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

The Central Government wants a change to the Employees' Provident Fund Scheme to apply from a date earlier than its notification. Under section 15 of the Code on Social Security, 2020, what is the position?

The Central Government may modify the provident fund scheme by notification, either prospectively or retrospectively, under section 15 of the Code. The Code requires no approval from State Governments, and the power does not lie with the Central Board alone.

  1. AIt cannot be made retrospective under any circumstances
  2. BThe scheme may be modified either prospectively or retrospectivelyCorrect
  3. CRetrospective modification needs the prior approval of every State Government
  4. DOnly the Central Board may modify the scheme, and only prospectively

Explanation

Section 15(1)(e) lets the Central Government modify schemes by adding to, amending or varying them, prospectively or retrospectively. Section 15(3) also allows scheme provisions to take effect from a specified date. No State approval is required by the text.

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