in case o p!rchase o a d'ellin*

ho!selat on hire3p!rchase basis and in cases 'here a d'ellin* site is to be acF!ired or

ho!ses are to be constr!cted by a co3operative society on behal o its members 'ith avie' to their allotment to the members.

(0) E7cept in the cases speciied 41&in s!b3para*raphs () and (2)" no !rther

4%&'ithdra'al shall be admissible to a member !nder this para*raph.() 2n additional 4%&'ithdra'al !pto 4&t'elve months basic 'a*es and dearnessallo'ance or the members o'n share o contrib!tions 'ith interest thereon" in the

amo!nt standin* to his credit in the !nd" 'hichever is less" may be *ranted 44&555 in

one instalment only" or additions" s!bstantial alterations or improvements necessary tothe d'ellin* ho!se o'ned by the member or by the spo!se or /ointly by the member and

the spo!se :

Provided that the 4%&'ithdra'al shall be admissible only ater a period o ive years

rom the date o completion o the d'ellin* ho!se.

4$&(2) 2 !rther 4%&'ithdra'al eF!ivalent to the amo!nt o dierence bet'een the

amo!nt o 4%&'ithdra'al admissible to a member !nder s!b3para*raph (%) above as on

the date o resh application and the amo!nt o4%&'ithdra'al that 'as dra'n by amember !nder this para*raph any time d!rin* 0 years precedin* rd ,ctober" 1#91" may

be *ranted to s!ch a member (i) 'ho had availed o the earlier 4%&'ithdra'al or

p!rchase o a d'ellin* site and has no' proposed to constr!ct a d'ellin* ho!se on the

land so p!rchased or (ii) 'ho had availed o the earlier 4%&'ithdra'al or ma8in* initialpayment to'ards the allotmentp!rchase o a ho!selat rom any a*ency as reerred to in

cla!se ($) o s!b3para*raph (1) above and has no' proposed to avail o a 4%&'ithdra'al

or completin* the transaction to *et the sole o'nership o the ho!selat so p!rchased or(iii) 'ho had availed o the earlier 4%&'ithdra'al or constr!ction o a ho!se b!t co!ld

not complete the constr!ction in the time d!e to lac8 o !nds.

40&(G) 2 !rther 'ithdra'al !p to t'elve months basic 'a*es and dearness allo'anceor members o'n share o contrib!tion 'ith interest thereon in his acco!nt" 'hichever is

the least" may be *ranted or addition" alteration" improvement or repair o the d'ellin*ho!se o'ned by the member or by the spo!se or /ointly by the member and the spo!se"

ater ten years o 'ithdra'al" !nder s!b3para*raph ().

(9) 4&555.

(#)($) I the 4%&'ithdra'al *ranted !nder this para*raph e7ceeds the amo!nt act!ally

spent or the p!rpose or 'hich it 'as sanctioned" the e7cess amo!nt shall be re!nded by

the member to the !nd in one l!mp s!m 'ithin thirty days o the inalisation o thep!rchase" or the completion o the con

employees pf scheme 1952

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