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CS Professional · Labour Laws and Practice · Social Security Legislations

The Central Government notifies that the Employees' State Insurance Corporation will also administer another social security scheme. The notification provides for spending on extra personnel. Which statement matches Section 13?

Under Section 13 the Central Government may provide that the expenditure on additional functions, including personnel, is borne by it, and the Social Security Organisation must incur that expenditure only after the Central Government's prior approval. It is not met by employers or the Organisation's own fund.

  1. AExpenditure may be borne by the Central Government and is incurred by the Organisation after prior approval of the Central GovernmentCorrect
  2. BExpenditure must be met from the Organisation's own fund, with no Central approval
  3. CExpenditure is borne by employers, with approval of the State Government
  4. DExpenditure is made after the fact, with Central approval only for amounts above a prescribed limit

Explanation

Section 13(iii) lets the Central Government provide that expenditure for the additional functions, including appointing or engaging personnel, is borne by it. Section 13(v) requires such expenditure to be made by the Organisation after prior approval of the Central Government. The other options contradict this.

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