Consider the following statements in respect of granting exemption fro

Consider the following statements in respect of granting exemption from the operation of the provisions of the Employees’ Provident Funds Scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 :

  • 1. In case the appropriate government is of the opinion that the rules of provident fund as to the rate of contributions of an establishment are not less favourable than those specified in the Act, exemption may be granted.
  • 2. In case the employees in an establishment are in enjoyment of benefits in nature of provident fund, pension or gratuity, which are not less favourable to the employees than the benefits provided under the Act, exemption may be granted.

Select the correct answer using the code given below.

2 only
3 only
1 and 2
1 and 3
This question was previously asked in
UPSC CISF-AC-EXE – 2024
Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 provides for the power to grant exemption.
– Statement 1: Section 17(1)(a) allows the appropriate government to grant exemption if the rules of provident fund of the establishment are, in its opinion, not less favourable to the employees than those specified in the Act or Scheme. This matches statement 1.
– Statement 2: Section 17(1)(b) allows the appropriate government to grant exemption if the employees are in enjoyment of benefits in the nature of provident fund, pension, or gratuity which are, on the whole, not less favourable to the employees than the benefits provided under the Act or Scheme, without reducing their emoluments or other benefits. This matches statement 2.
Both statements describe valid grounds for granting exemption under the Act.
The question tests the conditions under which an establishment can be exempted from the provisions of the Employees’ Provident Funds Scheme as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Exemptions are generally granted to establishments that have their own private provident fund trusts or schemes that offer equivalent or superior benefits compared to the statutory scheme, provided certain conditions are met and the trust is managed according to prescribed rules and regulations.
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