Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

Employees' Provident Fund and Pension Schemes under the Code on Social Security, 2020

Updated 11 October 2026 · Fact-checked

Under the Code on Social Security, 2020, Chapter III covers the Employees' Provident Fund. The Central Board of Trustees administers the fund under section 4, and schemes for provident fund, pension and deposit linked insurance run under section 15. To answer questions, state the provision, apply it to the facts, then conclude.

Understand Employees' Provident Fund and Pension Schemes

The Code on Social Security, 2020 merges nine older social security laws, including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Chapter III of the Code deals with the Employees' Provident Fund and its schemes. Chapter IV deals with employees' state insurance, which is a separate topic.

The Code works through a Central Board. Section 4 lets the Central Government constitute, by notification, a Board of Trustees of the Employees' Provident Fund. The Board administers the funds vested in it in the prescribed manner. It is a body corporate called the Board of Trustees of the Employees' Provident Fund. It has perpetual succession and a common seal, and can sue and be sued.

The Board is a tripartite body. It has a Chairperson and a Vice-Chairperson, and not more than five Central Government officials. It has not more than fifteen State Government representatives, ten employer representatives and ten employee representatives. The Central Provident Fund Commissioner sits ex officio. Employer and employee members are appointed after consultation with recognised organisations.

The Board does not work alone. The Central Government may constitute an Executive Committee from among Board members. The Board may also set up committees by order. It may delegate powers to its Chairperson, the Executive Committee or its officers, and a State Board may delegate to its Chairperson or officers. Delegation is subject to the conditions the delegating body specifies.

The schemes themselves are made under section 15. The Code refers to the schemes in that section, and the content covers the Provident Fund, Pension and Deposit Linked Insurance schemes. Many details, such as the manner of administering funds, tenure of members and maintenance of provident fund accounts, are left to rules made by the Central Government under section 155. In the exam, link each detail to the right source: the Code, the scheme or the rules.

Key rules to remember

Constitution of the Central Board: Section 4(1): Central Government constitutes the Board by notification, from a date it specifies; The Board is for Chapter III and the provisions of the Code relating to that Chapter.
Composition of the Central Board: Chairperson + Vice-Chairperson + up to 5 Central Government officials + up to 15 State representatives + 10 employer representatives + 10 employee representatives + Central Provident Fund Commissioner (ex officio); Note the words 'not more than' for officials and State representatives, and a fixed 'ten' for each of employers and employees.
Legal status of the Board: Section 4(2): body corporate, perpetual succession, common seal, can sue and be sued; Name: Board of Trustees of the Employees' Provident Fund.
Executive Committee and other committees: Section 4(3): Executive Committee constituted by Central Government from Board members. Section 4(4): Board may constitute committees by order; The Executive Committee comes from the Government by notification. Other committees come from the Board by order.
Delegation: Section 4(5): Board may delegate to Chairperson, Executive Committee or officers; State Board (section 12) to its Chairperson or officers; Delegation is subject to conditions and limitations in the order, for efficient administration of the schemes under section 15(1).
Tenure of members: Section 4(6): terms and conditions, including tenure, as prescribed; a Board member continues in office until a successor is appointed; The continuation proviso applies to Central Board members, even after tenure expires.
Rule-making power: Section 155(1): Central Government may make rules by notification, subject to previous publication, not inconsistent with the Code; Section 155(2)(d) covers manner of administration of funds, Executive Committee's assistance, tenure and other functions under section 4. Section 155(2)(j) covers maintenance of provident fund accounts under section 21(1).

How to solve Employees' Provident Fund and Pension Schemes questions

Use one method for any question on the Provident Fund, pension schemes or the Central Board.

1Identify what is asked: the Board's constitution, its powers, a scheme, or a rule-making matter.
2State the provision in plain words. Cite section 4 for the Board and section 15 for the schemes. Cite section 155 where the matter is left to rules.
3Separate what the Code fixes from what is left to prescribed rules or the scheme. Do not invent contribution rates or limits that the Code text does not give.
4Apply the rule to the facts. Count members, check who appoints them, and check who delegates to whom.
5If numbers are involved, work them out line by line and show the working.
6Close with a clear conclusion that answers the exact question asked.

Quickest way: Who, how and under what section

When to use it: Use this for short-note and 4-6 mark questions on the Central Board or the Provident Fund framework.

Write the one-line definition: Central Board under section 4, constituted by notification.
List the composition in order: Chairperson, Vice-Chairperson, officials, States, employers, employees, Commissioner.
Add status: body corporate, perpetual succession, common seal.
Add working: Executive Committee, committees, delegation, tenure proviso.
Finish with rules under section 155 and a one-line conclusion.

Common mistakes in Employees' Provident Fund and Pension Schemes

Saying the Central Board has ten employer and ten employee representatives 'not more than', or says five State representatives.
Students mix up the numbers because several limits appear in one list.
Fix: Remember: officials up to 5, States up to 15, employers exactly 10, employees exactly 10.
Saying the Board itself constitutes the Executive Committee.
Both the Executive Committee and other committees sound alike.
Fix: The Central Government constitutes the Executive Committee by notification under section 4(3). The Board constitutes other committees by order under section 4(4).
Treating the Board as a mere committee without legal personality.
The word 'Board' suggests an informal body.
Fix: State that it is a body corporate with perpetual succession and a common seal, and can sue and be sued under section 4(2).
Citing the old 1952 Act sections as current law.
Older study material and habit.
Fix: Use the Code on Social Security, 2020. Mention the 1952 Act only as one of the laws merged into the Code.
Stating contribution rates or wage ceilings as fixed by section 4.
Students recall numbers from earlier law and attach them to the wrong section.
Fix: Section 4 deals with the Board's constitution and administration. Details like the manner of administration, tenure and account maintenance come from rules under section 155.
Forgetting that a member continues after the tenure ends.
The proviso is short and easy to skip.
Fix: Write that a Central Board member continues to hold office until a successor is appointed.

Worked examples

Example 1

Explain the constitution and legal status of the Central Board of Trustees of the Employees' Provident Fund under the Code on Social Security, 2020.

Show the solution

Provision: Section 4(1) allows the Central Government to constitute the Board by notification, with effect from a date it specifies, for Chapter III and related provisions.
Composition: a Chairperson and Vice-Chairperson; not more than five Central Government officials; not more than fifteen State representatives; ten employer representatives; ten employee representatives; and the Central Provident Fund Commissioner ex officio.
Appointment: employer and employee members are appointed by the Central Government after consultation with recognised organisations.
Status: Section 4(2) makes the Board a body corporate with perpetual succession and a common seal, which can sue and be sued in its name.

Answer: The Central Board is a tripartite body constituted by notification under section 4(1). It is a body corporate under section 4(2), with perpetual succession, a common seal and the power to sue and be sued.

Example 2

A member of the Central Board finishes the tenure fixed for the office, but no successor has yet been appointed. The Board delegates some functions to its Executive Committee. Can the member continue, and is the delegation valid?

Show the solution

Provision on tenure: Section 4(6) says terms, including tenure, are as prescribed, and the proviso says a Central Board member continues in office after tenure expires until a successor is appointed.
Application: The member's tenure has ended, but no successor is appointed, so the member continues.
Provision on delegation: Section 4(5) lets the Central Board delegate by order to its Chairperson, Executive Committee or officers such powers as it deems necessary for efficient administration of the schemes under section 15(1).
Application: Delegation to the Executive Committee is allowed if made by order and subject to the conditions and limitations the Board specifies.

Answer: The member continues in office until a successor is appointed, under the proviso to section 4(6). The delegation is valid if made by order of the Board under section 4(5), within any conditions it specifies.

Exam tips

Learn the Board composition as a list with the exact limits: 5, 15, 10, 10. Examiners often test the numbers.
Cite section 4 for the Board and section 155(2)(d) and (j) for the rule-making matters. Do not cite sections you are unsure of.
For 'difference between EPF and EPS' questions, set out each scheme's purpose in two columns of points, and base your answer on the scheme provisions in your study material, not on guesses about rates.
Write answers in ICSI style: provision, facts or analysis, then a clear conclusion.
Use the Code on Social Security, 2020 as the base. Do not rely on the repealed 1952 Act.

Practice questions from The Code on Social Security, 2020

Employees' Provident Fund and Pension Schemes in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Employees' Provident Fund and Pension Schemes: frequently asked questions

Who constitutes the Central Board of Trustees under the Social Security Code?

The Central Government constitutes it by notification under section 4(1), with effect from a date it specifies. The Board administers the funds vested in it for Chapter III.

Is the Central Board a legal entity?

Yes. Under section 4(2) it is a body corporate called the Board of Trustees of the Employees' Provident Fund. It has perpetual succession and a common seal, and can sue and be sued.

Who sits on the Central Board?

It has a Chairperson, a Vice-Chairperson, up to five Central Government officials, up to fifteen State representatives, ten employer representatives and ten employee representatives. The Central Provident Fund Commissioner is a member ex officio.

Can the Central Board delegate its powers?

Yes. Under section 4(5) it may delegate by order to its Chairperson, Executive Committee or officers, subject to conditions and limitations it specifies. The aim is the efficient administration of the schemes under section 15(1).

Where are the details of fund administration and tenure set out?

The Code leaves them to rules made by the Central Government. Section 155(2)(d) covers the manner of administering funds, the Executive Committee's role and tenure of members under section 4.