Section 11

Section 11 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Subs. by Act 22 of 1958, s. 2, for clause (a).

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

(i) in relation to an establishment belonging to, or under the control of, the Central Government or in relation to an establishment connected with a railway company, a major port, a mine or an oilfield or a controlled industry, "[or in relation to an establishment having departments or branches in more than one State,] the Central Government; and (ii) in relation to any other establishment, the State Government;] 2[(aa) "authorised officer" means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government, by notification in the Official Gazette;] (b) "basic wages" means all emoluments which are earned by an employee while on duty or 3[ on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include- (i) the cash value of any food concession;

(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;

(iii) any presents made by the employer; Col (c) "contribution" means a contribution payable in respect of a member under a Scheme 4[or the contribution payable in respect of an employee to whom the Insurance Scheme applies];

(d) "controlled industry" means any industry the control of which by the Union has been declared by a Central Act to be expedient in the public interest; 5[(e) "employer" means- (i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;] (f) "employee" means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of [an establishment], and who gets his wages directly or indirectly from the employer, "[and includes any person- (i) employed by or through a contractor in or in connection with the work of the establishment; 1. Ins. by Act 22 of 1965, s. 2 (w.e.f. 24-11-1964). 2. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988). 3. Subs. by s. 3, ibid., for "on leave with wages" (w.e.f. 1-8-1988). 4. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 5. Subs. by Act 94 of 1956, s. 4, for clause (e). 6. Subs. by ibid., s. 3, for "a factory". 7. Subs. by Act 33 of 1988, s. 3, for "and includes any person employed by or through a contractor in or in connection with the work of the establishment" (w.e.f. 1-8-1988).

(ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or under the standing orders of the establishment;] "[(ff) "exempted employee" means an employee to whom a Scheme 2[or the Insurance Scheme, as the case may be,] would, but for the exemption granted under3 *** section 17, have applied; (fff) "exempted 4[establishment]" means 5[an establishment] in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme 2[or the Insurance Scheme, as the case may be], whether such exemption has been granted to the 4[establishment] as such or to any person or class of persons employed therein;] (g) "factory" means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried on, whether with the aid of power or without the aid of power; * * * * 6* (h) "Fund" means the provident fund established under a Scheme;

(i) "industry" means any industry specified in Schedule I, and includes any other industry added to the Schedule by notification under section 4; 2[(ia) "Insurance Fund" means the Deposit-linked Insurance Fund established under sub-section (2) of section 6C;

(ib) "Insurance Scheme" means the Employees" Deposit-linked Insurance Scheme framed under sub-section (1) of section 6C;] 7[8[(ic)] "manufacture" or "manufacturing process" means any process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal;] (j) "member" means a member of the Fund;

(k) "occupier of a factory" means the person who has ultimate control over the affairs of the factory, and, where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory; 9[(kA) "Pension Fund" means the Employees' Pension Fund established under sub-section (2) of section 6A; (kB) "Pension Scheme" means the Employees' Pension Scheme framed under sub-section (1) of section 6A;] 10[(ka) "prescribed" means prescribed by rules made under this Act; 1. Ins. by Act 37 of 1953, s. 3. 2. Ins. by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 3. The words, brackets and figure "sub-section (1) of' omitted by Act 28 of 1963, s. 2 (w.e.f. 30-11-1963). 4. Subs. by Act 94 of 1956, s. 3, for "factory". 5. Subs. by s. 3, ibid., for "a factory". 6. Omitted by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 7. Subs. by Act 28 of 1963, s. 2, for clause (ia) (w.e.f. 30-11-1963). 8. Clause (ia) re-lettered as clause (ic) by Act 99 of 1976, s. 18 (w.e.f. 1-8-1976). 9. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 10. Ins. by Act 33 of 1988, s. 3 (w.e.f. 1-8-1988).

(kb) "Recovery Officer" means any officer of the Central Government, State Government or the Board of Trustees constituted under section 5A, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act;] 1[(I) "Scheme" means the Employees' Provident Fund Scheme framed under section 5.] 2[(ll) "Superannuation", in relation to an employee, who is the member of the Pension Scheme means the attainment, by the said employee, of the age of fifty-eight years;] 3[(m) "Tribunal" means the Industrial Tribunal referred to in section 7 D]. 4[2A. Establishment to include all departments and branches .- For the removal of doubts, it is hereby declared that where an establishment consists of different departments or has branches, whether situate in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.] 5[3. Power to apply Act to an establishment which has a common provident fund with another establishment .- Where immediately before this Act becomes applicable to an establishment there is in existence a provident fund which is common to the employees employed in that establishment and employees in any other establishment, the Central Government may, by notification in Official Gazette, direct that the provisions of this Act shall also apply to such other establishment.] 4. Power to add to Schedule I .- (1) The Central Government may, by notification in the Official Gazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion that a provident fund scheme should be framed under this Act, and thereupon the industry so added shall be deemed to be an industry specified in Schedule I for the purposes of this Act.

(2) All notifications under sub-section (1) shall be laid before Parliament, as soon as may be, after they are issued. 5. Employees' Provident Fund Schemes .- [(1)] The Central Government may, by notification in the Official Gazette, frame a Scheme to be called the Employees' Provident Fund Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the "[establishments] or class of "[establishments] to which the said Scheme shall apply 8[and there shall be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme]. 9[(1A) The Fund shall vest in, and be administered by, the Central Board constituted under section 5A. (1B) Subject to the provisions of this Act, a Scheme framed under sub-section (1) may provide for all or any of the matters specified in Schedule II.] 10[(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.] 1. Subs. by Act 16 of 1971, s. 14, for clause (!) (w.e.f. 23-4-1971). 2. Ins. by Act 25 of 1996, s. 3 (w.e.f. 16-11-1995). 3. Ins. by Act 7 of 2017, s. 159 (w.e.f. 26-5-2017). 4. Ins. by Act 46 of 1960, s. 3 (w.e.f. 31-12-1960). 5. Subs. by Act 94 of 1956, s. 5, for section 3. 6. Section 5 re-numbered as sub-section (1) thereof by Act 37 of 1953, s. 4. 7. Subs. by Act 94 of 1956, s. 3, for "factories". 8. Added by Act 37 of 1953, s. 4. 9. Ins. by Act 28 of 1963, s. 3 (w.e.f. 30-11-1963). 10. Ins. by Act 37 of 1953, s. 4. 1[5A. Central Board .- (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, a Board of Trustees for the territories to which this Act extends (hereinafter in this Act referred to as the Central Board) consisting of the following 2[persons as members] namely :- (a) 3[a Chairman and a Vice-Chairman] to be appointed by the Central Government; 4[(aa) the Central Provident Fund Commissioner, ex officio;] (b) not more than five persons appointed by the Central Government from amongst its officials;

(c) not more than fifteen persons representing Governments of such States as the Central Government may specify in this behalf, appointed by the Central Government;

(d) 5[ten persons] representing employers of the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employers as may be recognised by the Central Government in this behalf; and (e) 5[ten persons] representing employees in the establishments to which the Scheme applies, appointed by the Central Government after consultation with such organisations of employees as may be recognised by the Central Government in this behalf.

(2) The terms and conditions subject to which a member of the Central Board may be appointed and the time, place and procedure of the meetings of the Central Board shall be such as may be provided for in the Scheme.

(3) The Central Board shall "[, subject to the provisions of section 6A "[and section 6C]] administer the Fund vested in it in such manner as may be specified in the Scheme.

(4) The Central Board shall perform such other functions as it may be required to perform by or under any provisions of the Scheme &[, the 9[Pension] Scheme and the Insurance Scheme]. 10[(5) The Central Board shall maintain proper accounts of its income and expenditure in such form and in such manner as the Central Government may, after consultation with the Comptroller and Auditor- General of India, specify in the Scheme.

(6) The accounts of the Central Board shall be audited annually by the Comptroller and Auditor- General of India and any expenditure incurred by him in connection with such audit shall be payable by the Central Board to the Comptroller and Auditor-General of India.

(7) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Central Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Central Board.

(8) The accounts of the Central Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded 1. Ins. by Act 28 of 1963, s. 4. 2. Subs. by Act 33 of 1988, s. 4, for "persons" (w.e.f. 1-8-1988). 3. Subs. by s. 4, ibid., for "a chairman" (w.e.f. 1-8-1988). 4. Ins. by s. 4, ibid. (w.e.f. 1-8-1988). 5. Subs. by s. 4, ibid., for "six persons" (w.e.f. 1-8-1988). 6. Ins. by Act 16 of 1971, s. 15 (w.e.f. 23-4-1971). 7. Ins. by Act 99 of 1976, s. 19 (w.e.f. 1-8-1976). 8. Subs. by s. 19, ibid., for "and the Family Pension Scheme" (w.e.f. 1-8-1976). 9. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995). 10. Ins. by Act 33 of 1988, s. 4 (w.e.f. 1-8-1988). to the Central Board which shall forward the same to the Central Government along with its comments on the report of the Comptroller and Auditor-General.

(9) It shall be the duty of the Central Board to submit also to the Central Government an annual report of its work and activities and the Central Government shall cause a copy of the annual report, the audited accounts together with the report of the Comptroller and Auditor-General of India and the comments of the Central Board thereon to be laid before each House of Parliament.] 1[5AA. Executive Committee .- (1) The Central Government may, by notification in the Official Gazette, constitute, with effect from such date as may be specified therein, an Executive Committee to assist the Central Board in the performance of its functions.

(2) The Executive Committee shall consist of the following persons as members, namely :- (a) a Chairman appointed by the Central Government from amongst the members of the Central Board;

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

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

(d) three persons representing the employers elected by the Central Board from amongst the persons referred to in clause (d) of sub-section (1) of section 5A, (e) three persons representing the employees elected by the Central Board from amongst the persons referred to in clause (e) of sub-section (1) of section 5A;

(f) the Central Provident Fund Commissioner, ex officio.

(3) The terms and conditions subject to which a member of the Central Board may be appointed or elected to the Executive Committee and the time, place and procedure of the meetings of the Executive Committee shall be such as may be provided for in the Scheme]. 5B. State Board .- (1) The Central Government may, after consultation with the Government of any State, by notification in the Official Gazette, constitute for that State a Board of Trustees (hereinafter in this Act referred to as the State Board) in such manner as may be provided for in the Scheme.

(2) A State Board shall exercise such powers and perform such duties as the Central Government may assign to it from time to time.

(3) The terms and conditions subject to which a member of a State Board may be appointed and the time, place and procedure of the meetings of a State Board shall be such as may be provided for in the Scheme. 5C. Board of Trustees to body corporate .- Every Board of Trustees constituted under section 5A or section 5B shall be a body corporate under the name specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued. 5D. Appointment of officers .- (1) The Central Government shall appoint a Central Provident Fund Commissioner who shall be the chief executive officer of the Central Board and shall be subject to the general control and superintendence of that Board.

(2) The Central Government may also appoint 2[a Financial Adviser and Chief Accounts Officers] to assist the Central Provident Fund Commissioner in the discharge of his duties. 1. Ins. by Act 33 of 1988, s. 5 (w.e.f. 1-8-1988). 2. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988).

(3) The Central Board may appoint 1[, subject to the maximum scale of pay, as may be specified in the Scheme, as many Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident Fund Commissioners, Assistant Provident Fund Commissioners and] such other officers and employees as it may consider necessary for the efficient administration of the Scheme 2[, the 3[Pension] Scheme and the Insurance Scheme].

(4) No appointment to 4[the post of the Central Provident Fund Commissioner or an Additional Central Provident Fund Commissioner or a Financial Adviser and Chief Accounts Officer or any other post under the Central Board carrying a scale of pay equivalent to the scale of pay of any Group 'A' or Group 'B' post under the Central Government] shall be made except after consultation with the Union Public Service Commission:

Provided that no such consultation shall be necessary in regard to any such appointment- - (a) for a period not exceeding one year; or (b) if the person to be appointed is at the time of his appointment- (i) a member of the Indian Administrative Service, or (ii) in the service of the Central Government or a State Government or the Central Board in a "[Group 'A' or Group 'B' post].

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

(6) The method of recruitment, salary and allowances, discipline and other conditions of service of the Central Provident Fund Commissioner, "[and the Financial Adviser and Chief Accounts Officer] shall be such as may be specified by the Central Government and such salary and allowances shall be paid out of the Fund. 7[(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner, Assistant Provident Fund Commissioner and other officers and employees of the Central Board shall be such as may be specified by the Central Board in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:

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

(b) In determining the corresponding scales of pay of officers and employees under clause (a), the Central Board shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Central Board shall refer the matter to the Central Government whose decision thereon shall be final.] 1. Ins. by Act 33 of 1988, s. 6. (w.e.f. 1-8-1988). 2. Subs. by Act 99 of 1976, s. 20, for "and the Family Pension Scheme" (w.e.f. 1-8-1976). 3. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995). 4. Subs. by Act 33 of 1988, s. 6, for certain words (w.e.f. 1-8-1988). 5. Subs. by s. 6, ibid., for "Class I or Class II post" (w.e.f. 1-8-1988). 6. Subs. by s. 6, ibid., for ",Deputy Provident Fund Commissioner and Regional Provident Fund Commissioner" (w.e.f. 1-8-1988). 7. Subs. by s. 6, ibid., for sub-section (7) (w.e.f. 1-8-1988).

(8) The method of recruitment, salary and allowances, discipline and other conditions of service of officers and employees of a State Board shall be such as may be specified by that Board, with the approval of the State Government concerned. 1[5DD. Acts and proceedings of the Central Board or its Executive Committee or the State Board not to be in validated on certain grounds .- No act done or proceeding taken by the Central Board or the Executive Committee constituted under section 5AA or the State Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Central Board or the Executive Committee or the State Board, as the case may be.] 5E. Delegation .- 2[The Central Board may delegate to the Executive Committee or to the Chairman of the Board or to any of its officers and a State Board may delegate to its Chairman or to any of its officers] subject to such conditions and limitations, if any, as it may specify, such of its powers and functions under this Act as it may deem necessary for the efficient administration of the Scheme 3[, the 4[Pension] Scheme and the Insurance Scheme].] 6. Contributions and matters which may be provided for in Schemes .- 5 *** The contribution which shall be paid by the employer to the Fund shall be '[ten per cent.] of the basic wages, 7[dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees 8[(whether employed by him directly or by or through a contractor)], and the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may, '[if any employee so desires, be an amount exceeding '[ten per cent. ]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 this section]: 9[Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words "[ten per cent.], at both the places where they occur, the words 10[twelve per cent. ]shall be substituted:] Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee. 11[Explanation 1] .- For the purposes of this 12[section], dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee. 13[Explanation 2 .- For the purposes of this 12[section], "retaining allowance" means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.] * * 14* * * 1. Ins. by Act 33 of 1988, s. 7. (w.e.f. 1-8-1988). 2. Subs. by s. 8, ibid., for certain words (w.e.f. 1-8-1988). 3. Subs. by Act 99 of 1976, s. 20, for "and the Family Pension Scheme" (w.e.f. 1-8-1976). 4. Subs. by Act 25 of 1996, s. 4, for "Family Pension" (w.e.f. 16-11-1995). 5. The brackets and figure "(1)" omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963). 6. Subs. by Act 10 of 1998, s. 2, for "eight and one-third per cent." (w.e.f. 22-9-1997). 7. Subs. by Act 46 of 1960, s. 4, for "and the dearness allowance" (w.e.f. 31-12-1960). 8. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963). 9. Subs. by Act 33 of 1988, s. 9, for certain words (w.e.f. 1-8-1988). 10. Subs. by Act 10 of 1998, s. 2, for "ten per cent." (w.e.f. 22-9-1997).

Section 11, The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (Act 19 of 1952).