5 *** The contribution which shall be paid by the employer to the Fund shall be 6 [ten per cent.] of the basic wages, 7 [dearness allowance and retaining allowance (if any)] for the time being payable to each of the employees 8 [(whether employed by him directly or by or through a contractor)], and the employees‟ contribution shall be equal to the contribution payable by the employer in respect of him and may, 9 [if any employee so desires, be an amount exceeding 6 [ten per cent.]of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section]:
9 [Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words 6 [ten per cent.], at both the places where they occur, the words 10 [twelve per cent.]shall be substituted:]
Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for the rounding off of such fraction to the nearest rupee, half of a rupee or quarter of a rupee.
11 [Explanation 1].—For the purposes of this 12 [section], dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
13 [Explanation 2.—For the purposes of this 12 [section], “retaining allowance” means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.]
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1. Ins. by Act 33 of 1988, s. 7. (w.e.f. 1-8-1988).
2. Subs. by s. 8, ibid., for certain words (w.e.f. 1-8-1988).
3. Subs. by Act 99 of 1976, s. 20, for “and the Family Pension Scheme” (w.e.f. 1-8-1976).
4. Subs. by Act 25 of 1996, s. 4, for “Family Pension” (w.e.f. 16-11-1995).
5. The brackets and figure “(1)” omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
6. Subs. by Act 10 of 1998, s. 2, for “eight and one-third per cent.” (w.e.f. 22-9-1997).
7. Subs. by Act 46 of 1960, s. 4, for “and the dearness allowance” (w.e.f. 31-12-1960).
8. Ins. by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
9. Subs. by Act 33 of 1988, s. 9, for certain words (w.e.f. 1-8-1988).
10. Subs. by Act 10 of 1998, s. 2, for “ten per cent.” (w.e.f. 22-9-1997).
11. The Explanation re-numbered as Explanation1 by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).
12. Subs. by Act 28 of 1963, s. 5, for “sub-section” (w.e.f. 30-11-1963).
13. The Explanation ins. by Act 46 of 1960, s. 4 (w.e.f. 31-12-1960).
14. Omitted by Act 28 of 1963, s. 5 (w.e.f. 30-11-1963).
11 1 [6A. Employees’ Pension Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees‟ Pension Scheme for the purpose of providing for—
(a) superannuation pension, retiring pension or permanent total disablement pension to the employees of any establishment or class of establishments to which this Act applies; and
(b) widow or widower‟s pension, children pension or orphan pension payable to the beneficiaries of such employees.
(2) Notwithstanding anything contained in section 6, there shall be established, as soon as may be after framing of the Pension Scheme, a Pension Fund into which there shall be paid, from time to time, in respect of every employee who is a member of the Pension Scheme,—
(a) such sums from the employer‟s contribution under section 6, not exceeding eight and one-third per cent. of the basic wages, dearness allowance and retaining allowance, if any, of the concerned employees, as may be specified in the Pension Scheme;
(b) such sums as are payable by the employers of exempted establishments under sub-section (6) of section 17;
(c) the net assets of the Employees' Family Pension Fund as on the date of the establishment of the Pension Fund;
(d) such sums as the Central Government may, after due appropriation by Parliament by law in this behalf, specify.
(3) On the establishment of the Pension Fund, the Family Pension Scheme (hereinafter referred to as the ceased scheme) shall cease to operate and all assets of the ceased scheme shall vest in and shall stand transferred to, and all liabilities under the ceased scheme shall be enforceable against, the Pension Fund and the beneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than the benefits they were entitled to under the ceased scheme, from the Pension Fund.
(4) The Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in the Pension Scheme.
(5) Subject to the provisions of this Act, the Pension Scheme may provide for all or any of the matters specified in Schedule III.
(6) The Pension Scheme may provide that all or any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in that behalf in that Scheme.
(7) A Pension Scheme, framed under sub-section (1), shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme or both Houses agree that the scheme should not be made, the scheme shall thereafter have effect only in such modified form or be of no effect, as the may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]
2 [6C. Employees’ Deposit linked Insurance Scheme.—(1) The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees‟ Deposit-linked Insurance Scheme for the purpose of providing life insurance benefits to the employees of any establishment or class of establishments to which this Act applies.
1. Subs. by Act 25 of 1996, s. 5, for sections 6A and 6B (w.e.f. 16-11-1995).
2. Ins. by Act 99 of 1976, s. 21 (w.e.f. 1-8-1976).
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(2) There shall be established, as soon as may be after the framing of the Insurance Scheme, a Deposit-linked Insurance Fund into which shall be paid by the employer from time to time in respect of every such employee in relation to whom he is the employer, such amount, not being more than one per cent. of the aggregate of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable in relation to such employee as the Central Government may, by notification in the Official Gazette, specify.
Explanation.—For the purposes of this sub-section, the expressions “dearness allowance” and “relating allowance” have the same meanings as in section 6.
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(4) (a) The employer shall pay into the Insurance Fund such further sums of money, not exceeding one-fourth of the contribution which he is required to make under sub-section (2), as the Central Government may, from time to time, determine to meet all the expenses in connection with the administration of the Insurance Scheme other than the expenses towards the cost of any benefits provided by or under that scheme.
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(5) The Insurance Fund shall vest in the Central Board and be administered by it in such manner as may be specified in the Insurance Scheme.
(6) The Insurance Scheme may provide for all or any of the matters specified in Schedule IV.
(7) The Insurance Scheme may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in that Scheme.]
2 [6D. Laying of schemes before Parliament.—Every scheme framed under section 5, section 6A and section 6C shall be laid, as soon as may be after it is framed, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the scheme, or both Houses agree that the scheme should not be framed, the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that scheme.]