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CS Professional · Labour Laws and Practice · Social Security Legislations

The Central Government's Social Security Fund receives money from three sources, including composition of offences under the Code relating to the Central Government. A company secretary is advising on how the money must be kept. Which statement is correct?

A separate account must be established and maintained for each source of the Central Social Security Fund, and the money is expended only for the purposes for which that particular account was set up. Pooling all receipts for any welfare use is not permitted.

  1. AAll receipts are pooled in one account and spent on any worker welfare purpose
  2. BA separate account is maintained for each source and expended for the purpose of that accountCorrect
  3. CComposition money goes to the State fund and never to the Central fund
  4. DSeparate accounts are kept only for gig workers, not for other sources

Explanation

Section 141(2) requires a separate account for the funding under each of clauses (i), (ii) and (iii), and 141(3) says the fund is expended for the purposes for which each separate account was established. Pooling the receipts would contradict this.

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