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Finin2min SummarySection 14Section 15Section 16Section 17Section 18Section 19Section 20Section 21Section 22Section 23Rules/formsState alertsProvision map
Finin2min SummarySection 14Section 15Section 16Section 17Section 18Section 19Section 20Section 21Section 22Section 23Rules/formsState alertsProvision map
Chapter decision flow
Classify establishment & person→Fix event date→Apply section and Rule→Complete form/record→Retain evidence & remedy file
Chapter in 2 Minutes
Covers the Code-level framework for provident fund, pension and deposit-linked insurance, including schemes, funds, contributions, contractor employees, exemptions/authorised maintenance, transfers and appeals.
Who should use this chapter
Covered employers, employees, contractors, payroll teams and advisers dealing with PF/pension/insurance membership, contribution, transfer, exemption or appeal issues.
What to do first
- Check coverage and the applicable 2026 EPF/EPS/EDLI scheme before computing membership or contribution.
- Include contractor-worker responsibility in the contribution/evidence workflow.
- Reconcile wage definition/ceiling, member data and scheme-specific contribution rules.
- Preserve UAN/account transfer and appeal records where employment or establishment status changes.
Main compliance risks
Using pre-Code scheme assumptions without checking the operative 2026 scheme; omitting contractor employees; misapplying wage ceiling or contribution base; weak member/account-transfer records.
Worker / beneficiary perspective
Eligible members should receive correct PF/pension/insurance credit, portability and benefit processing under the operative scheme and Code.
Transition / old-law point
Read Chapter III together with the Employees’ Provident Funds Scheme, 2026, Employees’ Pension Scheme, 2026 and Employees’ Deposit-Linked Insurance Scheme, 2026, plus any corrigenda and savings provisions.
Section-by-section provision map
| Provision | Subject | Implementation focus |
|---|---|---|
| Section 14 | Appointment of officers of Central Board | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 15 | Schemes | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 16 | Funds | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 17 | Contribution in respect of employees and contractors | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 18 | Fund to be recognised under Act 43 of 1961 | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 19 | Priority of payment of contributions over other debts | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 20 | Chapter not to apply to certain establishments | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 21 | Authorising certain employers to maintain provident fund accounts | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 22 | Transfer of accounts | Trigger, linked Rule/form, evidence, consequence and remedy |
| Section 23 | Appeal to Tribunal | Trigger, linked Rule/form, evidence, consequence and remedy |
Section 14: Appointment of officers of Central Board
Current statutory text
14. Appointment of officers of Central Board.—(1) The Central Government may appoint a Central
Provident Fund Commissioner who shall be the Chief Executive Officer of the Central Board and shall also
function as head of the Employees’ Provident Fund Organisation.
Explanation.—For the purposes of this Code, the expression “Employees’ Provident Fund
Organisation” means the organisation consisting of officers and employees of the Central Board.
(2) The Central Provident Fund Commissioner shall be subject to the general control and
superintendence of the Central Board in the discharge of his functions under this Code.
(3) The Central Government shall also appoint a Financial Advisor and Chief Accounts Officer to assist
the Central Provident Fund Commissioner in the discharge of his duties.
(4) The Central Board may appoint, 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 Provident Fund Scheme, the Pension Scheme and the Insurance Scheme or other
responsibilities assigned to the Central Board from time to time by the Central Government.
(5) No appointment to 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 the Central Board in a Group 'A' or Group 'B'
post.
(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
Provident Fund.
(7) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of
the Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional
Provident Fund Commissioners, Assistant Provident Fund Commissioners 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:
Provided further that the salary and allowances of the officers specified in this clause shall not exceed
the scale of pay respectively provided in the Provident Fund Scheme.
(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.Applicable Central Rules immediately below the provision
No direct Central Rule is mapped. Check general procedural Rules, State Rules and later notifications.
Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 14.
Section 15: Schemes
Current statutory text
15. Schemes.—(1) The Central Government may, by notification—
(a) frame a scheme to be called the Employees' Provident Fund Scheme for which the provident
funds shall be established under this Chapter for employees or for any class of employees and specify
the establishments or class of establishments to which the said scheme shall apply;
(b) frame a scheme to be called the Employees' Pension Scheme for the purpose of providing for—
(i) superannuation pension, retiring pension or permanent total disablement pension to the
employees of any establishment or class of establishments to which this Chapter applies;
(ii) widow or widower's pension, children pension or orphan pension payable to the beneficiaries
of such employees; and
(iii) nominee pension;
(c) frame a scheme to be called the Employees' Deposit Linked Insurance Scheme for the purpose
of providing life insurance benefits to the employees of any establishment or class of establishments to
which this Chapter applies;
(d) frame any other scheme or schemes for the purposes of providing social security benefits under
this Code to self-employed workers or any other class of persons; and
(e) modify any scheme referred to in clauses (a), (b), (c) and (d) by adding thereto, amending or
varying therein, either prospectively or retrospectively.
(2) Subject to the provisions of this Chapter, the schemes referred to in clauses (a), (b) and (c) of
sub-section (1) may provide for all or any of the matters respectively specified in Part A, Part B and Part C
of the Fifth Schedule.
(3) The schemes may provide that all or any of its provisions shall take effect either prospectively or
retrospectively on and from such date as may be specified in that behalf in the scheme.What this section means in practice
- EPF, Pension and EDLI obligations operate through schemes framed under the Code; the scheme text is indispensable.
- Only the commenced sub-sections and notified schemes should be treated as operative.
Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 15.
Section 16: Funds
Current statutory text
16. Funds.—(1) The Central Government may, for the purposes of—
(a) the Provident Fund Scheme, establish a Provident Fund where the contributions paid by the
employer to the fund shall be ten per cent. of the wages for the time being payable to each of the
employees (whether employed by him directly or by or through a contactor), and the employee's
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 the wages, 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:
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, 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 “twelve per cent.” shall be substituted:
Provided further that the Central Government, after making such inquiry as it deems fit, may, by
notification, specify rates of employees’ contributions and the period for which such rates shall apply
for any class of employee;
(b) the Pension Scheme, establish a Pension Fund in the manner specified in that scheme by that
Government into which there shall be paid, from time to time, in respect of every employee who is a
member of the Pension Scheme,—
(i) such sums from the employer's contribution under clause (a) not exceeding eight and one-
third per cent. of the wages or such per cent. of wages as may be notified by the Central Government;
(ii) such sums payable as contribution to the Pension Fund, as may be specified in the Pension
Scheme, by the employers of the exempted establishments under section 143 to which the pension
scheme applies;
(iii) such sums as the Central Government after due appropriation by Parliament by law in this
behalf, specify;
(c) the Insurance Scheme, establish a Deposit-Linked Insurance Fund in the manner specified in
that scheme by that Government into which there shall be paid by the employer from time to time in
respect of every such employee in relation to whom he is the employer, such amount, not being more
than one per cent. of the wages or such per cent. of wages as may be notified by the Central Government
for the time being payable in relation to such employee:
Provided that the employer shall pay into the Insurance Fund such further sums of money, not
exceeding one-fourth of the contribution which he is required to make under this clause, as the Central
Government may, from time to time, determine to meet all the expenses in connection with the
administration of the Insurance Scheme other than the expenses towards the cost of any benefits
provided by or under the Insurance Scheme.
(2) The Provident Fund, the Pension Fund and the Insurance Fund shall vest in, and be administered
by, the Central Board in such manner as may be specified in the respective schemes.What this section means in practice
- Maintain separate accounting and governance for provident fund, pension fund and deposit-linked insurance fund.
- The commencement notification is partial for this section; do not assume every clause is live without checking.
Applicable Central Rules immediately below the provision
Central Rule 6: Rule 6 — Administration of funds vested in Central Board
Use the linked 2026 Central Rules/Gazette for the full rule text, forms and any later amendment.
Mapped Rules: Rule 6 | Primary source: section 16.
Section 17: Contribution in respect of employees and contractors
Current statutory text
17. Contribution in respect of employees and contractors.—(1) The amount of contribution (that is
to say, the employer's contribution as well as the employee's contribution in pursuance of any scheme and
the employer's contribution in pursuance of the Insurance Scheme) and any charge for meeting the cost of
administering the fund paid or payable by an employer in respect of an employee employed by or through
a contractor may be recovered by such employer from the contractor, either by deduction from any amount
payable to the contractor under any contract or as a debt payable by the contractor.
(2) A contractor from whom the amounts mentioned in sub-section (1) may be recovered in respect of
any employee employed by or through him may recover from such employee, the employee's contribution
under any scheme by deduction from the wages payable to such employee.
(3) Notwithstanding any contract to the contrary, no contractor shall be entitled to deduct the employer's
contribution or the charges referred to in sub-section (1) from the wages payable to an employee employed
by or through him or otherwise to recover such contribution or charges from such employee.What this section means in practice
- Principal-employer exposure must include contractor employees and the recovery/adjustment mechanism against contractors.
- Reconcile muster, wage and remittance data across principal employer, contractor and member accounts.
Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 17.
Section 18: Fund to be recognised under Act 43 of 1961
Current statutory text
18. Fund to be recognized under Act 43 of 1961.— For the purposes of the Income-tax Act, 1961,
the Provident Fund shall be deemed to be a recognised provident fund within the meaning of clause (38) of
section 2 of that Act:
Provided that nothing contained in the said Act shall operate to render ineffective any provision of the
Provident Fund Scheme (under which the Provident Fund is established) which is repugnant to any of the
provisions of that Act or of the rules made thereunder.Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 18.
Section 19: Priority of payment of contributions over other debts
Current statutory text
19. Priority of payment of contributions over other debts.—Notwithstanding anything contained in any other law for the time being in force, any amount due under this Chapter shall be the charge on the assets of the establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).
Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 19.
Section 20: Chapter not to apply to certain establishments
Current statutory text
20. Chapter not to apply to certain establishments.—(1) This Chapter shall not apply—
(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912) or under
any other law for the time being in force in any State relating to co-operative societies employing less
than fifty persons and working without the aid of power; or
(b) to any other establishment belonging to or under the control of the Central Government or a
State Government and whose employees are entitled to the benefit of contributory provident fund or
old age pension in accordance with any scheme or rule framed by the Central Government or the State
Government governing such benefits; or
(c) to any other establishment set up under any Central or State or any other law for the time being
in force and whose employees are entitled to the benefits of contributory provident fund or old age
pension in accordance with any scheme or rule framed under that law governing such benefits; or
(d) to the employees who, immediately before the commencement of this Code, were receiving
benefits of Provident Fund under any Central or State enactment.
(2) If the Central Government is of the opinion that having regard to the financial position of any class
of establishment or other circumstances of the case, it is necessary or expedient so to do, it may, by
notification and subject to such conditions, as may be specified in the notification, exempt, whether
prospectively or retrospectively, that class of establishments from the operation of this Chapter for such
period as may be specified in the notification.What this section means in practice
- Exclusion/exemption must be supported by the exact establishment category and not by a broad industry assumption.
- Assign a named owner for provident fund, pension and deposit-linked insurance architecture; identify HR, payroll, finance, legal, contractor and authorised-signatory roles.
Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 20.
Section 21: Authorising certain employers to maintain provident fund accounts
Current statutory text
21. Authorising certain employer to maintain provident fund accounts.— (1) The Central
Government may, on an application made to it in this behalf by the employer and the majority of employees
in relation to an establishment employing one hundred or more persons, authorise the employer by an order
in writing, to maintain a provident fund account in relation to the establishment, in such manner as may be
prescribed by the Central Government and subject to such terms and conditions as may be specified in the
Provident Fund Scheme:
Provided that no authorisation shall be made under this sub-section if the employer of such
establishment had committed any default in the payment of provident fund contribution or had committed
any other offence under this Code during the three years immediately preceding the date of such
authorisation.
(2) Where an establishment is authorised to maintain a provident fund account under sub-section (1),
the employer in relation to such establishment shall maintain such account, submit such return, deposit the
contribution in such manner, provide for such facilities for inspection, pay such administrative charges, and
abide by such other terms and conditions, as may be specified in the Provident Fund Scheme.
(3) Any authorisation made under this section may be cancelled by the Central Government by order
in writing if the employer fails to comply with any of the terms and conditions of the authorisation or where
he commits any offence under any provision of this Code:
Provided that before cancelling the authorisation, the Central Government shall give the employer a
reasonable opportunity of being heard.Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 21.
Section 22: Transfer of accounts
Current statutory text
22. Transfer of accounts.— Where an employee,—
(a) employed in an establishment to which this Chapter applies, relinquishes his employment
therefrom and obtains employment in any other establishment to which this Chapter applies or not; or
(b) employed in an establishment to which this Chapter does not apply, relinquishes his
employment therefrom and obtains employment in an establishment to which this Chapter applies,
then, his accumulated amount in provident fund account or pension account, as the case may be, shall be
transferred or dealt with in the manner as may be specified in the Provident Fund Scheme or the Pension
Scheme, as the case may be.Mapped Rules: No direct Central Rule mapped in the page mapping | Primary source: section 22.
Section 23: Appeal to Tribunal
Current statutory text
23. Appeal to Tribunal.—(1) Any person aggrieved by an order passed by any authority in regard to
the following matters may prefer an appeal to the Tribunal constituted by the Central Government,
namely:—
(a) determination and assessment of dues under section 125 relating to Chapter III; and
(b) levy of damages under section 128 relating to Chapter III.
(2) Every appeal under sub-section (1) shall be filed in such form and manner, within such time and
accompanied by such fees as may be prescribed by the Central Government.
(3) No appeal under clause (a) of sub-section (1) by the employer shall be entertained by the Tribunal
unless he has deposited with Social Security Organisation concerned twenty-five per cent. of the amount
due from him as determined by an officer under section 125.
(4) The Tribunal shall endeavour to decide the appeal within a period of one year from the date on
which the appeal has been preferred.
CHAPTER IV
EMPLOYEES STATE INSURANCE CORPORATIONWhat this section means in practice
- Identify appealable order, limitation, prescribed form, fee/deposit and Tribunal jurisdiction before filing.
- Assign a named owner for provident fund, pension and deposit-linked insurance architecture; identify HR, payroll, finance, legal, contractor and authorised-signatory roles.
Applicable Central Rules immediately below the provision
Central Rule 13: Rule 13 — Form, manner, time limits and fees for filing of appeal
Use the linked 2026 Central Rules/Gazette for the full rule text, forms and any later amendment.
Mapped Rules: Rule 13 | Primary source: section 23.
Rules, forms, registers, portals and due dates
| Rule | Subject | Text/control status |
|---|---|---|
| 6 | Rule 6 — Administration of funds vested in Central Board | Source-controlled mapping |
| 13 | Rule 13 — Form, manner, time limits and fees for filing of appeal | Source-controlled mapping |
Forms and registers must be confirmed from the appended 2026 Central Rules and the live portal applicable to the appropriate Government. A form is not treated as current merely because an earlier law used the same number.
Notifications and effective-date history
| Control | Required action |
|---|---|
| Enactment | Record Act number, assent and Gazette publication. |
| Commencement | Use the provision-specific commencement notification; the four Codes became broadly operative from 21 November 2025 subject to earlier partial commencement and corrigenda. |
| Central Rules | Read the applicable 2026 Central Rules from their Gazette date and verify subsequent amendments. |
| State instrument | Check final State Rules, authority notifications, forms and rates where the State is appropriate Government. |
Central / State jurisdiction check
- Confirm the appropriate Government before using a Rule, form, authority or portal.
- Do not assume Central Rules replace a valid State rule/notification where the State is the appropriate Government.
- Record the Gazette/notification and effective date used for the live transaction or claim.
Practical application
Payroll reconciles employee and contractor member lists to the scheme contribution file before payment and investigates every UAN/member mismatch.
On a business transfer, the employer preserves account, contribution and transfer evidence so employees’ balances and service are not lost.
Evidence checklist
- Employee/UAN/member master
- Wage and contribution working
- Contractor employee reconciliation
- Electronic challan/payment acknowledgement
- Nomination/claim/transfer records
- Appeal order and deposit evidence where relevant
User Q&A
Are Chapter III rules enough by themselves?
No. Chapter III must be read with the operative EPF, EPS and EDLI schemes because scheme text supplies much of the membership, contribution and benefit mechanics.
Does contractor labour matter for contribution compliance?
Yes. Section 17 expressly addresses contribution in respect of employees and contractors; principal-employer/contractor records should be reconciled.
Can an establishment be outside Chapter III?
Section 20 addresses establishments to which the chapter does not apply, while exemptions/authorised maintenance have separate conditions. Check the exact provision and scheme.
Where do appeals go?
Section 23 provides the Code-level appeal route to the Tribunal; Rule 13 addresses filing mechanics. Verify the current procedure before filing.
Official sources and section references
Use the signed Gazette/official authority text for the event date. The links below are the primary references carried by this chapter.