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Section 15: Schemes under Employees' Provident Fund

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Employees' Provident Fund
Competent Labour Forum
Act No. 36 of 2020
Section 14 All 163 Sections of Code on Social Security, 2020 Section 16

Legal Commentary & Landmark Judgments: Section 15

Section 15 of the Code on Social Security, 2020 establishes the plenary statutory empowerment of the Central Government to formulate, modify, and administer three cornerstone retirement and welfare schemes under Chapter III: the Employees' Provident Fund Scheme, the Employees' Pension Scheme, and the Employees' Deposit-Linked Insurance Scheme.

  • Tripartite Scheme Architecture: Section 15(1) empowers the Central Government to frame the Employees' Provident Fund (EPF) Scheme for retirement lump-sum accumulations; Section 15(2) enables the Employees' Pension Scheme (EPS) for superannuation, widow, and disability pensions; Section 15(3) authorizes the Employees' Deposit-Linked Insurance (EDLI) Scheme for life insurance cover.
  • Statutory Prospective & Retrospective Operation: Section 15(4) explicitly permits schemes framed under this section to take effect retrospectively or prospectively from such date as specified in the official gazette notification, provided no accrued rights are unconstitutionally destroyed.
  • Sovereign Amendment & Modification Powers: Central Government retains plenary statutory authority to amend, add to, vary, or substitute any scheme provision by subsequent notification, ensuring dynamic responsiveness to actuarial, demographic, and macroeconomic shifts.
Key Landmark Precedents:
  • Employees' Provident Fund Organisation v. Sunil Kumar B. (2022) SCC OnLine SC 1521 / (2023) 3 SCC 701: A 3-Judge Bench of the Supreme Court upheld the constitutional validity of amendments made by the Central Government to the Pension Scheme under Section 6A (now Section 15), while providing relief to employees regarding higher pension contributions on actual wages.
  • M.P. Shikshak Congress v. R.P.F.C. (1999) 1 SCC 396: The Supreme Court held that schemes framed by the Central Government under the central EPF enactment prevail over inconsistent state service rules and enactments by virtue of Article 254 of the Constitution.
  • B.P.L. Ltd. v. R.P.F.C. (2002) 10 SCC 408: The Supreme Court affirmed that rules and operational parameters embodied in schemes formulated under statutory authority carry full legislative force and govern both private and public sector enterprises.
Courtroom Practice & Strategic Litigation Guidance:

Payroll and human resource departments must configure ERP systems to handle the distinct statutory operational rules of all three schemes simultaneously. In light of the Supreme Court's ruling in Sunil Kumar B., employers must meticulously archive wage data, joint option forms, and inspection records to facilitate lawful pension recalculations on actual wages without triggering administrative penalties.

Section 14 All 163 Sections of Code on Social Security, 2020 Section 16