Section 6
Section 6 of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Subs. by Act 46 of 1960, s. 2, for "fifty" (w.e.f.
Subs. by Act 46 of 1960, s. 2, for "fifty" (w.e.f. 31-12-1960).
Section 6, The Employees Provident Funds and Miscellaneous Provisions Act, 1952 (Act 19 of 1952).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 4
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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The Employees Provident Fund Organisation vs Sunil Kumar B.
Court's Decision & Legal Precedent
The Central Government's power to amend the Employees' Pension Scheme, 1995 under Section 7 of the 1952 Act is valid and the notification GSR 609(E) dated 22 August 2014 is legal and constitutional. Amendments raising the pensionable salary cap from Rs. 6,500 to Rs. 15,000, changing the computation methodology from 12 months to 60 months, and restricting automatic coverage to these salary levels constitute reasonable classification under Article 14 and fall within the government's amendment authority. However, the requirement for employees to contribute 1.16% of salary exceeding Rs. 15,000 is ultra vires the 1952 Act as it lacks statutory authorization. The interpretation in R.C. Gupta that no cutoff date exists for exercising options under the pre-amendment scheme remains valid and applies to the modified scheme, requiring the government to extend the option period for employees who were unable to exercise options due to the authority's earlier cutoff date interpretation. Employees of exempted establishments cannot be excluded from the option to remain in the pension scheme with higher salary coverage on equal terms with regular establishment employees.
On this section: Establishes legal framework for framing Employees' Pension Scheme and specifies that Central Government may frame scheme through notification. Scheme must provide for superannuation, retiring, disability pension and family benefits
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The Employees Provident Fund Organisation vs Sunil Kumar B.
Court's Decision & Legal Precedent
The Central Government validly exercised its delegated authority under Section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, to amend the Employees' Pension Scheme by G.S.R. 609(E) dated 22nd August 2014. The amendments, including the increase in maximum pensionable salary cap from Rs.6,500 to Rs.15,000, change in lookback period for calculating pensionable salary from 12 months to 60 months, and restrictions on new membership above the salary cap, constitute reasonable classification under Article 14 and are constitutional. However, the requirement for employee contribution at 1.16% on salary exceeding Rs.15,000 is ultra vires the parent Act as the Act does not contemplate employee contributions to the pension fund, and such contribution can only be mandated by amending the parent Act. Existing members who did not exercise options prior to the 2014 amendment cannot be debarred from exercising options under the amended paragraph 11(4) by reference to the six-month time limit for fresh options, and such time limit is extended by four months to ensure fairness. Employees of exempted establishments are entitled to receive identical pension benefits as employees of regular establishments and shall not be discriminated against. The interpretation given in R.C. Gupta regarding absence of cutoff dates in pre-2014 paragraph 11(3) remains valid and shall be implemented within eight weeks.
On this section: Establishes authority of Central Government to frame Employees' Pension Scheme and provides for establishment of Pension Fund with specified contributions from employers not exceeding 8.33% of wages
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The Employees Provident Fund Organisation vs Sunil Kumar B
Court's Decision & Legal Precedent
The Employees' Pension (Amendment) Scheme 2014 is legally valid and constitutional as the amendment was made within the vested power of the Central Government under Section 7 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 read with paragraph 32 of the scheme and Entry 10 of Schedule III of the Act; the classification of employees based on salary for pension purposes satisfies the reasonable classification test under Article 14 of the Constitution; however, the requirement for employees to contribute 1.16 per cent on salary exceeding Rs. 15,000 per month is ultra vires the parent Act as it lacks statutory backing, and operation of this provision is suspended for six months to enable legislative amendment; the extension of the computation period from 12 months to 60 months is a valid exercise of power; the deadline for exercising fresh pension option under amended paragraph 11(4) is extended by four months from the date of judgment to protect the rights of employees who could not exercise options earlier due to misinterpretation of cutoff date requirements; employees of exempted establishments are entitled to the same pension scheme coverage as regular establishment employees.
On this section: Establishes power of Central Government to frame Employees' Pension Scheme; defines scope of pension scheme by specifying provisions that may be made (superannuation pension, widow pension, etc.); crucial for determining authority to amend scheme and scope of such amendments
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The Employees Provident Fund Organisation vs Sunil Kumar B.
Court's Decision & Legal Precedent
The Central Government's power to amend the Employees' Pension Scheme under Section 7 of the 1952 Act and Schedule III, Entry 10 is valid and constitutional when exercised on basis of relevant material and within statutory framework. Amendments appropriately classifying employees by salary levels and altering computation methodology are permissible. However, requirements not statutorily backed (such as employee contribution of 1.16 per cent) are ultra vires. Employees retain rights to exercise options as interpreted in R.C. Gupta without temporal cutoff, and amendments must be applied uniformly to both exempted and unexempted establishment employees. The narrow scope of judicial review in pension scheme modifications does not permit courts to second-guess policy decisions on fund sustainability based on economic considerations.
On this section: Establishes authority and framework for Central Government to frame Employees' Pension Scheme; specifies pension fund composition and beneficiaries; cited for government's power to create pension scheme but does not explicitly require employee contribution
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 6
What have the courts held on Section 6 of the Employees Provident Funds and Miscellaneous Provisions Act?
The Employees Provident Fund Organisation vs Sunil Kumar B. (04 Nov 2022) is the leading judgment on this section among those set out below: Establishes legal framework for framing Employees' Pension Scheme and specifies that Central Government may frame scheme through notification. Scheme must provide for superannuation, retiring, disability pension and family benefits. Another 3 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 6 of the Employees Provident Funds and Miscellaneous Provisions Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Employees Provident Funds and Miscellaneous Provisions Act 6, section 6 Employees Provident Funds and Miscellaneous Provisions Act, section 6 of the Employees Provident Funds and Miscellaneous Provisions Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 4 reported judgments on this section are set out on this page, beginning with The Employees Provident Fund Organisation vs Sunil Kumar B. (04 Nov 2022).
What should I read with Section 6 of the Employees Provident Funds and Miscellaneous Provisions Act, and has it changed?
4 other provisions in this corpus refer back to it.
When was the Employees Provident Funds and Miscellaneous Provisions Act enacted?
Employees Provident Funds and Miscellaneous Provisions Act was enacted in 1952 as Act 19 of 1952. India Code records no commencement date for it. It is in force as at the date shown on this page.
Other sections of this Act
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- 16. 1352 words
- 10. 1044 words
- 21. Power to make rules365 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Read from the Government's own scanned gazette with Azure Document Intelligence, then split into sections by their numbering. India Code publishes no text for this Act. The scan itself is mirrored into our own storage and served at /scan/170e54e7-ce78-4f68-a87e-74d303432d05.pdf, so the reading here can be checked against the page it came from without depending on India Code's own copy staying where it is (it was at https://indiacode.gov.in/server/api/core/bitstreams/b26cd3be-f16e-4135-9a45-4bd068bb2cce/content). This page is not a substitute for legal advice.