Employees Provident Fund Scheme , 1952

(1) This scheme may be called the Employees Provident Funds Scheme,1952.
(2) Save as otherwise provided in the Scheme, this Chapter and Chapters II and III shall come into force at once and the remaining provisions shall come into force on such date or dates as the Central Government may by notification in the Official Gazette appoint and different dates may be appointed for different provisions.

(3)(a) Subject to the provisions of Sections 16 and 17 of the Act, this Scheme shall apply to all factories and other establishments to which the Act applies or is applied under sub-section (3) or sub-section (4) of Section 1 or Section 3 thereof:

Provided that the provisions of this Scheme shall not apply to-
(i) Omitted.
(ii) Omitted.
(iii) tea factories in the State of Assam.

(b) Provisions of this Scheme shall -

(i) as respects every establishment which is a factory engaged in any industry mentioned herein,namely,cement,cigarettes , electrical, mechanical or general engineering products, iron and steel, paper and textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial) be deemed to have come into force, with effect from the 2nd day of September, 1952;

(i-a) as respects factories relating to the industries added to Schedule I of the Act, by notification of the Government of India in the Ministry of Labour, No. S.R.O. 1566, dated the 4th July, 1956, come into force on the 31st day of July, 1956;

(ii) as respects factories relating to the industries added to Schedule I of the Act, by notification of the Government of India in the Ministry of Labour, No. S.R.O. 2026, dated the 3rd September,1956, come into force on the 30th day of September, 1956;

(iii) as respects factories relating to the mineral oil refining industry added to Schedule I of the Act by Notification of the Government of India in the Ministry of Labour, No.S.R.O. 218, dated the 19th January, 1957, come into force on the 31st day of January, 1957;

(iv) as respects plantations of tea (other than tea plantation in the state of Assam), coffee, rubber, cardamom and pepper, covered by the notification of the Government of India in the Ministry of Labour, No. S.R.O. 529, dated the 16th February, 1957, come into force on the 30th day of April, 1957;

(v) as respects factories relating to the oxygen, acetylene and carbon dioxide gases industry added to Schedule I of the Act as Item (x) under the head "Heavy and Fine Chemicals" by the notification of the Government of India in the Ministry of Labour and Employment , No. S.R.O. 1976, dated the 15th June, 1957, come into force on the 31st day of July, 1957;

(vi) as respects iron ore, limestone, manganese and gold mines, covered by the notification of the Government of India in the Ministry of Labour and Employment, No.S.R.O.2705, dated the 24th August, 1957, come into force on the 30th day of November, 1957;

(vii) as respects factories relating to the Industrial and Power alcohol and Asbestos Cement Sheets Industries added to Schedule I of the Act by the notification of the Government of India in the Ministry of Labour and Employment, No.S.R.O. 3067,dated the 28th September, 1957, come into force on the 30the day of November, 1957;

(viii) as respects coffee curing establishment covered by the notification of the Government of India in the Ministry of Labour and Employment, No. S.R.O. 3411, dated the 26th October, 1957, come into force on the 30th day of November, 1957;

(ix) as respects factories relating to the biscuit making industry including composite units making biscuits and products such as bread, confectionery and milk and milk powder, added to Schedule I of the Act, Vide Government of India, Ministry of Labour and Employment notification No. G.S.R. 170, dated the 12th March, 1958, come into force on the 30th day of April,1958;

(x) as respects road motor transport establishment covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 399, dated the 24th March, 1959, come into force on the 30th day of April,1959;

(xi) as respects mica mines and mica industry covered by the notification of the Government if India in the Ministry of Labour and Employment,Nos.G.S.R.312 AND 313, dated the 5th March, 1960, respectively, come into force on the 31st day of May, 1960;

(xii) as respect factories relating to the plywood industry covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 632, dated the 30th May, 1960, come into force on the 30th day of June, 1960;

(xiii) as respects factories relating to the automobile repairing and servicing industry covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 683, dated the 9th June, 1960, come into force on the 30th day of June, 1960;

(xiv) as respect any cane farm owned by a sugar factory covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 1274, dated the 21st October, 1960, come into force on the 30th day of November, 1960;

(xv) as respect factories relating to rice, flour and dal milling industries covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R.1443, dated the 24th November, 1960, come into force on the 31st December, 1960;

(xvi) as respects factories relating to the starch industry covered by the notification of the Government of India in the Ministry of Labour and Employment ,No. G.S.R. 535 dated the 10th April, 1961, come into force on the 31st May, 1961;

(xvii) as respects hotels and restaurants covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 704, dated the 19th May, 1961, come into force on the 30th day of June, 1961;

(xviii) as respects factories relating to petroleum or natural gas exploration, prospecting, drilling or production and petroleum or natural gas refining and establishments engaged in the storage or transport or distribution of petroleum or natural gas or products of either petroleum or natural gas covered by the notifications of the Government of India in the Ministry of Labour and Employment, Nos. G.S.R.705 and 706, dated the 16th May , 1961, respectively, come into force on the 30th day of June, 1961;

(xix) as respects the establishment covered by the notification of the Government of India in the Ministry of Labour and Employment, No G.S.R. 827, dated the 19th June, 1961, come into force on the 31st day of July, 1961;

(xx) as respect the establishments covered by the notification of the Government of India in the Ministry of Labour and Employment, No. G.S.R. 1013, dated the 29th July, 1961, come into force on the 31st day of July,1961;

(xxi) as respects the factories relating to the leather and leather products industry covered by the notification of the Government of India in the Ministry of Labour and Employment,G.S.R.No. 993, dated the 29th July,1961, come into force on the 31st day of August,1961;

(xxii) as respects the factories relating to the stoneware jars and crockery industries covered by the notification of the Government Government of India in the Ministry of Labour and Employment, No. G.S.R. 1382, dated the 4th November, 1961, come into force on the 30th day of November,1961;

(xxiii) as respects the establishments covered by the notificatio

In this Scheme, unless the context otherwise requires-

(a)" Act " means the Employees Provident Funds and Family Pension Fund Act, 1952 (19 of 1952);
(b) Deleted.
(c)"children" means legitimate children and includes adopted children if the Commissioner is satisfied that under the personal law of the Member adoption of a child is legally recognised;
(d)"Commissioner" means a Commissioner for Employees Provident Fund appointed under Section 5-D of the Act and includes a Deputy Provident Fund Commissioner and a Regional Provident Fund Commissioner;
(e) "continuous service" means uninterrupted service and includes service which is interrupted by sickness, accident, authorised leave, strike which is not illegal, or cessation of work not due to the employees fault;
(f) "excluded employee" means-

(i) An employee who, having been a Member of the Fund, withdrew the full amount of his accumulation in the Fund under clause (a) or (c) of sub-paragraph (1) of Paragraph 69;

(ii) an employee whose pay at the time he is otherwise entitled to become a Member of the Fund, exceeds fifteen thousand rupees per month;

Explanation.- "Pay" includes basic wages with dearness allowance, retaining allowance (if any) and cash value of food concessions admissible thereon;

(iv) an apprentice;

Explanation.- An apprentice means a person who, according to the certified standing orders applicable to the factory or establishment, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the appropriate Government;

(g)"family" means-
(i) in the case of a male member, his wife, his children, whether married or unmarried, his dependant parents and his deceased sons widow and children:

Provided that if a Member proves that his wife has ceased, under the personal law governing him or the customary law of the community to which the spouses belong, to be entitled to maintenance she shall no longer be deemed to be a part of the members family for the purpose of this Scheme, unless the Member subsequently intimates by express notice in writing to the Commissioner that she shall continue to be so regarded; and

(ii)In the case of a female member, her husband, her children, whether married or unmarried, her dependant parents, her husbands dependant parents and her deceased sons widow and children;

Provided that if a Member by notice in writing to the Commissioner expresses her desire to exclude her husband from the family, the husband and his dependant parents shall no longer be deemed to be a part of the members family for the purpose of this Scheme, unless the Member subsequently cancels in writing any such notice;

Explanation.- In either of the above two cases, if the child of a Member or, as the case may be, the child of a deceased son of the Member has been adopted by another person and if, under the personal law of the adopted, adopter, adoption is legally recognised such a child shall be considered as excluded from the family of the Member;

(h) "financial year" means the year commencing on the first day of April;
(i)"Government Security" shall have the meaning assigned to it in the Public Debt Act, 1944 (18 of 1944);
(j)"Inspector" means a person appointed as such under Section 13 of the Act;
(k)"quarter" means a period of three months commencing on the first day of January, the first day of April, the first day of July and the first day of October of each year;

(kk) "Seasonal factory" means a factory which is exclusively engaged in the manufacture of tea, sugar, rubber, turpentine, rosin, indigo, lac, fruit and vegetable preservation industry, rice milling industry, dal milling industry, cashewnut industry, stemming or re-drying of tobacco leaf industry, tiles industry, hosiery industry, oil milling industry, licensed salt industry, jute baling or pressing industry, fireworks and percussion cap works industry, ice or ice-cream industry or cotton ginning, baling and pressing industry;

(kkk) "seasonal establishment" means a plantation of tea, coffee, rubber, cardamom, pepper, a coffee curing establishment, a fire-clay mine or a gypsum mine;

(l)" Trustee" means a Member of a Board of Trustees; and
(m) all other words and expressions shall have the meaning respectively assigned to them in the Act.

(1)The Chairman of the Central Board shall call a meeting of the Board for the purpose of election to the Executive Committee of the members representing the employer or, as the case may be, the employees referred to in clauses (d) and (e) of sub-section (2) of Section 5-AA of the Act.

(2) In the meeting referred to in sub-paragraph (1), the Chairman of the Central Board may invite the members to propose the names of those members who represent the employers or, as the case may be , the employees and every such proposal shall be duly seconded by another Member of the Board.

(3) If the number of persons proposed and seconded for election under sub-paragraph (2) does not exceed the number of vacancies to be filled up from amongst the persons representing the employers , or,as the case may be, the employees, the persons whose names have been so proposed and seconded in relation to the category of employers or employees, shall be declared elected to the Executive Committee.

(4) If the number of persons proposed and seconded for election under sub-paragraph (2) exceeds the number of vacancies to be filled up from amongst the persons representing the employers or, as the case may be, the employees, each Member of the Board present at the meeting shall be given a ballot paper containing the names of all the candidates so proposed and seconded and he may record his votes thereon for as many candidates belonging to the categories of employers or employees as there are vacancies to be filled up in relation to each such category, but not more than one vote shall be given in favour of any one candidate. If any Member votes for more candidates than the number of vacancies in relation to the categories of employers or employees or gives more than one vote in favour of any one candidate, all his votes shall be deemed to be invalid.

(5)The person getting the highest number of votes shall be declared by the Chairman as duly elected to the Executive Committee at the same meeting or as soon thereafter as possible:

Provided that where there is an equality of votes between any candidates, and the addition of one vote will entitle any of the candidates to be declared elected, such candidate shall be selected by lot to be drawn in the presence of the Chairman in such manner as he may determine.

(6) If any question arises as to the validity of any election, it shall be referred to the Central Government, who shall decide the same.

(1) Until such time as a State Board is constituted for a State, the Chairman of the Central Board may, (by notification in the Official Gazette,) set up a Regional Committee for the State, which will function under the control of the Central Board. The Regional Committee shall consist of the following persons, namely:-

(a) a Chairman appointed by the Chairman of the Central Board:
(b) two persons appointed by the Chairman of the Central Board on the recommendation of the State Government;
(c)two persons representing employers in the industries or establishments to which this Scheme applies in the State appointed by the Chairman of the Central Board in consultation with such organisations of employers in the State as may be recognised for the purpose by the Central Government;

(d) two persons representing employees in the industries or establishments to which this Scheme applies in the State appointed by the Chairman of the Central Board in consultation with such organisations of employees in the State as may be recognised for the purpose by the Central Government; and

(e) the non-official members of the Central Board ordinarily resident in the State :

Provided that where the Chairman of the Central Board considers it expedient so to do, he may appoint up to five additional representatives of the employers or, as the case may be , the employees.

(2) A Regional Committee shall advise the Central Board-
(i) on such matters as the Central Board may refer to it time to time;
(ii) generally on all matters connected with the administration of the Scheme in the State and, in particular, on-
(a) progress of recovery of provident fund contributions and other charges,
(b) expeditious disposal of prosecutions,
(c) speedy settlement of claims,
(d) annual rendering of accounts to members of the Fund, and
(e) speedy sanction of advances.

(3) As soon as a State Board is constituted for any State, the Regional Committee constituted for that State under this paragraph shall stand dissolved.

(1) The term of office of the Chairman, Vice-Chairman and every Trustee of the Central Board referred to in clauses (b), (c), (d) and (e) of sub-section (1) of Section 5-A of the Act shall be five years commencing on and from the date on which their appointment is notified in the Official Gazette.

(2) The term of office of the Chairman and every Member of the Executive Committee referred to in clauses (b), (c), (d) and (e) of sub-section (2) of Section 5-AA shall be two years and six months commencing on and from the date on which their appointment is notified in the Official Gazette:

(2-A) The term of office of the Chairman and every Member of a Regional Committee referred to in clauses (b), (c) and (d) of sub- paragraph (1) of paragraph 4 shall be three years commencing on and from the date on which their appointment is notified in the Official Gazette.

(2-B) Notwithstanding anything contained in sub-paragraphs (1), (2) and (2-A) every Trustee or Member shall continue to hold office until the appointment of his successor is notified in the Official Gazette:
Provided that a Member of the Executive Committee shall cease to hold office when he ceases to be a Member of the Central Board.

(3)A Trustee or a Member referred to in sub-paragraphs (1), (2) and (2-A) appointed to fill a casual vacancy shall hold office for the remaining period of the term of office of the Trustee or Member in whose place he is appointed and shall continue to hold office on the expiry of the term of office until the appointment of his successor is notified in the Official Gazette.

(4) An outgoing trustee or member shall be eligible for re-appointment.

A Trustee of the Central Board or a Member of the Executive committee may resign his office by letter in writing addressed to the Central Government and his office shall fall vacant from the date on which his resignation is accepted by the Central Government.

A Member of a Regional Committee may resign his office by a letter in writing addressed to the Chairman, Central Board and his office shall fall vacant from the date on which his resignation is accepted by Chairman, Central Board.

If a trustee or a Member of the Executive Committee or a Regional Committee fails to attend three consecutive meetings of the Board of Committee, as the case may be, without obtaining leave of absence from the Chairman of the Board or Committee, he shall cease to be a Trustee or Member of the Committee :

Provided that the Central Government in the case of the Central Board or the Executive Committee and the Chairman, Central Board in the case of any Regional Committee may restore him to trusteeship or membership of the Executive Committee or of the Regional Committee, as the case may be, if it is satisfied that there were reasonable grounds for the absence.

(1) A person shall be disqualified for being appointed as , or for being a trustee or Member of a Regional Committee-

(i) if he is declared to be of unsound mind by a competent court; or
(ii) if he is an undischarged insolvent; or
(iii) if before or after the commencement of the Act he has been convicted of an offence involving moral turpitude; or
(iv) if he as an employer in relation to an exempted establishment or an establishment to which the Scheme applies has defaulted in the payment of any dues to the Central Board or the Fund recoverable from him under the Act or the Scheme, as the case may be .

(2) If any question arises whether any person is disqualified under sub-paragraph (1), it shall be referred to the Central Government and the decision of the Central Government on any such question shall be final.

The Central Government may remove from office any Trustee of the Central Board or the Chairman, Central Board may remove from office any Member of a Regional Committee,-
(i) if ,in the opinion of the Central Government or the Chairman, Central Board, such Trustee or Member has ceased to represent the interest which he purports to represent on the Board of Committee, as the case may be; or
(ii) If he as an employer in relation to an exempted establishment or an establishment to which the Scheme applies has defaulted in the payment of any dues to the Board or the Fund recoverable from him under the Act or the Scheme, as the case may be :

Provided that no such Trustee or Member shall be removed from office unless a reasonable opportunity is given to such Trustee or Member and the body whom he represents, of making any representation against the proposed action.

(1) Before a non-official Trustee or a Member of a Regional Committee, leaves India-

(a) he shall intimate to the Chairman of the Central Board or
of the Committee , as the case may be , of the dates of his departure from and expected return of India, or

(b) If he intends to absent himself for a period longer than six months, he shall tender his resignation.

(2) If any Trustee or a Member of a Regional Committee leaves India for a period of six months or more without intimation to the Chairman of the Central Board or of the Regional Committee, as the case may be, he shall be deemed to have resigned from the Central Board or the Committee.

(1) The Central Board of Trustees or the Executive Committee or a Regional Committee shall, subject to the provisions of Paragraph 12, meet at such place and time as may be appointed by the Chairman :

Provided that the Central Board or the Regional Committee shall meet at least twice in each financially year and the Executive Committee shall meet at least four times in each financial year.

(2) The Chairman may, whenever he thinks fit, and shall within fifteen days of the receipt of a requisition in writing from not less than one-third of the members in the case of the Central Board or the Executive Committee and not less than three members excluding the Chairman in the case of a Regional Committee, call a meeting thereof.

Notice of not less than 15 days from the date of posting, containing the date, time and place of every ordinary meeting together with a list of business to be conducted at the meeting shall be dispatched by registered post or by special messenger to each Trustee or a Member of the Executive Committee or the Regional Committee, as the case may be, present in India :

Provided that when the Chairman calls a meeting for considering any matter which in his opinion is urgent, a notice giving such reasonable time as he may consider necessary shall be deemed sufficient.

The normal pension in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this Scheme, on or before the 25th day of September, 2008, shall be restored after completion of fifteen years from the date of such commutation.

The Chairman of the Central Board or the Executive Committee or a Regional Committee shall preside at every meeting of the Central Board or the Executive Committee or the Regional Committee, as the case my be, at which he is present. If the Chairman of the Central Board is absent at any time, the Vice- Chairman thereof shall preside over the meeting of the Central Board and exercise all the powers of the Chairman at the meeting. If the Vice-Chairman of the Central Board or the Chairman of the Executive Committee or of a Regional Committee is absent at any time, the trustees or members present shall elect one of the trustees or, as the case may be, the members to preside over the meeting and the Trustee or Member so elected, shall exercise all the powers of the Chairman at the meeting.

(1) No business shall be transacted at a meeting of the Central Board or the Executive Committee or a Regional Committee unless at least eleven trustees or four members of the Executive Committee or a Regional Committee, as the case may be are present, of whom-

(a) in the case of the Central Board at least one each shall be from among those appointed under clauses (d) and (e) respectively of sub-section (1) of Section 5-A of the Act;

(aa) in the case of the Executive Committee at least one each shall be from among those elected under clauses (d) and (e) of sub-section (2) of Section 5-AA of the Act;

(b) in the case of a Regional Committee, at least one shall be from among those appointed under clause (c) and at least one from among those appointed under clause (d) of sub-paragraph (1) of paragraph 4.

(2) If at any meeting the number of trustees or members of the Executive Committee a Regional Committee is less than the required quorum, the Chairman shall adjourn the meeting to a date not later than seven days from the date of the original meeting informing the trustees or members of the Executive Committee or the Regional Committee, as the case may be, of the date, time and place of the adjourned meeting and it shall thereupon be lawful to dispose of the business at such adjourned meeting irrespective of the number of trustees or members of the executive committee or the Regional Committee present.

(1) If a Trustee or a Member is unable to attend any meeting of the Central Board or the Regional Committee, as the case may be, he may, by a written instrument signed by him, addressed to the Chairman of the Central Board or the Regional Committee, as the case may be, and explaining the reasons for his inability to attend the meeting appoint any representative of the organisation which he represents on the Central Board or the Regional Committee, as his substitute for attending that meeting of the Central Board or the Regional Committee in his place:

Provided that no such appointment shall be valid unless-

(i) Such appointment has been approved by the Chairmen of the Central Board or the Regional Committee, as the case may be; and

(ii) the instrument making such appointment has been received by the Chairman of the Central Board or the Regional Committee, as the case may be, before the date fixed for the meeting.

(2) A substitute validly appointed under sub-paragraph (1) shall have all the rights and powers of a Trustee or a Member, in relation to the meeting of the Central Board or the Regional Committee, in respect of which he is appointed and shall receive allowances and be under obligations as if he were a Trustee or a Member appointed under the Act and the Scheme respectively.

(3) A Trustee or a Member appointing a substitute for attending any meeting of the Central Board or the Regional Committee, as the case the may be, shall, notwithstanding anything contained in this paragraph, continue to be liable for the misappropriation or misapplication of the Fund by the substitute and shall also be liable for any act of misfeasance or non-feasance committed in relation to the Fund by the substitute appointed by him.

Every question considered at a meeting of the Central Board or the Executive Committee or a Regional Committee shall be decided by a majority of the votes of trustees or members of the Executive Committee or a Regional Committee present and voting. In the event of an equality of votes the Chairman shall exercise a casting vote :

Provided that the Chairman may, if he thinks fit, direct that any question shall be decided by the circulation of necessary papers to trustees or members of the Executive committee or a Regional committee present in India and by securing their opinions in writing. Any such question shall be decided in accordance with the opinion of the majority of trustees or members received within the time-limit allowed and if the opinions are equally divided, the opinion of the chairman shall prevail :

Provided further that any trustee or member of the Executive Committee or a Regional Committee may request that the question referred to trustees or members of the Executive Committee or a Regional Committee as the case may be, for written opinion be considered at a meeting of the Central Board or the Executive Committee or a Regional Committee and thereupon the Chairman may, and if the request is made by not less than three trustees or members of the Executive Committee or a Regional Committee, shall direct that it be so considered.

(1) The minutes of a meeting of the Central Board or the Executive Committee or Regional Committee showing inter alia the names of the trustees or members of the Executive committee or a Regional Committee present there at shall be circulated to all trustees or members of the Executive committee or a Regional Committee present in India not later than one month from the date of the meeting. The minutes shall thereafter be recorded in a minute book as a permanent record :

Provided that if another meeting is held within a period of one month and ten days, the minutes shall be circulated so as to reach the trustees or members at least ten days before such meeting.

(2) The records of the minutes of each meeting shall be signed by the Chairman after confirmation with such modification, if any, as may be considered necessary at the next meeting.

No act or proceeding of a Regional Committee shall be deemed to be invalid by reason merely of any vacancy in or any defect in the constitution of the Regional Committee.

(1) The travelling allowance and daily allowance of an official trustee or official member of the Executive Committee or a Regional Committee shall be governed by the rules applicable to him for journeys performed on official duties and shall be paid by the authority paying his salary.

(2) Subject to the provisions of sub-paragraphs (3) and (4), every non-official Trustee or non-official Member of the Executive Committee or a Regional committee shall be allowed travelling and daily allowances for attending the meeting of the Central Board or the Executive Committee or the Regional Committee, as the case may be, at the following rates, namely :-

(i) Travelling allowance,-
(A) a non-official Trustee or Member residing at the place where a meeting is held shall be allowed the actual expenditure incurred by him on conveyance, subject to the maximum of rupees one hundred and fifty for each day on which he attends one or more meeting ;
(B)a non-official Trustee or Member not residing at the place where a meeting is held, shall be allowed,-

(a) actual expenditure incurred by him on air journey by economy  class;
(b) actual expenditure incurred by him on single return journey fare by rail by first Air conditioned class or by 2nd A.C two tier sleeper or First Class, as the case may be ;
(c) Actual fare or expenditure incurred by him on road journey by taxi or own car or auto-rickshaw or bus (other than an air- conditioned bus) but not exceeding the rates notified by the concerned Director of Transport for journey by taxi or auto-rickshaw. When the journey is performed between places connected by rail, the fare will be limited to what would have been admissible to the Trustee or Member under clause (b) of this item.

(ii) Daily allowance.-
(A) A non-official Trustee or Member residing at a place where a meeting is held shall not be entitled to any daily allowance;
(B) A non-official Trustee or Member not residing at the place where a meeting is held shall be paid Rs 1500  per day if the Member stays in a hotel and Rs 200 per day as expenses towards food :

Provided that the daily allowance shall be calculated for attending the meeting for the entire absence from the normal place of residence of the non-official Trustee or Member on calendar day basis i.e. midnight to midnight as under :-

For absence not exceeding 6 hours Nil
For absence exceeding 6 hours but not exceeding 12 hours 70%
For absence exceeding 12 hours 100%

(3) Where such Trustee or Member being a Member of a State Legislature attends a meeting of the Central Board or the Executive Committee or the Regional committee, as the case may be, he shall be entitled-

(i) when the State Legislature is not is session , to such travelling and daily allowances as are admissible to Grade I Officers of the State Government ; and
(ii) when the State Legislature is in session to such travelling and daily allowances as are admissible to the members of that Legislature for attending meeting of the Legislature.

(4) Where such Trustee or Member being Member of either House of Parliament attends a meeting of the Central Board or the Executive Committee, The Regional Committee, as the case may be, he shall be entitled to such travelling and daily allowances as may be admissible to him under the rules laid down by the Central Government on the subject from time to time:

Provided that when a Minister is appointed as Chairman or Member of the Board or of the Executive Committee or of the Regional Committee,and attends a meeting of such Central Board or the Executive Committee or Regional Committee, as the case may be, his travelling and daily allowance shall be governed by the rules applicable to him for journeys performed on official duties and shall be paid by the authority paying his salary.

(5) Omitted.

Explanation I.- No daily or travelling allowance in respect of any day or journey, as the case may be, shall be claimed under this paragraph by a Trustee or Member of the Executive committee or a Regional Committee if he has drawn or will draw allowance for the same from his employer or as a Member of any Legislature or of any Committee or Conference constituted or convened by Government and no travelling allowance shall be claimed if he uses a means of transport provided at the expense of government or his employer.

The Central Provident Fund commissioner and the Financial Adviser and Chief Accounts Officer shall not undertake any work unconnected with their office without the previous sanction of the Central Government.

Omitted.

The Central Board may, open such regional and local offices as it may consider desirable for the proper implementation of the Scheme. It may also define the functions and duties of the regional and local offices.

(1) The Central Provident Fund Commissioner shall be the Secretary of the Central Board and of the Executive Committee. The Regional Provident Fund Commissioner-in-charge of the Region shall be the Secretary of the Regional Committee of the State/Union Territory within his jurisdiction.

(2) The Secretary to the Central Board or the Executive Committee or a Regional Committee shall, in consultation with the Chairman, convene meetings of the Central Board or the Executive Committee or the Regional Committee, as the case may be, keep a record of its minutes and shall take the necessary steps for carrying out the decisions of the Central Bard or the Executive Committee or the Regional Committee, as the case may be.

The power of appointment vested in the Central Board under sub-section (3) of Section 5-D of the Act shall be exercised by the Board in relation to posts carrying the maximum scale of pay Rs. 14,300-Rs. 18,300.

References relating to all appointments of officers of the level of the Regional Provident Fund Commissioners and above made by the Chairman, Central Board shall be placed before the next meeting of the Central Board for information.

(1) A Commissioner may, without reference to the Central Board, sanction expenditure on contingencies, supplies and services and purchases of articles required for administering the Fund subject to financial provision in the budget and subject to the limits up to which a Commissioner may be authorised to sanction expenditure on any single item from time to time by the Central Board.
(2) A Commissioner may also exercise such administrative and financial powers other than those specified in sub-paragraph (1) above ,as may be delegated to him from time to time by the Central Board.
(3) A Commissioner may delegate from time to time the administrative and financial powers delegated to him by the Central Board to any officer under his control or superintendence to the extent considered suitable by him for the administration of the Scheme. A statement of such delegation shall be placed before the next meeting of the Central Board for information.

(1) The Central Board , may by a resolution empower its Chairman to sanction expenditure on any item, whether in the nature of capital expenditure or revenue expenditure, as it may deem necessary for the efficient administration of the fund, subject to financial provisions in the Budget where such expenditure is beyond the limits up to which the Commissioner is authorised to sanction expenditure on any single item.

(2) The Central Board may also, be a resolution, empower its Chairman to appoint such officers and employees other than those mentioned in sub-section (1) and (2) of Section 5-D of the Act, as he may consider necessary for the efficient administration of the Scheme.

(3) All sanctions of expenditure made by the Chairman in pursuance of sub-paragraph (1) shall be reported to the Central Board as soon as possible after the sanction of the expenditure.

Until the Central Board is constituted, the Central Government shall administer the Fund and may exercise any of the powers and discharge any of the functions of the Board :
Provided that on the constitution of the Central Board, the Central Government shall transfer amounts standing to the credit of the Fund to the Central Board.

(1) (a) Every employee employed in or in connection with the work of a factory or other establishment to which this Scheme applies, other than an excluded employee, shall be entitled and required to become a member of the Fund from the day this paragraph comes into force in such factory or other establishment.

(b) Every employee employed in or in connection with the work of a factory or other establishment to which this Scheme applies, other than an excluded employee, shall also be entitled and required to become a Member of the Fund from the day this paragraph comes into force in such factory or other establishment if on the date of such coming into force, such employee is a subscriber to a provident fund maintained in respect of the factory or other establishment or in respect of any other factory or establishment (to which the Act applies) under the same employer :

Provided that where the Scheme applies to a factory or other establishment on the expiry or cancellation of an order of exemption under Section 17 of the Act, every employee who but for the exemption would have become and continued as a Member of the Fund, shall become a Member of the Fund forthwith.

(2) After this paragraph comes into force in a factory or other establishment, every employee employed in or in connection with the work of that factory or establishment, other than an excluded employee, who has not become a Member already shall also be entitled and required to become a member of the Fund from the date of joining the factory or establishment.

(3) An excluded employee employed in or in connection with the work of a factory or other establishment to which this scheme applies shall, on ceasing to be such an employee, be entitled and required to become a Member of the Fund from the date he ceased to be such employee.

(4) On re-election of an employee or a class of employees exempted under Paragraph 27 or Paragraph 27-A to join the Fund or on the expiry or cancellation of an order under that paragraph, every employee, shall forthwith become a Member thereof.

(5) Every employee who is a Member of a private provident fund maintained in respect of an exempted factory or other establishment and who but for exemption would have become and continued as a Member of the Fund shall, on joining a factory or other establishment to which this scheme applies, become a Member of the Fund forthwith.

(6) Notwithstanding anything contained in this paragraph an officer not below the rank of an Assistant Provident Fund Commissioner may, on the joint request in writing of any employee of a factory or other establishment to which this Scheme applies and his employer, enroll such employee as a Member or allow him to contribute on more than rupees fifteen thousand of his pay per month if he is already a Member of the Fund and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund,
provided that the employer gives an undertaking in writing that he shall pay administrative charges payable and shall comply with all statutory provisions in respect of such employee.

(1) A Member of the Fund shall continue to be a Member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of Exemption under Paragraph 27 or Paragraph 27-A.

(2) Every Member employed as an employee other than an excluded employee, in a factory or other establishment to which the Scheme applies, shall contribute to the Fund, and the contribution shall also be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in Paragraph 29:

Provided that subject to the provisions contained in sub-paragraph (6) of Paragraph 26 and in paragraph 27, or sub-paragraph (1) of Paragraph 27- A, where the monthly pay of such a Member exceeds fifteen thousand rupees, the contribution payable by him , and in respect of him by the employer , shall be limited to the amounts payable on a monthly pay of fifteen thousand rupees including dearness allowance, retaining allowance (if any) and cash value of food concession.

If any question arises whether an employee is entitled or required to become or continue as a Member, or as regards the date from which he is so entitled or required to become a Member, the decision thereon of the Regional Commissioner shall be final :
Provided that no decision shall be given unless both the employer and the employee have been heard.

(1) A commissioner may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of the Scheme an employee to whom the Scheme applies on receipt of application in Form I from such an employee :

Provided that such an employee is entitled to benefit in the nature of Provident Fund, gratuity or old-age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and the Scheme.

(2) Where an employee is exempted as aforesaid, the employer shall in respect of such employee maintain such account, submit such returns, provide such facilities for inspection, pay such inspection charges and invest provident fund collections in such manner as the Central Government may direct.
Provided that above mention returns shall be submitted by the employer in electronic format also, in such form and manner as may be specified by the Commissioner.

(3) An employee exempted under sub-paragraph (1) may by an application to the Commissioner make a declaration that he shall become a Member of the Fund.

(4) No employee shall be granted exemption or permitted to apply out of exemption more than once on each account.

(1) The appropriate Government may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme any class of employees to whom the Scheme applies:

Provided that such class of employees is entitled to benefits in the nature of Provident Fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favorable than the benefits provided under the Act and this Scheme.

(2) Where any class of employee is exempted as aforesaid, the employer shall in respect of such class of employees maintain such account, submit such returns, provide such facilities for inspection, pay such inspection charges and invest provident fund collections in such manner as the Central Government may direct.
Provided that above mentioned returns shall be submitted by the employer in electronic format also, in
such form and manner as may be specified by the Commissioner.

(3) A class of employees exempted under sub-paragraph (1) or the majority of employees constituting such class may by an application to the Commissioner make a declaration that the class of employees shall become Member of the Fund.

(4) No class of employees shall be granted exemption or permitted to apply out of exemption more than once on each account.

(5) The Provisions of this paragraph shall be deemed to have come into force with effect from 14th October, 1953.

All exemptions already granted or to be granted hereafter under section 17 of the Act or under paragraph 27A of the scheme shall be subject to the terms and conditions as given in the Appendix A.

Appendix “A”

1. The employer shall establish a Board of Trustees under his Chairmanship for the management of the Provident Fund according to such directions as may be given by the Central Government or the Central Provident Fund Commissioner, as the case may be, from time to time. The Provident Fund shall vest in the Board of Trustees who will be responsible for and accountable to the employees’ Provident Fund Organisation, inter alia, for proper accounts of the receipts into and payment from the Provident fund and the balance in the custody. For the purpose, the “employer” shall mean-
In relation to an establishment, which is factory, the owner or occupier of the factory; and In relation to any other establishment, the person who, or the authority, that has the ultimate control over the affarirs of the establishments.

2. The Board of Trustees shall meet atleast once in every three months and shall function in the accordance with the guidelines that may be issued from time to time by the Central Government/Central Provident Fund Commissioner (CPFC) or an officer authorized by him.

3. All employees, as defined in section 2(f) of the Act, who have been eligible to become members of the Provident Fund, had the establishment not been granted exemption, shall be enrolled as members.

4.Where an employee who is already a member of Employees’ Provident Fund or a provident fund of any other emempted establishment is employed in his establishment, the employer shall immediately enroll him as a member
of the fund. The employer should also arrange to have the accumulations in the provident fund account of such employee with his previous employer transferred and credited into his account.

5. the employer shall transfer to the Board of Trustees the contributions payable to the provident fund by himself and employees at the rate prescribed under the Act from time to time by the 15th of each month following the month for which the contributions are payable. The employer shall be liable to pay simple interest in terms of the provisions of section 7Q of the Act for any delay in payment of any dues towards the Board of Trustees.

6. The employer shall bear all the expenses of the administration of the Provident Fund and also make good any other loss that may be caused to the Provident Fund due to theft, burglary, defalcation, misappropriation or any other reason.
7. Any deficiency in the interest declared by the Board of Trustees is to be made good by the employer to bring it up the statutory limit.

8.The employer shall display on the notice board of the establishment, a copy of the rules of the funds as approved by the appropriate authority and as and when amended thereto along with a translation in the language of the
majority of the employees.
9.the rate of contribution payable, the conditions and quantum of advances and other matters laid down under the provident fund rules of the establishment and the interest credited to the account of each member, calculated on the monthly running balance of the member and declared by the Board of Trustees shall not be lower than those declared by the Central Government under the various provisions prescribed in the Act and the Scheme framed there under.

10. Any amendment to the Scheme, which is more beneficial to the employees than the existing rules of the establishment, shall be made applicable to them automatically pending formal amendment of the Rules of
the Trust.

11. No amendment in the rules shall be made by the employer without the prior approval of the Regional Provident Fund Commissioner (referred to as RPFC hereafter). The RPFC shall before giving his approval give a reasonable
opportunity to the employees to explain their point of view.

12. All claims for withdrawals, advance and transfer should be settled expeditiously, within the maximum time frame prescribed by the Employees’ Provident Fund Organisation.

13.
The Board of Trustees shall maintain detailed accounts to show the contribution credited, withdrawal and interest in respect of each employee. The maintenance of such records should preferably be done electronically.The establishments should periodically transmit the details of members’ accounts electronically as and when direct by the CPFC/RPFC.

14.The Board of Trustees shall issue an annual statement of accounts or pass books to every employee within six months of the close of financial/accounting year free of cost once in the year. Additional printouts can be made available as and when the members want, subject to nominal charges. In case of passbook, the same shall remain in custody of employee to be updated periodically by the trustees when presented to them.

15.the employer shall make necessary provisions to enable all the members to be able to see their account balance from the computers terminals as and when required by them.

16. The Board of Trustees and the employer shall file such returns monthly/annually as may be prescribed by the Employees’ Provident Fund Organization within the specified time-limit, failing which it will be deemed as a default and the Board of Trustees and employer will jointly and separately be liable for suitable penal action by the Employees’ Provident Fund  Organisation.
Provided that above mentioned returns shall be submitted by the employer in electronic format also, in
such form and manner as may be specified by the Commissioner.

17. the Board of Trustees shall invest the monies of the provident fund as per the directions of the government from time to time. Failure to make investments as per directions of the Government shall made the Board of Trustees separately and jointly liable to surcharge as may be imposed by the Central Provident Fund Commissioner or his representative.

(a) The securities shall be obtained in the name of Trust. The securities so obtained should be in dematerialized (DEMAT) form and in case the required facility is not available in the area where the trust operates, the Board of Trustees shall inform the Regional Provident Fund Commissioner concerned about the same.
b) the Board of Trustees shall maintain a script wise register and ensure timely realization of interest.
c) The DEMAT Account should be opened through depository participants approved by Reserve Bank of India and Central Government in accordance with the instruction issued by the Central government in this regard.

d) The cost of maintaining DEMAT account should be treated as incidental cost of investment by the Trust. Also all types of Cost of investment like brokerage for purchase of securities etc. shall be treated as incidental cost of investment by the Trust.

19. All such investments made, like purchase of securities and bonds, should be lodged in the safe custody of  depository participants, approved by reserve bank of India and Central Government, who shall be the custodian of
the same. On closure of establishment or liquidation or cancellation exemption from EPF Scheme, 1952, such custodian shall transfer the investment obtained in the name of the Trust and standing in its credit to the RPFC concerned directly on receipt of request from the RPFC concerned to that effect.

20. The exempted establishment shall intimate to the RPFC concerned the details of depository participants (approved by the Reserve Bank of India and Central Government), with whom and in whose safe custody, the
investments made in the name of trust, viz., Investments made in securities, bonds, etc. have been lodged. However, the Board of Trustees may raise such sum or sums of money as may be required for meeting obligatory e

(1) Every authority in charge of, or entrusted with the management of, any Provident Fund in existence , the accumulations wherein are to be transferred to the Fund under sub-section (2) of section 15 of the act, or sub-section (5) of section 17 thereof, as the case may be shall,

(i) send to the Commissioner a statement showing the amount standing to the credit of each subscriber on the date of the transfer the total accumulations to the credits of subscribers generally on that date and the advances, if any, taken by the subscribers within twenty-five days of the application of the Scheme, or cancellation of the exemption, as the case may be;
(ii)transfer to the fund in the manner specified in sub-paragraph (2) the total accumulations standing to the credit of the subscribers in relation to each factory within ten days of the application of the Scheme, or cancellation of exemption , as the case may be, in case of liquid cash in bank and within thirty days in case of securities; and
(iii) transfer to the Central Board all pass-books, books of account and other documents relating to the said accumulations.

(2) All accumulations standing to the credit of the subscribers, howsoever invested, shall be transferred to the fund by the authority aforesaid in cash :
Provided that where the whole or any part of such accumulations consists of investments in Government securities or in securities guaranteed by appropriate Government as regards repayment of principal and payment of interest or in both the authority making the transfer to the Fund shall transfer those securities at the price for which they were actually purchased or transfer a sum equivalent to such price . In case, however, the whole or any part of such accumulations is invested in National Savings Certificates or National Plan Savings Certificates, the appreciated value of such certificates at the time of the transfer will be taken into account in determining the amount of the accumulations to be transferred, provided that the difference between the face-value of such certificate and their appreciated value at the time of the transfer has already been credited to the accounts of the subscribers :
Provided further that where the whole or any part of such accumulations consists of investments in securities bearing no guarantee of an appropriate Government as regards repayment of principal and payment of interest the Central Government may, in exceptional cases, allow acceptance of the transfer of such securities from the authority making the transfer to the Fund at the price for which they were actually purchased.
Explanation.- The total amount of provident fund accumulations includes interest thereon and the authority in charge of the Fund shall transfer in cash any balance of interest on investments which happens to be undistributed on the date of transfer , or realised or realisable for the period prior to the registration of the securities in the name of the Central Board of Trustees, Employees' Provident Fund.

(3) Any cash transferred under sub-paragraph (2) shall be deposited in any office or branch of the Reserve Bank of India or the State Bank of India to the credit of the Central Board , and the receipt obtained in respect thereof shall be forwarded to the Commissioner :
Provided that where there is no office or branch of either of the two Banks at the place where the factory or other establishment is situated the amount shall be credited to the Central Board by means of a Reserve Bank of India Governmental draft at par.

(4) The accumulations transferred to the Fund in accordance with this paragraph shall be credited to be account of each of the members of the Fund, to the extent to which he may be entitled thereto having regard to the statement furnished by the authority aforesaid.

(5) When the accumulations in any such Provident Fund as is referred to in sub-paragraph (1) have been so transferred to the Fund, the Commissioner may, by notification in the Gazette of India, declare that the subscribers of such Provident Fund have now become members of the Fund and that the accumulations aforesaid have now become vested in the Central Board.

(1) The contributions payable by the employer under the scheme shall be at the rate of ten per cent of the basic wages, dearness allowance (including the cash value of any food concessions ) and retaining allowance (if any) payable to each employee to whom the Scheme applies :

Provided that the above rate of contribution shall be twelve per cent in respect of any establishment or class of establishment which the Central Government may specify in the Official Gazette from time to time under the first proviso to sub-section (1) of Section 6 of the act.

(2) The contribution payable by the employee under the Scheme shall be equal to the Contribution payable by the employer in respect of such employee :
Provided that in respect of any employee to whom the scheme applies, the contribution payable by him may, if he so desires, be an amount exceeding 10% or 12%, as the case may be, of his basic wages, dearness allowance and retaining allowance (if any) subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under the Act.

(3) The contribution shall be calculated on the basis of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance (if any ) actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis.

(4) Each contribution shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupees less than 50 paise to be ignored.

(1) The employer shall, in the first instance, pay both the contribution payable by himself (in this Scheme referred to as the employer's contribution) and, also on behalf of the member employed by him directly or by or through a contractor, the contribution payable by such member (in the Scheme referred to as the member's contribution).

(2) In respect of employees employed by or through a contractor, the contractor shall recover the contribution payable by such employee (in the Scheme referred to as the member's contribution ) and shall pay to the principal employer the amount of member's contribution so deducted together with an equal amount of contribution (in the Scheme referred to as the employer's contribution) and also administrative charges.

(3) It shall be the responsibility of the principal employer to pay both the contribution payable by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor and also administrative charges .
Explanation.-For the purposes of this paragraph the expression "administrative charges" means such percentage of the pay (basic wages, dearness allowances, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee and in respect of which provident fund contributions are payable as the Central Government may, in consultation with the Central Board and having regard to the resources of the Fund for meeting its normal administrative expenses fix.

Notwithstanding any contract to the contrary the employer shall not be entitled to deduct the employer's contribution from the wage of a member or otherwise to recover it from him.

(1) The amount of a member's contribution paid by the employer or a contractor shall, notwithstanding the provisions in this Scheme or any law for the time being in force or any contract to the contrary, be recoverable by means of deduction from the wages of the member and otherwise :

Provided that no such deduction may be made from any wage other than that which is paid in respect of the period or part of the period in respect of which the contribution is payable :

Provided further that the employer or a contractor shall be entitled to recover the employee's share from a wage other than that which is paid in respect of the period for which the contribution has been paid or is payable where the employee has in writing given a false declaration at the time of joining service with the said employer or a contractor that he was not already a member of the Fund:

Provided further that where no such deduction has been made on account of an accidental mistake or a clerical error, such deduction may, with the consent in writing of the Inspector, be made form the subsequent wages.

(2) Deduction made from the wages of a member paid on daily, weekly or fortnightly basis should be totalled up to indicate the monthly deductions.

(3) Any sum deducted by an employer or a contractor from the wages of an employee under this Scheme shall be deemed to have been entrusted to him for the purpose of paying the contribution in respect of which it was deducted.

(1) Where an employer makes default in the payment of any contribution to the Fund, or in the transfer of accumulations required to be transferred by him under sub-section (2) of Section 15 or sub-section (5) of Section 17 of the Act or in the payment of any charges payable under any other provisions of the Act or Scheme or under any of the conditions specified under Section 17 of the Act, the Central Provident Fund Commissioner or such officer as may be authorised by the Central Government, by notification in the Official Gazette in this behalf, may recover from the employer by way of penalty, damages at the rates given below:
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Period of default Rate of damages
(Percentage of Arrears per annum)
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(a) Less than two months Five %
(b) Two months and above but less than four months - Ten %
(c) Four months and above but less than six months  - Fifteen %
(d) Six months and above Twenty Five %
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(2) The damages shall be calculated to the nearest rupees, 50 paise or more to be counted as the nearest higher rupee and fraction of a rupee less than 50 paise to be ignored.

The Central Board may reduce or waive the damages levied under Section 14-B of the Act in relation to an establishment specified in the second proviso to Section 14-B, subject to the following terms and conditions, namely,-

(a) in case of a change of management including transfer of the undertaking to workers' cooperative and in case of merger or amalgamation of sick industrial company with any other industrial company, complete waiver of damages may be allowed ;

(b) in cases, where the Board for Industrial and Financial Reconstruction, for reasons to be recorded in its scheme, in this behalf recommends, waiver of damages up to 100 per cent may be allowed ;

(c) in other cases, depending on merits, reduction of damages up to 50 per cent may be allowed.

Every person who is required or entitled to become a member of the Fund shall be asked forthwith by his employer to furnish and shall , on such demand, furnish to him, for communication to the Commissioner, particulars concerning himself and his nominee required for the Declaration Form in Form 2. Such employer shall enter the particulars in the Declaration Form and obtain the signature or thumb-impression of the person concerned.

The employer in relation to a factory or other establishment shall, before taking any person into employment, ask him to state in writing whether or not he is a member of the Fund and if he is , ask for the Account Number and/or the name and particulars of the last employer. If he is unable to furnish the Account Number, he shall require such person to furnish and such person shall, on demand, furnish to him for communication to the Commissioner, particulars regarding himself and his nominee required for the Declaration Form. Such employer shall enter the particular in the Declaration From and obtain the signature or thumb-impression of the person concerned :

Provided that in the case of any such employee who has become a member of the Family Person Fund under the Employees' Family Pension Scheme, 1971, the aforesaid Declaration Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme.

The employer shall prepare a contribution card in Form 3 or in Form 3-A as may be appropriate, in respect of every employee in his employment at the commencement of the Scheme or who is taken into employment after that date and who is required or entitled to become or is a member of the Fund including those who produce an Account Number and in respect of whom no fresh Declaration Form is prepared :

Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees' Family Pension Scheme, 1971, the aforesaid Forms shall also contain such particulars as are necessary to comply with the requirements of that scheme.

(1) Every employer shall send to the commissioner, within fifteen days of the commencement of this Scheme, a consolidated return in such form as the Commissioner may specify of the employees required or entitled to become members of the fund showing the basic wage, retaining allowance (if any) and dearness allowance including the cash value of any food concession paid to each of such employees :

Provided that if there is no employee who is required or entitled to become a member of the Fund, the employer shall send a NIL
return.

(2) Every employer shall send to the Commissioner within fifteen days of the close of each month a return -

(a) In Form 5, of the employees qualifying to become members of the Fund for the first time during the preceding month together with the declarations in Form 2 furnished by such qualifying employees, and

(b) In such form as the Commissioner may specify, of the employees leaving service of the employer during the preceding month:

Provided that if there is no employee qualifying to become a member of the Fund for the first time or there is no employee leaving service of the employer during the preceding month, the employer shall send a NIL return.

“(c) Provided further that a copy of the forms as mentioned in clauses (a) and (b) above shall be provided by the employer to concerned employees immediately after joining the service or at the time of leaving the service, as the case may be.

(3) Omitted.

(4) Every employer shall maintain an inspection notebook in such form as the Commissioner may specify, for an Inspector to record his observations on his visit to the establishment.

(5) Every employer shall maintain such accounts in relation to the amounts contributed to the Fund by him and by his employees as the Central Board may, from time to time, direct and it shall be the duty of every employer to assist the Central Board in making such payments from the Fund to his employees as are sanctioned by or under the authority of the Central Board.

(6) Notwithstanding anything hereinbefore contained in this paragraph, the Central Board may issue such directions to employers generally as it may consider necessary or proper for the purpose of implementing the Scheme, and it shall be the duty of every employer to carry out such directions.

(7) Every employer shall send to the Commissioner such returns in electronic format also, in such form
and manner as may be specified by the Commissioner.

Every employer in relation to a factory or other establishment to which the Act applies on the date of coming into force of the Employees Provident Funds (Tenth Amendment) Scheme, 1961, or is applied after that date, shall furnish in duplicate to the Regional Commissioner in Form 5-A annexed hereto particulars of all the branches and departments, owners, occupiers, directors, partners, manager or any other person or persons who have the ultimate control over the affairs of such factory or establishment and also send intimation of any change in such particulars, within fifteen days of such change, to the Regional Commissioner by registered post and in such other manner as may be specified by the Regional commissioner:

Provided that in the case of any employer of a factory or other establishment to which the Act and the Family Pension Scheme, 1971, shall apply the aforesaid form may be deemed to satisfy the requirements of the Employees Family Pension Scheme, 1971, for the purpose specified above.

Provided further that above mentioned details shall be furnished by the employer in the electronic
format also, in such form and manner as may be specified by the Commissioner.

Every contractor shall, within seven days of the close of every month, submit to the principal employer a statement showing the recoveries of contribution in respect of employees employed by or through him and shall also furnish to him such information as the principal employer is required to furnish under the provisions of the Scheme to the Commissioner.

On receipt of the information referred to in Paragraph 33, 34 and 36, the commissioner shall promptly allot an Account Number to each employee qualifying to become a member and shall communicate the Account Number to the member through the employer.

(1) The employer shall, before paying the member his wages in respect of any period or part of period for which contribution are payable, deduct the employees contribution from his wages which together with his own contribution as well as an administrative charge of such percentage of the pay (basic wages, dearness allowance, retaining allowance, if any, and cash value of food concessions admissible thereon) for the time being payable to the employees other than an excluded employee and in respect of which provident fund contribution are payable, as the Central Government may fix, he shall within fifteen days of the close of every month pay the same to the Fund by separate bank drafts or cheques on account of contributions and administrative charge :

Provided that if the payment is made by a cheque, it should be drawn only on the local bank of the place in which deposits are, made:

Provided further that where there is no branch of the Reserve Bank or the State Bank of India at the station where the factory or other establishment is situated, the employer shall pay to the Fund the amount mentioned above by means of Reserve Bank of India Governmental drafts at par separately on account of contributions and administrative charge.

(2) The employer shall forward to the Commissioner within twenty-five days of close of the month, a monthly abstract in such form as the Commissioner may specify showing the aggregate amount of recoveries made from the wages of all the members and the aggregate amount contributed by the employer in respect of all such members for the month :

Provided that an employer shall send a Nil return, if no such recoveries have been made from the employees:

Provided further that in the case of any such employee who has become a member of the Pension fund under the Employees Pension Scheme, 1995, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that scheme.

(3) The employer shall send to the Commissioner within one month of the close of the period of currency, a consolidated Annual Contribution Statement in Form 6-A,showing the total amount of recoveries made during the period of currency from the wages of each member and the total amount contributed by the employer in respect of each such member for the said period. The employer shall maintain on his record duplicate copies of the aforesaid monthly abstract and consolidated annual contribution statement for production at the time of inspection by the Inspector.

Provided that the employer shall send to the Commissioner returns or details as required under sub paragraphs
(2) and (3) above, in electronic format also, in such form and manner as may be specified by the Commissioner.

The Central Government may, in consultation with the Central Board and having regard to the resources of the fund available for meeting its normal administrative expenses, fix the percentage of administrative charges payable under sub-paragraph (1) of Paragraph 38 above.

The amount recovered every month from the wages of an employee as well as the contribution made by the employer in respect of each such employee shall be entered by the employer every month in the contribution card opened in the name of each member under this Scheme.

With effect from such date as the Commissioner may specify in this behalf, every employer shall, on an employee becoming a member of the Fund, provide a Passbook to every such member and maintain the same in such form and manner as the commissioner may direct from time to time :

Provided that different dates may be specified for different industries or classes of establishments or for different areas.

The contribution cards issued under this Scheme shall be
current for one year:

Provided that the said period of one year may commence and terminate at such different times, in different factories or any other establishments as may be decided by the Commissioner from time to time :

Provided further that the cards issued,-

(i) in respect of the first contribution period, or

(ii) in respect of the contribution period immediately preceding the date from which the establishment is notified as an annually posted establishment.

may be for a period which may be less or more than a year.

An employer shall, on or before the expiration of the period of currency of the contribution card, prepare in respect of each member employed by him a card in From 3 or Form 3-A as may be appropriate, for the next period of currency :

Provided that in the case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension Scheme , 1971, the aforesaid form shall also contain such particulars as are necessary to comply with the requirements of that Scheme.

Provided further that above mentioned contribution card in respect of each employee shall be prepared by the employer in electronic format also, in such form and manner as may be specified by the Commissioner.

Every employer shall within one month from the date of expiration of the period of currency of the contribution cards in respect of members employed by him, send the contribution cards to the Commissioner together with a statement in form 6 :

Provided that where a member leaves service, the employer shall send the contribution card in respect of such members before the twentieth day of the month following that in which the member left the service ;

Provided further that in case of any such employee who has become a member of the Family Pension Fund under the Employees Family Pension scheme, 1971, the aforesaid Form shall also contain such particulars as are necessary to comply with the requirements of that Scheme.

Provided also that above mentioned contribution card in respect of each employee together with statement in Form 6 shall be sent by the employer in electronic format also, in such form and manner as may be specified by the Commissioner.

The employer shall retain in his custody the contribution cards in respect of each member employed by him and shall take every precaution against loss or damage of the contribution cards.

Any member making a request in this behalf to the employer shall be permitted to inspect his cards himself or to have the same inspected by any person duly authorised by him in writing to do so,within 72 hours of making such request, provided that no such request be entertained more than once in every two calendar months.

Every employer shall,whenever, the Commissioner or any other officer authorised by him in this behalf or an Inspector so requests, either in person or by notice in writing , produce before the Commissioner, Officer or Inspector, as the case may be, the records of any member employed by him and any card then in his possession, and if so required by the said Commissioner, Officer or Inspector, shall deliver such record to the said Commissioner, Officer or Inspector, who may, if he thinks fit, retain the records provided that he shall grant a receipt for every record retained by him.

The Commissioner shall supply to employers, free of charge, on demand contribution cards, Passbooks, Declaration Form and other forms referred to in this Scheme:

Provided that if any employer desires to obtain any cards, Passbooks or forms in excess of the number which the Commissioner considers to be the requirements of the employer the Commissioner may, if he thinks fit, supply such extra cards, Passbooks or forms and make such charge therefor as he considers reasonable.

The Commissioner shall deposit the Bank draft or cheques received from the employers in the Reserve Bank or the State Bank of India in the Current Account of the Fund.

(1) A separate account shall be kept called the "Central Administration Account" for recording all administration expenses of the Fund including such administrative charges as the Fund may be authorised to levy .

(2) Omitted.

The aggregate amount received as the employer's and the employees' contribution to the Fund shall be credited to an account to be called the " Provident Fund Account".

All interest, rent and other income realised, and net profits or losses, if any,from the sale or investments not including therein the transactions of the Administration Account, shall be credited or debited, as the case may be, to an account called the '"Interest Suspense Account". Brokerage and commission on the purchase and sale of securities and other investment shall be included in the purchase or sale price , as the case may be, and not separately charged to the "Interest suspense Account".

(1) All moneys belonging to the Fund shall be deposited in the Reserve Bank or the State Bank of India or in such other scheduled bank as may be approved by the Central Government from time to time or shall be invested, subject to such directions as the Central Government may from time to time give, in the Securities mentioned or referred to in clauses (a) to (b) of Section 20 of the Indian Trusts Act, 1882 ( 2 of 1882) :

Provided that such securities are payable both in respect of capital and in respect of interest in India.

(2) All expenses incurred in respect of,and loss,if any,arising from, any investment shall be charged to the fund.

(1) Subject to the Provision of the Act and of this Scheme, the Fund, not including therein the Administration Account, shall not, except with the previous sanction of the Central Government, be expended for any purpose other than the payment of the sums standing to the credit of individual members of the Fund or to their nominees or heirs or legal representatives in accordance with the Provisions of this Scheme.

(2) The Fund shall be operated open by such officers as may be authorised in this behalf by the Central Board.

(1) All expenses relating to the administration of the Fund including those incurred on Regional Committee, shall be met from the fund.

(2) All expenses of administration of the trustees of the Central Board and salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to Provident Fund and other benefit Fund instituted for the officers and employees of the Central Board, the cost of audit of the accounts, legal expenses and cost of all stationery and forms incurred in respect of the Central Board, cost and all expenses incurred in connection with the construction of office buildings and staff quarters shall be met form the Administration Account of the Fund.

(3) The expenses incurred by the Central Government in connection with the establishment of the Fund shall be treated as a loan and such loan shall be repaid from the Administration account.

The central Board shall maintain proper accounts of its income and expenditure, including its administrative accounts, in Form 10, and the balance sheet in Form 11.The accounts shall be prepared for the financial year and the books shall be balanced on the thirty-first March each year.

(1) The accounts of the Fund, including the Administration Account, shall be audited in accordance with the instructions issued by the Central Government in consultation with the Comptroller and Auditor-General of India.

(2)The charges on account of audit shall be paid out of the Administration Account.

(1) where a member of the Fund ceases to be employed in one region and secures employment in another region in an establishment to which this Scheme applies or which is an exempted establishment or which is not covered under the Act but has a provident fund scheme of its own, he may apply to the Commissioner within whose jurisdiction he was previously employed, in such form as the Commissioner may specify, for transfer of balance of the provident fund in his existing account to his account in the other region.

(2) Where a member of the fund ceases to be employed in one establishment and secures employment in another establishment in the same region, he may apply to the Commissioner of the region, in such form as the Commissioner may specify for the transfer of balance of the Provident Fund in his previous account to his account in the new establishment where he takes up the employment .

(1) The commissioner shall place before the Central Board each year before the first fortnight of February, a budget showing separately the probable receipts from contribution and from the levy of administrative charges and the expenditure which it proposes to incur during the following financial year. The budget as approved by the Central Board shall be submitted for sanction to the Central Government within a month of its being placed before the Central Board.

(2) The Central Government may make such modifications in the budget as it considers desirable before sanctioning it.

(3) The Commissioner may, at any time during the year, make budgetary reappropriation of Fund sanctioned in the budget by the Central Government, provided that -

(i) the total amount sanctioned in the budget by the Central Government is not exceeded;
(ii) It is made only for meeting such expenses of administration as are to be met from the Administration Account in accordance with Paragraph 54; and
(iii) Every reappropriation so made shall be reported by him to the Central Board at the next meeting of such Board.

(4) The Commissioner shall place before the Central Board a supplementary budget for a financial year, giving detailed estimates and reasons, of inescapable expenditure which are likely to be incurred during the year for which no provision has been made in the sanctioned budget and which cannot be covered under the provisions of sub-paragraph(3) of Paragraph 58. The supplementary budget as approved by the Central Board shall be submitted for sanction to the Central Government within a month of its being placed before the Central Board.

(5) Any expenditure incurred by the Commissioner over and above the sanctioned budget of a financial year and not covered under the provisions of sub-paragraphs (3) and (4) of Paragraph 58 shall be reported to the Central Board at the earliest possible moment after the excess is established for its consideration and for obtaining sanction of the Central Government.

(1) An account shall be opened in the office of the Fund in the name of each member in which shall be credited :-
(a) his contributions;
(b) the contributions made by the employer in respect of him; and
(c) interest as provided in Paragraph 60.

(2) All items of account shall be calculated to the nearest rupee, 50 paise or more to be counted as the next higher rupee and fraction of a rupee less than 50 paise to be ignored.

(3) On receipt of the contribution card or cards of a member from his employer or employers at the end of the period of currency of the contribution card, the Commissioner shall compare the entries made in the contribution card or cards with those made in the member's individual account in the office of the Fund and shall rectify any discrepancy found in these entries.

(1) The Commissioner shall credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board.
(2) (a) Interest shall be credited to the members account on monthly running balances basis with effect from the last day in each year in the following manner :
(i) On the amount at the credit of a member on the last day of the preceding year, less any sums withdrawn during the current years-interest for twelve months;
(ii) On sums withdrawn during the current year-interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal;
(iii) On all the sums credited to the members account after the last day of the preceding year-interest from the first day of the month succeeding the month of credit to the end of the current year;
(iv) The total amount of interest shall be rounded to the nearest whole rupee (fifty paise counting as the next higher rupee).

(b) In the case of a claim for the refund under Paragraph 69 or 70, interest shall be payable up to the end of the month preceding the date on which the final payment is authorised irrespective of the date of receipt of the claim from the claimant concerned :

Provided that interest up to and for the current month shall be payable on the claims which are authorised on or after the 25th day of a particular month along with actual payment after the end of the current month :

Provided further that the rate if interest to be allowed on claims for refund for the broken currency period shall be the rate fixed for the financial year in which the refund is authorised.

Provided also that the rate of interest to be allowed on claims for refund for the broken currency period shall be the last declared rate on Employees Provident Fund and if the rate declared for any current year happens to be less than the previous year s declared rate, then it would accrue as bonus to the outgoing members and it shall be incorporated into calculation for deriving the current year s rate of interest at the end of the year and the claims settled under this proviso shall be final.

Explanation.- If an establishment is covered for the first time under the Act/Scheme during the course of the currency period the interest shall be allowed on all the sums credited to the members account on and from the first day of the month succeeding the month of credit to the end of the current year.

(3) The aggregate amount of interest credited to the accounts of the members shall be debited to " Interest Suspense Account".

(4) In determining the rate of interest, the Central Government shall satisfy itself that there is no overdrawal on the "Interest Suspense Account" as a result of the debit thereto of the interest credited to the account of member.

(5) Interest shall not be credited to the Account of a member if he informs the Commissioner in writing that he does not wish to receive it. If, however, the member subsequently asks for interest, it shall be credited to his account with effect from the first day of the period of currency in which he makes request therefor.

(6) Interest shall not be credited to the account of a member from the date on which it has become Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72.

(1) Each member shall make in his declaration in Form 2, a nomination conferring the right to receive the amount that may stand to his credit in the Fund in the event of his death before the amount standing to his credit has become payable, or where the amount has become payable before payment has been made.

(2) a member may in his nomination distribute the amount that may stand to his credit in the Fund amongst his nominees at his own discretion.

(3) If a member has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such member in favour of a person not belonging to his family shall be invalid:

Provided that a fresh nomination shall be made by the member on his marriage and any nomination made before such marriage shall be deemed to be invalid.

(4) If at the time of making a nomination the member has no family, the nomination may be in favour of any person or persons but if the member subsequently acquires a family, such
nomination shall forthwith be deemed to be invalid and the member shall make a fresh nomination in favour of one or more persons belonging to his family.

(4-A) Where the nomination is wholly or partly in favour of a minor, the member may, for the purposes of this Scheme, appoint a major person of his family, as defined in clause (g) of Paragraph 2, to be the guardian of the minor nominee in the event of the member predeceasing the nominee and the guardian so appointed :

Provided that where there is no major person in his family, the member may, at his discretion, appoint any other person to be a guardian of the minor nominee.

(5) A nomination made under sub-paragraph (1) may at any time be modified by a member after giving a written notice of his intention of doing so in Form 2 annexed hereto.If the nominee predeceases the member, the interest of the nominee shall revert to the member who may make a fresh nomination in respect of such interest.

(6)A nomination or its modification shall take effect to the extent that it is valid on the date on which it is received by the Commissioner.

(1) Where a manner desires that premium due on a policy of Life Insurance taken by him on his own life should be financed from his Provident Fund Account, he may apply in such from and in such manner as may be prescribed by the Commissioner.

(2) On receipt of such application the Commissioner, or,where so authorised by the Commissioner, any other officer subordinate to him may make payment on behalf of the member to the Life Insurance Corporation of India towards premium due on his policy:

Provided that no such payment shall be made unless the premium is payable yearly.

(3) Any payment made under sub-paragraph (2) shall be made out of and debited to the member's own contribution with interest thereon standing to his credit in the Fund.

(4) No payment shall be made under sub-paragraph (2) unless the member's own contribution in his Provident Fund Account with interest thereon is sufficient to pay the premium; and where the payment is to made on the first premium, sufficient to pay the premium for two years.

(5) No payment shall be made towards a policy unless it is legally assignable by the member to the Central Board.

(6) The Commissioner shall before making payment in respect of existing policies, satisfy himself by reference to the Life Insurance Corporation that no prior assignment of the policy exists and the policy is free from all encumbrances.

(7) No educational endowment policy or marriage endowment policy shall be financed from the Fund, if such policy is due for payment in whole or in part before the member attains the age of 55 years.

Where a policy of Life Insurance of member is financed from his Provident Fund account, the Commissioner may,-

(a) convert the Insurance Policy into a paid-up one when the credit in his Provident fund on account of his share becomes inadequate for the payment of any premium;

(b) Pay late fee and interest out of the member's own contribution in his Provident Fund Account, if any premium cannot be remitted to the Life Insurance Corporation in time because of delay in sending to the Commissioner the policy duly assigned to the Central Board or any other reasons for which the member or his employer may be responsible.

(1) The policy shall,within six months of the first payment under paragraph 62, be assigned by endorsement thereon, to the Central Board and shall be delivered to the Commissioner.

(2) Notice of the assignment of the policy shall be given by the member to the Life Insurance Corporation and the acknowledgment of the said notice by the Corporation shall be sent to the Commissioner with in there months of the date of assignment.

(3) The terms of the policy shall not be altered nor shall the policy be exchanged for another policy without the prior consent of the Commissioner to whom the details of the alteration or of the new policy shall be furnished in such form as he may specify.

(4) If the policy is not assigned and delivered as required under sub-paragraph (1), or is assigned otherwise than to the Central Board , or is charged or encumbered or lapses, any amount paid from then Fund in respect of such policy shall, with interest thereon at the rate provided under Paragraph 60, be repaid by the member forthwith to the Fund. In the event of default, the employer shall, on receipt of such directions as may be issued by the Commissioner in this behalf, deduct the amount in lump sum or in such instalments as the Commissioner may determine from the emoluments of the member and pay it to the Fund within such time and in such manner as may be specified by the Commissioner. The amount so repaid or recovered shall be credited to the member's account in the Fund.

So long as the policy remains assigned to the Central Board, any bonus accruing on it may be drawn by the Central Board or where authorised by the Central Board, by the Commissioner, and adjusted against the payments made on behalf of the member under Paragraph 62.

(1) Where the accumulations standing to the credit of the member are withdrawn under paragraph 69 or when the member repays to the Fund the amounts of premium paid by the Board with interest thereon at the rate provided in Paragraph 60, the Central Board or where authorised by the Central Board ,the Commissioner shall reassign by endorsement thereon the policy to the member together with a signed notice of reassignment addressed to the Life Insurance Corporation .

(2) If the member dies before the policy has been reassigned under sub-paragraph (1), the Central Board or where authorised by the Central board, the Commissioner, shall reassign by endorsement thereon, the policy to the nominee of the member if a valid nomination subsists and if there be no such nominee, to such person as may be legally entitled to receive it together with a signed notice of reassignment addressed to the Life Insurance Corporation.

If a policy matures or otherwise falls due for payment during the currency of its assignment, the Central Board or, where so authorised by the Central Board, the Commissioner, shall realise the amount assured together with bonus, if any, accrued thereon, place to the credit of the member the amount so realised, or the whole of the amount paid form the Fund in respect of the policy with interest therein, whichever is less, and refund the balance, if any,to the member.

Omitted.

Omitted.

Withdrawal from the fund for the purchase of a dwelling house/flat or for the construction of a dwelling house including the acquisition of a suitable site for the purpose.-

(1) The Commissioner, or where so authorised by the Commissioner,any officer subordinate to him may on an application from a member in such form as may be prescribed and subject to the conditions prescribed in this paragraph sanction from the amount standing to the credit of the member in the Fund, a withdrawal-

(a) for purchasing a dwelling house/flat, including a flat in a building owned jointly with others (outright or on hire purchase basis), or for constructing a dwelling house including the acquisition of a suitable site for the purpose from the Central Government, the State Government, a cooperative society, an institution, a trust , a local body or a Housing Finance Corporation (hereinafter referred to as the agency/agencies);or,

(b) for purchasing a dwelling site for the purpose of construction of dwelling house or a ready-built dwelling house/flat from any individual;

(bb)for purchasing a dwelling house/flat on ownership basis from a promoter governed by the provisions of any Flats or Apartments Ownership Act or by any other analogous or similar law of the Central Government or the State Government as may be in force in any state or area for the time being and who intends to construct or constructs a dwelling house or block of flats and the member is required to pay to the said promoter in advance for financing the said construction of the house/flat :

Provided that the member has entered into an agreement with the promoter as may be required under the Flats or Apartment Ownership Act or any other analogous or similar law of the Central Government or State Government which may be in force in any State or any area and the said agreement is registered under the Indian Registration Act, 1908;

(e) for the construction of a dwelling house on a site owned by the member or the spouse of the member or jointly by the member and the spouse or for completing/continuing the construction of a dwelling house already commenced by the member or the spouse, on such site or for purchase of a house/flat in the joint name of the member and the spouse under clauses (a) and (b) above.

Explanation 1.- In this paragraph, the expression, 'cooperative society ' means a society registered or deemed to be registered under the Cooperative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in the State relating to cooperative societies.

Explanation 2.- Omitted.

(2)(a) For the purpose of purchase of a site for construction of a house thereon, the amount of withdrawal shall not exceed the member's basic wages and dearness allowance for twenty-four months or the member's own share of contributions, together with the employer's share of contribution, with interest thereon or the actual cost towards the acquisition of the dwelling site, which ever is the least.

(b) For the purpose of acquisition of a ready-built house/flat or for construction of a house/flat, the withdrawal shall not exceed the member's basic wages and dearness allowance for thirty-six months or the member's own share of contributions, together with the employer's share of contributions, with interest thereon , or the total cost of construction, whichever is the least.

(3)(a)No withdrawal under this paragraph shall be granted unless-
(i) the member has completed five years' membership of the Fund;
(ii) the member's own share of contributions with interest thereon in the amount standing to his credit in the fund is not less than one thousand rupees;
(iii) a declaration from the member that the dwelling site or the dwelling house/flat or the house under construction is free from encumbrances and the same is under title of the member and/or the spouse:

Provided that where a dwelling site or a dwelling house/flat is mortgaged to any of the agencies referred to in clause (a) of sub-paragraph (1), solely for having obtained funds for the purchase of a dwelling house/flat or for the construction of a dwelling house including the requisition of a suitable site for the purpose, such a dwelling site or a dwelling house /flat as may be, shall not be deemed to be an encumbered property :

Provided further that a land acquired on a perpetual lease or on lease for a period of not less than 30 years for constructing a dwelling house/flat, or a house/flat built on such a leased land, shall also not be deemed to be an encumbered property :

Provided also that where the site of the dwelling house/flat is held in the name of any agency, referred to in clause (a) of sub-paragraph (1) and the allottee is precluded from transferring or otherwise disposing of the house/flat, without the prior approval of such agency, the mere fact that the allottee dose not have absolute right of ownership of the house/flat and the site is held in the name of the agency, shall not be a bar to the giving of withdrawal under clause (a) of sub-paragraph (1), if the other conditions mentioned in this paragraph are satisfied.

(b) No withdrawal shall be granted for purchasing a share in a joint property or for constructing a house on a site owned jointly except on a site owned jointly with the spouse.

(4)subject to the limitation prescribed in sub-paragraph (2)-
(a) where the withdrawal is for the purchase of a dwelling house/ flat or a dwelling site from an agency referred to in clause (a) of sub-paragraph (1), the payment of withdrawal shall not be made to the member but shall be made direct to the agency in one or more instruments as may be authorised by the member;

(b) where the withdrawal is for the construction of a dwelling house, it may be sanctioned in such number of installments as the Commissioner or where so authorised by the Commissioner, any officer subordinate to him, thinks fit;

(c) Omitted.

(d) where the withdrawal is for purchasing a dwelling house/flat on ownership basis from a promoter as referred to in clause (bb) of sub-paragraph (1), the payment of withdrawal shall be made to the member in one or more installments as may be required to be paid by the said promoter and as authorised by the member .

Explanation.-'Promoter' includes a person who constructs or causes to be constructed a block or building of flats or apartments for the purpose of selling some or all of them to other persons or to a company, Cooperative Society or other association of persons and his assignees and where the person who builds and the person who sells are different persons the term 'Promoter' includes both.

(5) Where a withdrawal is sanctioned for the construction of a dwelling house,the construction shall commence within six months of the withdrawal of the first installment and shall be completed within twelve months of the withdrawal of the final instalments. Where the withdrawal is sanctioned for the purchase of a dwelling house/flat or for the acquisition of a dwelling site, the purchase or acquisition, as the case may be, shall be completed within six months of the withdrawal of the amount :

Provided that this provision shall not be applicable in case of purchase of a dwelling house/flat on hire-purchase basis and in cases where a dwelling site is to be acquired or houses are to be constructed by a cooperative society on behalf of its members with a view of their allotment to the members.

(6) Except in the cases specified in sub-paragraph (7) and 7-A, no further withdrawal shall be admissible to a member

(1) Notwithstanding anything contained in Paragraph 68B or 68BB, where a member desires to purchase a dwelling house/flat, including a flat in a building owned jointly with others (out­right or on hire-purchase basis), or for construction of a dwelling house including the acquisition of a suitable site for the purpose, from the Central Government, a State Government, or a Housing Agency under a Housing Scheme as notified by the Cen­tral Provident Fund Commissioner from time to time, may apply in such form and in such manner, as may be prescribed by the Commissioner, for withdrawal from the amount standing to the credit of the member in the Fund, and the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, on receipt of such application may sanction such amount not exceeding the members own share of contributions with interest thereon (and the employers share of contributions with interest thereon to his credit) or the cost of the acquisition of the proposed property whichever is less by debiting to the members account :

Provided that no withdrawal under this paragraph shall be granted unless—

(i) the member has completed five years membership of the Fund; and

(ii) the share of contributions with interest thereon in the amount standing to the credit in the Fund of the member/or together with the spouse who is also a member, is not less than twenty thousand rupees :

Provided further that the Commissioner may, on sufficient grounds being shown through an application from a member in this regard, reduce the period as stipulated in (i) above to three years for withdrawal from the amount standing to the credit of the member in the Fund, for the repayment, wholly or partly, of any outstanding principal and/or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse from any Government or a Housing Agency under Housing Scheme so notified, solely for the purposes specified in this proviso and the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, on receipt of such application may sanction such amount not exceeding the member’s own share of contributions with interest thereon along with the employers share of contributions with interest thereon, or the amount requested by the member or the outstanding balance in the loan account, whichever is less, by debiting to the members account :

Provided also that, where a member desires that monthly instalments for the repayment, wholly or partly, of any outstanding principal and/or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse, solely for the purposes specified in this proviso, may be paid from the amount standing to the credit of the member in the Fund, he may apply in such form and in such manner, as may be prescribed by the Commissioner and on receipt of such an application, the Commissioner or where so authorized by the Commissioner, any other officer subordinate to him may make payment by the 15th of each month on behalf of the member to the Government or a Housing Agency concerned, as the case may be :

Provided also that when the membership of the member ceases to exist, or, where the amount standing in the credit of the member’s account is not sufficient to pay the monthly instalment for any month, the Commissioner or where so authorized by the Commissioner any other officer subordinate to him shall not be liable to pay the monthly instalment or any late fee and/or interest, if any monthly instalment could not be remitted in time.

(2) The withdrawal or finance for the purchase of a dwelling house/flat or a dwelling site or construction of a dwelling house, under sub-paragraph (1) and proviso thereunder, shall not be made to the member in any event and shall be made direct to the Government or Housing Agency concerned only, as the case may be, in one or more instalments, as may be authorized by the member.

(3) No further withdrawal under this sub-paragraph (1) above shall be admissible to a member unless he has discharged his liability towards the existing loan.

(4)(a) If the withdrawal or finance granted under this paragraph exceeds the amount actually spent for the purpose for which it was sanctioned, the excess amount shall be refunded by the member to the Fund in one lump sum within thirty days of the finalisation of the purchase, or the completion of the construction of, or necessary additions or alterations to a dwelling house/flat, as the case may be.

(b) The amount so refunded under sub-paragraph (a) shall be credited to the employer’s share of contributions in the members account in the Fund to the extent of withdrawal granted out of the said share and the balance, if any, shall be credited to the member’s share of contributions in his account.

(c) In the event of the member not having been allotted a dwelling site/dwelling house/flat or in the event of the cancellation of an allotment made to the member by the Government or the Housing Agency, referred to in sub-paragraph (1) above, then the Government or the said Housing Agency, to which the amount so withdrawn has been given shall be liable to refund the amount to the Fund in one lump sum in such manner as may be specified by the Commissioner, within a period not exceeding fifteen days from the date of such cancellation or non-allotment.

(d) The amount so refunded under clause (c) shall be credited to the employer’s share of contributions in the members account in the Fund, to the extent of withdrawal granted out of the said share, and the balance, if any, shall be credited to members own share of contributions in his account.

(5) The Commissioner or where so authorized by the Commissioner any officer subordinate to him has reason to believe that the amount remitted to the Housing Agency under the Housing Scheme under this paragraph has been misutilized and will not be refund­ed, he shall forthwith take steps to recover the amount due with interest including penal interest thereon at the rate to be notified by the Commissioner from time to time and the amount so recovered shall be credited to member’s account in the Fund to the extent of withdrawal granted out of the said account and interest thereon and the remaining amount, if any shall be cred­ited to Administrative Account.

(6) The Commissioner may notify such Housing Agency be debarred from participation in the Housing Scheme.

(1) (a) The Commissioner, or where so authorised by the Commissioner, any officer subordinate to him, may on an application from a member, sanction from the amount standing to the credit of the member in the Fund,withdrawal for the repayment, wholly or partly, of any outstanding principal and interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse from a State Government, Cooperative Society, Housing Board, Nationalised Banks, Public Financial Institutions, Municipal Corporation or a body similar to the Delhi Development Authority solely for the purposes specified in sub-paragraph (i) of Paragraph 68-B.

(b) The amount of withdrawal shall not exceed the member's basic wages and dearness allowance for thirty-six months or his own share of contributions together with the employer's share of contributions, with interest thereon, in the member's account in the Fund or the amount of outstanding principal and interest of the said loan, which ever is least.

(2) No withdrawal shall be sanctioned under this paragraph unless-

(a) the member has completed ten years membership of the Fund, and
(b) the member's own share of contribution, with interest thereon, in the amount standing to his credit in the Fund, is one thousand rupees or more; and
(c) the member produces a certificate or such other documents, as may be prescribed by the Commissioner, or where so authorised by the Commissioner , any officer subordinate to him , from such agency, indicating the particulars of the members, the loan granted, the outstanding principal and interest of the loan and such other particulars as may be required.

(3) The payment of the withdrawal under this paragraph shall be made direct to such agency on receipt of an authorisation from the member in such manner as may be specified by the Commissioner, or where so authorised by the Commissioner, any officer subordinate to him,and in no event the payment shall be made to the member.

Omitted.

Omitted.

In computing the period of membership of the Fund of a member under Paragraphs 63-B, 68-BB and 68-K, his total service exclusive of periods of breaks under the same employer of factory/establishment before this scheme applied to him, as well as the periods of his membership, whether of the Fund or of private provident Fund of exempted factories/establishments or as an employee exempted under Paragraph 27 or 27-A as the case may be, immediately preceding the current membership of the Fund , shall be included :

Provided that the member has not severed his membership by withdrawal of his provident fund during such period .

Omitted.

Omitted.

(1) In case a factory or other establishment has been locked up or closed down for more than fifteen days and its employees are rendered unemployed without any compensation or in case an employee does not receive his wages for a continuous period of two months or more , these being for reasons other than a strike, the Commissioner or where so authorised by the Commissioner, any officer subordinate to him may on an application from an employee, who is a member of the Fund, in such form as may be prescribed, authorise payment to him,of one or more non-recoverable advances from his provident fund account not exceeding his own total contributions including interest thereon up to date the payment has been authorised.

(1-A) In case a provident fund member is discharged or dismissed or retrenched by the employer and such discharge or dismissal or retrenchment is challenged by the member and the cases are pending in a court of law, an officer not below the rank of Assistant Provident fund Commissioner may, on an application from the member in such form as may be prescribed, authorise payment to him of one or more non-recoverable advances from his Provident Fund Account not exceeding fifty per cent of his own share of contribution with interest thereon standing to his credit in the Fund on the date of such authorisation.

(2)(a) In case the factory or other establishment continues to remain locked up or closed down for more than six months, the Commissioner , or where so authorised by the Commissioner any officer subordinate to him, on being satisfied that a member who has already been granted one or more non-recoverable advances from his provident fund account under sub-paragraph (1) still continues to be unemployed and no compensation is likely to be paid to him at an early date, may, on receipt of an application therefor in such form as may be prescribed in this behalf, authorise payment to the member of one or more recoverable advances from his provident fund account up to the extent of 100% of the employers' total contribution including interest thereon up to date on which the payment has been authorised:

Provided that if the factory or establishment in which the member is employed remains closed for more than five years for reasons other than strike, recoverable advance may be converted into non-recoverable advance on receipt of a request in writing from the member concerned.

(b)The advance granted under clause (a) shall be interest-free.
(c) The advance granted under clause (a) shall be recovered by deductions from the wages of the member in such instalments subject to a maximum of thirty-six instalments as may be determined by the Commissioner or where so authorised by the Commissioner, any officer subordinate to him.The recovery shall
commence from the first wages paid to the member immediately after the re-start of the factory or establishment.

(d) The employer shall remit the amount so deducted to the Fund within such time in such manner as may be specified by the Commissioner or where so authorised by the Commissioner, any officer subordinate to him. The amount on receipt shall be credited to the member's account in the Fund.

Explanation.- For the purpose of grant of advance under this paragraph, the establishment, may be closed legally, illegally, with permission or without permission, so long as the establishment is closed.

Omitted.

(1) A member may be allowed non-refundable advance from his account in the fund in case of-
(a) hospitalisation lasting for one month or more, or
(b) major surgical operation in a hospital, or
(c) suffering from T.B. , leprosy,paralysis,cancer, mental derangement or heart ailment and having been granted leave by his employer for treatment of the said illness.

(2) The advance shall be granted if-
(a) The employer certifies that the Employees' State Insurance Scheme facility and benefits thereunder are not actually available to the member or the member produces a certificate from the Employees' State Insurance Corporation to the effect that he has ceased to be eligible for cash benefits under the Employee' State Insurance Scheme; and
(b) A doctor of hospital certifies that a surgical operation or, as the case may be, hospitalisation for one month or more had or has become necessary or a registered medical practitioner, or in the case of mental derangement or heart ailment, a specialist, certifies that the member is suffering from T. B , leprosy, paralysis, cancer, mental derangement or heart ailment.

(3) A member may be allowed non-refundable advance from his account in the fund for the treatment of a member of his family who has been hospitalised, or requires hospitalisation, for one month or more-
(a) for a major surgical operation, or
(b) for the treatment of T.B. , leprosy, paralysis, cancer, mental derangement or heart ailment:

Provided that no such advance shall be granted to a member unless he has produced-
(i) a certificate from a doctor of the hospital that the patient has been hospitalised or requires hospitalisation for one month or more, or that a major surgical operation had or has become necessary, and
(ii) a certificate from his employer that the employees' State Insurance Scheme facility and benefits are not available to him for the treatment of the patient.

(4) The amount advanced under this paragraph shall not exceed the member's basic wages and dearness allowance for six months or his own share of contribution with interest in the Fund, whichever is less.

(5) Deleted.

(6) Where the Commissioner or, where so authorised by the Commissioner any officer subordinate to him is not satisfied with a medical certificate furnished by the member under this paragraph ,he may, before granting an advance under this paragraph ,demand from the member another medical certificate to his satisfaction.

The Commissioner or where so authorised by the Commissioner an officer subordinate to him may, on an application from a member, authorise payment to him or her of a non-refundable advance from his or her provident fund account not exceeding fifty per cent of his or her own share of contribution with interest thereon, standing to his or her credit in the Fund, on the date of such authorisation, for his or her own marriage, the marriage of his or her daughter, son, sister or brother or for the post-matriculation education of his or her son or daughter.

(2) No advance under this paragraph shall be sanctioned to a member unless-
(a) he has completed seven years' membership of the Fund;and
(c) the amount of his own share of contributions with interest thereon standing to his credit in the Fund is rupees one thousand or more .

(3) Not more than three advances shall be admissible to a member under this paragraph.

(4) Omitted.

(1) The Commissioner or where so authorised by the Commissioner, any officer subordinate to him may, on an application from a member whose property, moveable or immovable,has been damaged by a calamity of exceptional nature, such as floods, earthquakes or riots, authorise payment to him from the provident fund account, of a non-refundable advance, of rupees five thousand or fifty per cent of his own total contributions including interest thereon standing to his credit on the date of such authorisation, whichever is less, to meet any unforeseen expenditure.

(2) No advance under sub-paragraph (1) shall be paid unless-
(i) the State Government has declared that the calamity has affected the general public in the area ;
(ii) the member produces a certificate from an appropriate authority to the effect that his property (moveable or immovable) has been damaged as a result of the calamity ;and
(iii) the application for advance is made within period of 4 months from the date of declaration referred to in sub-para (i).

A member may be allowed a non-refundable advance from his account in the Fund, if there is a cut in the supply of electricity to a factory or establishment in which he is employed on the following conditions,namely:-

(a) The advance may be granted only to a member whose total wages for any one month commencing from the month of January, 1973 were three-fourths or less than three-fourths of wages for a month.
(b)The advance shall be restricted to the amount of wages for a month or Rs 300 or the amount standing to the credit of the member in the Fund as his own share of contribution with interest thereon, whichever is less.
(c) No advance shall be paid unless the State Government certify that the cut in the supply of electricity was enforced in the area in which the factory or establishment is located and the employer certifies that the fall in the member's pay was due to cut in the supply of electricity.
(d) Only one advance shall be admissible under this paragraph.

Explanation.-"Wages" means, for the purpose of this paragraph, basic wages and dearness allowance excluding lay-off compensation, if any.

(1) A member, who is physically handicapped, may be allowed a non-refundable advance from his account in the Fund, for purchasing an equipment required to minimise the hardship on account of handicap.

(2) No advance under sub-paragraph (1) shall be paid unless the member produces a medical certificate from a competent medical practitioner to the satisfaction of the commissioner or such other officer as may be authorised by him in this behalf to the effect that he is physically handicapped.

(3) The amount advanced under this paragraph shall not exceed the member's basic wages and dearness allowance for six months or his own share of contributions with interest thereon or the cost of the equipment, whichever is the least.

(4) No second advance under this paragraph shall be allowed within a period of three years from the date of payment of an advance allowed under this paragraph.

The Commissioner, or whoever so authorised by the Commissioner, any officer subordinate to him, may,on an application from a member in such form as may be prescribed, permit withdrawal of up to 90 per cent of the amount standing at his credit, at any time after attainment of the age of 57 years by the member of within one year before his actual retirement on superannuation whichever is later.

The Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, may, on an application from a member in such form as may be prescribed, permit withdrawal of upto 90 per cent of the amount standing at his credit at any time after attaining the age of 55 years by the member, to be transferred to the Life Insurance Corporation of India for investment in Varishtha Pension Bima Yojana

The payment of withdrawal or advance under Paragraphs 68-B, 68-H, 68-J, 68-K, 68-L, 68-M ,68-N, 68-NN, 68-NNN and 68-NNNN of the Scheme may be made, at the option of the member-

(i) by postal money order, or

(ii) by deposit in the payees bank account in any Scheduled Bank or in Co-operative Bank (including the Urban Cooperative Bank) or any post office, or

(iii)through the employer.

(1) The Central Board, or where so authorised by the Central Board, the Commissioner, or any officer subordinate to
him, may, on an application made by a member in such form as may be specified, authorise payment to him from his
provident fund account not exceeding his own total contribution including interest thereon up to the date the payment has
been authorised on ceasing to be an employee in any establishment to which the Act applies.
(2) The member making an application for withdrawal under sub- paragraph (1) shall not be employed in any factory or
other establishment, to which the Act applies, for a continuous period of not less than two months immediately preceding
the date on which such application is made :
Provided that the requirement of two months’ period referred to in sub-paragraph (2) shall not apply in cases of
female members resigning from the services of the establishment for the purpose of getting married or on account of
pregnancy or child birth.

(1) a member may withdraw the full amount standing to his credit in the Fund-

(a) On retirement from service after attaining the age of 58 years :
Provided that a member, who has not attained the age of 58 years at the time of termination of his service, shall also be entitled to withdraw the full amount standing to his credit in the Fund if he attains the age of 58 years before the payment is authorised;
(b) on retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment;
(c) immediately before migration from India for permanent settlement abroad or for taking employment abroad;
(d) on termination of service in the case of mass or individual retrenchment:
(dd) on termination of service under a voluntary scheme of retirement framed by the employer and the employees under a mutual agreement specifying, inter alia, that notwithstanding the provisions contained in subclause (a) of clause (oo) of Section 2 of the Industrial Disputes Act, 1947, excluding voluntary retirements from the scope of definition of "retrenchments" such voluntary retirements shall for the purpose be treated as retrenchments by mutual consent of the parties;

(e)Omitted

(f) Omitted.

(1-A) For the purpose of clause (b) of sub-paragraph (1)-
(i) where an establishment has been closed, the certificate of any registered medical practitioner may be accepted;
(ii) where there is no medical officer in the establishment, the employer shall designate a registered medical practitioner stationed in the vicinity of the establishment; or
(iii) where the establishment is covered by the Employees State Insurance Scheme, medical certificate from a medical officer of the Employees State Insurance Dispensary with which or from the Insurance Medical Practitioner with whom, the employee is registered under that Scheme, shall be produced :
Provided that where by mutual agreement of employers and employees, a Medical Board exists for any establishment or a group of establishments, a certificate issued by such Medical Board may also be accepted for the purpose of this paragraph:

Provided further that it shall be open to the Regional Commissioner to demand from the member a fresh certificate from a Civil surgeon or any doctor acting on his behalf where the original certificate produced by him gives rise to suspicion regarding its genuineness :

Provided further the entire fee of the Civil Surgeon or any doctor acting in his behalf shall be paid from the Fund in case the findings of the Civil Surgeon or any doctor acting on his behalf agree with the original certificate and that where such findings do not agree with the original certificate, only half of the fee shall be paid from the Fund and the remaining half shall be debited to the members account;

(iv) a member suffering form tuberculosis or leprosy or cancer, even if contracted after leaving the service of an establishment on ground of illness but before payment has been authorised, shall be deemed to have been permanently and totally incapacitated for work.

(2) Omitted
(3) Omitted.
(4) Deleted.

(5) Omitted

(6) Omitted.

On the death of a member before the amount standing to his credit has become payable or where the amount has become payable before payment has been made-
(i) if a nomination made by the member in accordance with Paragraph 61 subsists, the amount standing to his credit in the Fund of that part thereof to which the nomination relates, shall become payable to his nominee or nominees in accordance with such nomination ; or
(ii) If no nomination subsists or if the nomination relates only to a part of the amount standing to his credit in the Fund, the whole amount or the part thereof to which the nominations does not relate, as the case may be, shall become payable to the members of his family in equal shares:

Provided that no share shall be payable to-

(a) sons who have attained majority ;
(b) sons of a deceased son who have attained majority ;
(c) married daughters whose husbands are alive ;
(d) married daughters of a deceased son whose husbands are alive; if there is any members of the family other than those specified in clauses (a), (b), (c) and (d) :

Provided further that the widow or widows, and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the member and had not attained the age of majority at the time of the member's death.

(iii) in any case, to which the provisions of clauses (i) and (ii) do not apply the whole amount shall be payable to the person legally entitled to it.

Explanation.-For the purpose of this paragraph a member's posthumous child, if born alive, shall be treated in the same way a surviving child born before the member's death.

(1) If a person, who in the event of the death of a member of the fund is eligible to receive provident fund accumulations of the deceased member under Paragraph 70, is charged with the offence of murdering the member or abetting in the commission of such an offence, his claim to receive the share of provident fund shall remain suspended till the conclusion of the criminal proceedings initiated against him for such offence.

(2) If on the conclusion of the criminal proceedings referred to in sub-paragraph (1),the person concerned is,-

(a) convicted for the murder or abetting the murder of the member, he shall be debarred from receiving the share of provident fund accumulations,which shall be payable to other eligible members, if any, of the deceased member; or

(b) acquitted of the murdering or abetting the murder of the member, his share of provident fund shall be payable to him.

Omitted.

(1)when the amount standing to the credit of a member,becomes payable, it shall be the duty of the Commissioner to make prompt payment as provided in this Scheme. In case there is no nominee in accordance with this Scheme or there is no person entitled to receive such amount under sub-paragraph (ii) of Paragraph 70 the Commissioner may, if the amount to the credit of the Fund does not exceed Rs 10,000 and if satisfied after inquiry about the title of the claimant, pay such amount to the claimant.

(2) If any portion of the amount, which has become payable, is in dispute or doubt, the commissioner shall make prompt payment of that portions of the amount in regard to which there is no dispute or doubt, the balance being adjusted as soon as may be possible.

(3) If the person to whom any amount is to be paid under this Scheme is minor for whose estate a guardian under the Guardians and Wards Act, 1890 (8 of 1890) has been appointed, the payment shall be made to such guardian. Where no guardian under the Guardians and Wards Act, 1890 (8 of 1890) has been appointed, the payment shall be made to the guardian, if any, appointed under sub-paragraph (4-A) of Paragraph 61. Where no guardian under the Guardians and Wards act, 1890 (8 of 1890), or under sub-paragraph (4-A) of Paragraph 61 has been appointed, the payment shall be made to the natural guardian and in the absence of a natural guardian, to such person as the commissioner, where the amount does not exceed Rs 20,000 or the Chairman of the Central board, if the amount exceeds Rs 20,000 considers to be the proper person representing the minor and the receipt of such person for the amount paid shall be a sufficient discharge thereof.

(3-A) If the person to whom any amount is to be paid under this Scheme is a lunatic for whose estate a manager under the Indian Lunacy act, 1912 (4 of 1912), has been appointed, the payment shall be made to such manager. If no such manager has been appointed, the payment shall be made to the natural guardian of the lunatic and in the absence of any such natural guardian, to such person as the Commissioner where the amount does not exceed Rs 20,000 or the Chairman of the Central Board, if the amount exceeds Rs 20,000 considers to be the proper person representing the lunatic and the receipt of such person for the amount paid shall be a sufficient discharge thereof .

(4) If it is brought to the notice of the Commissioner that a posthumous child is to be born to the deceased member he shall retain the amount which will be due to the child in the event of its being born alive and distribute the balance. If subsequently no child is born or the child is still-born, the amount retained shall be distributed in accordance with the provisions of Paragraph 70.

(5) (a) Every employer shall, at the time when a member of the Fund leaves the service, be required to get the claim application, for payment of Provident Fund in cases specified in clauses (a) to (dd) of sub-paragraph (1), of Paragraph 69, duly filled in and attested and to forward the said application within five days of its receipt to the Commissioner or any other officer authorised by him in this behalf.

(b) Every employer shall, at the time when the member of the fund leaves the service, be required to get the claim application, for payment of provident fund in cases specified in clauses (e) of sub-paragraph (1), and in sub-paragraph (2) of paragraph 69, duly filled in and attested, and to give the said application to the member, for submission, on completion of the period specified in sub-paragraph (2) of Paragraph 69, provided the member continues to remain unemployed in a factory or other establishment to which the Act applies,either through post or in person with proper identification, to the Commissioner or any other officer authorised by him in this behalf.

(c) Every employer shall, on the death of the member and on receipt of an application for receiving the amount standing to the credit of such member, forward forthwith,but not later than five days of its receipt,the said application to the Commissioner or any other officer authorised by him in this behalf.

(d) If the applicant is unable to send the claim application through the employer or duly attested by him, for any reason whatsoever, he may forward it to the Commissioner or any other officer authorised by him in this behalf, and wherever necessary, the Commissioner or any other officer authorised by him in this behalf, may forward such application to the employer and the employer shall be required to return it within five days of its receipt.

(e) The Payment may be made, in the option of the person to whom payment is to be made, (i) by postal money order, or (ii) by deposit in the payees bank account in any Scheduled Bank or any Cooperative Bank (including the urban cooperative banks) or any post office, or (iii) by deposit in the payees name the whole or part of the amount in the form of annuity term deposits scheme in any Nationalised Bank, or (iv) through the employer :

Provided that where the provided fund amount payable by postal money order shall be to the extent of maximum Rs 2000. Any payment of benefit above Rs 2000 under the scheme shall be remitted by cheque only. Where the amount payable by postal money order exceeds Rs 500, it shall be remitted at the cost of the payee.

(f) Every employer shall, at the time when an employee joins the service, be required to get the application for transfer of provident fund in cases specified in sub-paragraphs (1) and (2) of paragraph 57 duly filled in and attested, and, to forward the said application within five days of its receipt to the Commissioner or any other officer authorised by him in this behalf.

(6) Any amount becoming due to a member as a result of :
(i) supplementary contribution from the employer in respect of leave wages/arrears of pay, instalment or arrear contribution received in respect of a member whose claim has been settled on account but which could not be remitted for want of latest address, or (ii) accumulation in respect of any member who has either ceased to be employed or died, but no application for withdrawal under paragraph 69 or 70 or transfer, as the case may be has been preferred within a period of thirty six months from the date it becomes payable, or if any amount remitted to a person, is received back undelivered, and it is not claimed again within period of thirty six months from the date it becomes payable shall be transferred to an account to be called the Unclaimed Deposits Account:

Provided that in the case of a claim for the payment of said balance, the amount shall be paid by debiting the Unclaimed Deposits Account.

(7) The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within 30 days from the date of its receipt by the Commissioner. If there is any deficiency in the claim, the same shall be recorded in writing and communicated to the applicant within 30 days from the date of receipt of such application. In case the Commissioner fails without sufficient cause to settle a claim complete in all respects within 30 days, the Commissioner shall be liable for the delay beyond the said period and penal interest at the rate of 12% per annum may be charged on the benefit amount and the same may be deducted from the salary of the Commissioner .

Para 81 : Special provisions in the case of Cine- Workers

The Scheme shall,in its application to Cine Workers as defined in clause (c)of Section 2 of the Cine workers and Cinema Theatre workers (Regulation of Employment) Act,1981 (50 of 1981),be subject to the following modification, namely :-

(1) In Chapters I to IX,references to 'industry' and 'employees' shall be construed as references to 'film production' and
'Cine- workers', respectively;

(2) for sub-paragraph (f) of Paragraph 2, the following sub-paragraph shall be substituted, namely.-

(f)'excluded employees' means,-
(i) a cine-worker, who having been a member of the fund, has withdrawn the full amount of his accumulations in the Fund under clause (a) or clause (c) of sub-paragraph (1) of paragraph 69;
(ii) a 'cine-worker', whose wages at the time he is otherwise entitled to become a member of the Fund exceeds one thousand and six hundred rupees per month and where such remuneration is by way of a lump sum exceeding fifteen thousand rupees.

Explanation .- 'Wages' means "wages as defined in clause (k) of Section 2 of the Cine-Workers and Cinema Theatre Workers (Regulation of Employment)Act,1981 (50 of 1981)" ;

(3) For Paragraph 26, the following paragraph shall be substituted, namely:-

26.Class of employees entitled and required to join the fund -
(1) (a) Every cine-worker to whom Scheme applies, other than an excluded employee, shall be entitled and required to become a member of the fund from the beginning of the month following that in which this paragraph comes into force, if on the date of such coming into force he had worked in not less than three feature films with one or more producers.
Explanation.- 'Feature film' means feature film as defined in clause (f) of Section 2 of the Cine- Workers and Cinema Theatre workers (Regulation of Employment) Act, 1981 (50 of 1981).
(b) Every cine- worker employed to do any work, in or in relation to any feature film in a production unit to which this Scheme applies, other than an excluded employee, shall be entitled and required to become a member of the Fund from the beginning of the month following that in which this paragraph comes into force in such film production unit, if on the date of such coming into force, such employee is a subscriber to a Provident Fund maintained in respect of the establishment or in respect of another establishment under the same employer.
(2) Where the Scheme applies to a film production unit on the expiry or cancellation of an order of exemption under Section 17 of the Act, every cine-worker who, but for the exemption would have become and continued as a member of the Fund shall become a member of the fund forthwith.
(3) After this paragraph comes into force in a film production unit, every cine-worker thereof, other than an excluded employee, who has not become a member already shall also be entitled and required to become a member from the beginning of the month following that in which he completes work in three feature films in that production unit or in another such unit (to which the Act applies) under the same producer or partly in one and partly in the other.
(4) An excluded employee referred to in clause (ii) of Paragraph 2(f), of a film production unit to which this Scheme applies shall,on ceasing to be such an employee, be entitled and required to become a member of the fund from the beginning of the month following that on which he ceases to be such employee, provided that on the date on which he ceases to be an excluded employee, he had worked in not less than three feature films in that production unit to which the Act applies under the same producer or party in one and party in the other .
(5) On re-election of a class of cine-workers exempted under Paragraph 27-A to join the Fund or on the expiry or cancellation of an order under that paragraph, every Cine-worker, who but for such exemption would have become and continued as a member of the fund, shall forthwith become a member thereof.
(6) Every cine-worker who is a member of a private Provident Fund maintained in respect of an exempted film production unit and who, but for the exemption, would have become and continued as a member of the Fund shall, on joining a film production unit to which Scheme applies, become a member of the Fund forthwith.
(7) Notwithstanding the other provision of this paragraph, a Commissioner may, on a joint request in writing of any cine-worker of a film production unit to which this Scheme applies and his producer, enroll such cine-worker as a member who shall, thereafter, be entitled to the benefits and shall be subject to the conditions of the Fund :
Provided that the producer gives an undertaking, in writing , that he shall pay the administrative charges payable and comply with all statutory provisions of the Act and this Scheme in respect of such cine-worker.

26-A. Retention of membership.-A member of the Fund shall continue to be a member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a Notification of exemption under Section 17 of the Act or an order of exemption under Paragraph 27 or 27-A.
Explanation.-In the case of claim for refund by a member under sub-paragraph (2) of Paragraph 69, the membership of the fund shall be deemed to have been terminated from the date the payment is authorised to him by the authority specified in this behalf by the Commissioner irrespective of the date of claim.

26-B. Resolution of doubts.-If any question arises as to whether a cine-worker is entitled or required to become or continue as member, or as to the date from which he is entitled or required to become a member, the decision thereon of the Regional Commissioner shall be final :

Provided that no decision shall be given unless both the film producer and the cine-worker have been given an opportunity of being heard.



Para 82 : Special Provisions in respect of certain employees

The Scheme shall, in its application to an employee who is a person with disability under the Persons with Disabilities (Equal Opportunities, Protection of Right and Full Participation) Act, 1995 (1 of 1996) and under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) respectively, be subject to the following modifications, namely;—

(1) For clause (f) of Paragraph 2, the following clause hall be substituted, namely;-—

*(f) "excluded employee" means-
(i) a person with disability, who having been a member of the Fund has withdrawn the full amount of his accumulations in the Fund under clause (a) or clause (c) of sub-paragraph (1) of Paragraph 2 69;
(ii) a person with disability, whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds twenty—five thousand rupees per month.
(iii) an apprentice.".

(2) In Paragraph 30, after sub-paragraph (3), the following proviso shall be inserted, namely:-
"Provided that the Central Government shall contribute the employer’s share of contribution up to a maximum period of three years from the date of commencement of membership of the Fund, in respect of an employee who is a person with disability, employed directly by the principal employer or through a contractor.".
“Provided that the particulars of disabled employees shall be sent by employer in electronic format also, in such form and manner as may be specified by the Commissioner.”

(3) ln Paragraph 34, after the first proviso, the following proviso shall be inserted, namely:-—
"Provided further that in the case of any such employee who is a person with disability, the aforesaid Declaration Form shall further contain such particulars as are necessary for such employees.".

(4) In Paragraph 36, after sub-paragraph (1), the following sub-paragraph shall be inserted, namely-
"(1-A) Every employer shall send to the Commissioner, within fifteen days of every month commencing from the lst day of April, 2008, in such form as the Commissioner may specify, the particulars as are necessary, of an employee who is a person with disability and is a member on or entitled to become a member after the lst day of April, 2008.".

(5) In Paragraph 38, in sub-paragraph (1), after the second proviso, the following proviso shall be inserted, namely:-
"Provided also that the Central Government shall pay the employer’s share of contribution in respect of an employee who is a person with disability, up to a maximum period of three years from the date of commencement of membership of the Fund.

Para 83 : Special Provisions in respect of International Workers

Special provision in respect of International Workers.-The Scheme shall, in its application to International Workers as defined in this paragraph, be subject to the following modifications, namely-

(1) For clause (f) of Paragraph 2, the following clause shall be substituted, namely-

(f) "excluded employee" means, -

(i) an International worker, who is contributing to a social security programme of his country of origin, wither as a citizen or resident, with whom India has entered into a social security agreement on reciprocity basis and enjoying the status of detached worker for the period and terms, as specified in such an agreement, or

(ii) An International worker, who is contributing to a social security programme of his country of origin, either as a citizen or resident, with whom India has entered into bilateral comprehensive economic agreement containing a clause  on social security prior to 1st October 2008, which specifically exempts natural persons of either country to contribute to the social security fund of the host country.

(2) After clause (j) of Paragraph 2, the following clause shall be substituted, namely-

(ja) "International Worker" means,-

(a) an Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under I a social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement;

(b) an employee other than an Indian employee, holding other than an Indian passport, working for an establishment in India to which the Act applies;

(3) For Paragraphs 26, 26-A and 26-B, the following paragraphs shall be substituted, namely-

"26. Class of International Workers entitled and required to join the Fund.-(1)`(a) Every International Worker (other than an excluded employee), employed as on lst day of October, 2008, in an establishment to which this Scheme applies, shall be entitled and required to become a member of the Fund with effect from the lst day of November, 2008.

(2) Every International Worker (other than an excluded employee), employed after the lst day of October, 2008 in an establishment to which this Scheme applies, who has not become a member already shall be entitled and required to become a member of the Fund from the date of his joining the establishment.

 (3) Where the Scheme applies to an establishment on the expiry or cancellation of an order of exemption under Section 17 of the Act, every International Worker who, but for the exemption would have become and continued as a member of the Fund shall become a member of the Fund forthwith.

(4) An excluded employee of an establishment to which this scheme applies shall, on ceasing to be such an employee, be entitled and required to become a member of the Fund from the date he ceases to be such employee.

(5) On re—election of a class of International Workers exempted under Paragraph 27-A to join the Fund or on the expiry or cancellation of an V order under that paragraph, every International Worker, who but for such exemption would have become and continued as a member of the Fund, shall forthwith become a member thereof.

(6) Every International Worker who is a member of a private provident fund maintained in respect of an exempted establishment and who, but for the exemption, would have become and continued as a member of the Fund shall, on joining an establishment to which this Scheme applies, become a member of the Fund forthwith.

26-A. Retention 0f membership.—A member of the Fund shall continue to be a member until he withdraws under Paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under Section 17 of the Act or an order of exemption under Paragraph 27 or 27-A or the benefits are settled in terms of the relevant provisions under the social security agreement entered into between India and his country of origin.

26-B. Resolution of doubts.——If any question arises as towhether an International Worker is entitled or required to become or continue as member, or as to the date from which he is entitled or required to become a member, the decision thereon of the Regional Commissioner shall be final:

Provided that no decision shall be given unless both the employer and the International Worker have been given an opportunity of being heard.".

(4) In Paragraph 29, in sub-paragraph (1), after the points, the following proviso shall be inserted, namely-

"Provided further that where wages are paid in a currency other than in the Indian Rupee, the rate of conversion of that currency shall be the ‘telegraphic transfer buying rate offered by the State Bank of India established under the State Bank of India Act, 1955 (23 of 1955) for buying such currency on the last working of the month for which the wages are due.”.

(5) For Paragraph 36, the following paragraph shall be substituted, namely——

"36. Duties of employer.—(l) Every employer of an establishment to which this Scheme applies shall send to the Commissioner within fifteen days from the application of the Scheme to such establishment, a consolidated return in such form as the Commissioner may specify, of the International Workers (indicating distinctly the nationality of each and every International Worker) required or entitled to become members of the Fund showing the basic wage, retaining allowance (if any) and dearness allowance including the cashvalue of any food concession paid to each of such International Worker:

Provided that if there is no International Worker who is required or entitled to become a member of the Fund, the employer shall send a ‘NIL’ return.

(2) Every employer shall send to the Commissioner, within fifteen days of the close of each month, a return-

(a) in Form 5 of the International Workers qualifying to become members of the Fund for the first time during the preceding month together with the declarations in Form 2 furnished by such qualifying International Workers (indicating distinctly the nationality of each and every International Worker), and

(b) in such form as the Commissioner may specify, of the International Workers (indicating distinctly the nationality of each and every International Worker) leaving service of the employer during the preceding month: ,

Provided that if there is no International Worker qualifying to become a member of the Fund for the first time or there is no International Worker leaving service of the employer during the preceding month, the employer shall send a ‘NIL’ return.".

Provided further that a copy of the forms as mentioned in clauses (a) and (b) above shall be provided by the employer to concerned employees immediately after joining the service or at the time of leaving the service, as the case may be.

(6) For Paragraph 69, the following paragraph shall be substituted, namely-

“69. Circumstances in which accumulations in the Fund are payable to an International Worker.-(l) An Intemational Worker may withdraw the full amount standing to his credit in the Fund-

(a) on retirement from service in the establishment at any time after the attainment of 58 years;

(b) on retirement on account of permanent and total incapacity for  work due to bodily or mental infirmity duly certified by the medical officer of the establishment, or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment:

Provided that-

(i) where an establishment has been closed, the certificate of an