Rule 20: Administrative expenses

Finin2min analysis — operative rule mechanics

Full notified text — Rule 20

20. Administrative expenses.–(1) The expenditure incurred by the Corporation on the following
items shall be termed as administrative expenses under section 30, namely:–

        (a) payment of fees and allowances to members of the Corporation, the Standing
Committee and the Medical Benefit Committee and other committees of the Corporation;

         (b) payment of salaries, leave and joining time allowances, travelling and compensatory
and other allowances, bonus, gratuities and compassionate allowances, pension, contributions to the
Provident or other benefit funds and training related expenses of officers and employees of the
Corporation;

         (c) defraying expenses on depreciation and maintenance of staff cars, office buildings, staff
quarters, hiring of accommodation, purchase of furniture, office equipment, stationery, printing and
other expenditure in respect of offices of the Corporation;

         (d) defraying expenses towards membership subscription to International Organisation,
and other services for the purposes of giving effect to the provisions of Chapter IV of the Code;

         (e) defraying the cost (including all expenses) of the auditing accounts of the Corporation
and of the valuation of its assets and liabilities;

         (f)   defraying the cost (including all expenses) of the Employees‘ Insurance Courts set up
under the Code;

       (g)     payment of any sums under any contract entered into for the purposes of the Code by
the Corporation or the Standing Committee thereof or by any officer duly authorised by the
Corporation or such Standing Committee in that behalf;

        (h)   payment of sums under any decree, order or award of any Court or Tribunal against the
Corporation or any of its officers or servants for any act done in the execution of his duty or under a
compromise or settlement of any suit or other legal proceedings or claim instituted or made against
the Corporation;

        (i)    defraying the cost and other charges of instituting or defending any civil or criminal
proceedings arising out of any action taken under the Code;

         (j)  defraying the expenditure in connection with publicity of the Employees‘ State
Insurance Scheme including printing of publicity materials and courses relevant for the purposes of
the Code; and

         (k) defraying the expenditure on conducting evaluation studies on various aspects of
functioning of the Employees‘ State Insurance Scheme.

(2) The percentage of the total revenue income of the Corporation which may be spent every year on
its administrative expenses shall not exceed fifteen per cent.

Explanation.– For the purposes of this rule, the expression ―Employees‘ State Insurance Scheme‖
means the schemes referred to in Chapter IV of the Code, administered by the Corporation and such
Central and state rules, regulations and notifications required to be administered by the Corporation
including administrative instructions issued by the Corporation.

Application and evidence

1. Primary statutory test — (1) The expenditure incurred by the Corporation on the following items shall be termed as administrative expenses under section 30, namely:– (a) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Committee and other committees of the Corporation;
2. Additional operative limb — (2) The percentage of the total revenue income of the Corporation which may be spent every year on its administrative expenses shall not exceed fifteen per cent.
3. Qualification / exception to test — Explanation.– For the purposes of this rule, the expression ―Employees‘ State Insurance Scheme‖ means the schemes referred to in Chapter IV of the Code, administered by the Corporation and such Central and state rules, regulations and notifications required to be administered by the Corporation including administrative instructions issued by the Corporation.
4. Numerical or timing control — (2) The percentage of the total revenue income of the Corporation which may be spent every year on its administrative expenses shall not exceed fifteen per cent.
5. Code Section mapping — 30. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Evidence file — retain facts and records proving the role/status of: Employee / worker, Tribunal, Corporation / EPFO / Board.

Cross-references & prescribed forms

Worked example

Q&A — Rule 20

Primary sources