Rules 6-7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 6 says how the Central Board administers the funds vested in it, including where money is deposited and what it may be spent on. Rule 7 sets up the Executive Committee of the Central Board: who sits on it, how employer and employee representatives are elected, the terms of office and the Secretary's role.
The Central Board administers the funds under guidelines issued by the Central Government. Money goes to the Reserve Bank of India, the State Bank of India or other approved Scheduled Banks, or is invested as notified. Funds (other than the administration account) may be spent only to pay members, nominees, heirs or legal representatives under the schemes. The Executive Committee has a chairperson and 12 other members, with the Central Provident Fund Commissioner ex officio; trustees serve four years and Executive Committee members two years, for a maximum of two terms.
Rule 6: administration of funds vested in the Central Board
Rule 6 applies to the funds of the provident fund schemes under Chapter III, which the Central Board administers. Its six sub-rules are:
| Sub-rule | What it says |
|---|---|
| 6(1) | The Central Board administers the funds vested in it in accordance with the guidelines issued by the Central Government |
| 6(2) | It may open as many accounts as it considers necessary or as specified in the schemes |
| 6(3) | All moneys of the funds are deposited in the Reserve Bank of India, the State Bank of India or other Scheduled Banks approved by the Central Government, or invested as the Central Government specifies by notification |
| 6(4) | Expenses of, and any loss from, an investment are charged to the funds |
| 6(5) | The funds, not including the administration account, are not expended for any purpose other than payment of the sums standing to the credit of individual members or their nominees, heirs or legal representatives under the schemes |
| 6(6) | The funds are operated by officers authorised by the Central Board |
For employers, rule 6 is reassurance and a warning. It protects employees' balances from use for general expenses, and it reminds you that contributions you pay belong to a ring-fenced fund. Dues you fail to pay become a recovery matter, not a matter for the employer's own books. If your establishment is unsure about coverage and compliance, our ESI and PF registration team can help. The fund and scheme provisions are in sections 15 and 16.
Rule 7: the Executive Committee
Under rule 7(1), the Central Board performs the functions assigned by the Central Government under section 13 and administers the schemes framed under section 15.
Membership (rule 7(2))
| Category | Number | How chosen |
|---|---|---|
| Chairperson | 1 | Appointed by the Central Government from among Central Board members |
| Persons from s.4(1)(b) | 2 | Appointed by the Central Government |
| Persons from s.4(1)(c) | 3 | Appointed by the Central Government |
| Employers' representatives, from s.4(1)(d) | 3 | Elected by the Central Board |
| Employees' representatives, from s.4(1)(e) | 3 | Elected by the Central Board |
| Central Provident Fund Commissioner | 1 | Ex officio |
Adding the rows (1 + 2 + 3 + 3 + 3 + 1) gives thirteen seats: the chairperson, eleven appointed or elected members and the Commissioner.
Election of employer and employee representatives (rule 7(3))
- The Chairperson of the Central Board calls a meeting for the election.
- Members propose names of employer or employee representatives, each seconded by another member.
- If the names proposed and seconded do not exceed the vacancies, those persons are declared elected.
- If they exceed the vacancies, each member present, other than the Chairperson, gets a ballot paper and votes for as many candidates as there are vacancies in each category, with not more than one vote per candidate.
- A member who votes for more candidates than vacancies, or gives more than one vote to a candidate, has all his votes treated as invalid.
- The highest votes win; in a tie the Chairperson has a casting vote.
- A question on the validity of an election is referred to the Central Government, which decides it.
Committees and function (rule 7(4) and (5))
The Central Board may by order constitute one or more committees of trustees and officers of the Employees' Provident Fund Organisation, and may include persons with special knowledge. The Executive Committee works under the general superintendence of the Central Board and performs functions assigned by it.
Terms of office (rule 7(6))
- Four years for the Chairperson, Vice-Chairperson and every trustee referred to in clauses (b), (c), (d) and (e) of s.4(1), from the date their appointment is notified in the Official Gazette.
- Two years for the Chairperson and every member of the Executive Committee, from notification.
- Everyone continues in office until a successor is notified; an Executive Committee member ceases to hold office when he ceases to be a Central Board member.
- A person filling a casual vacancy holds office for the remainder of the predecessor's term and continues until a successor is notified.
- A person is eligible for a maximum of two terms, but the limit does not apply to the Chairperson, Vice-Chairperson, and ex officio trustees or members. The two-term count also includes terms served as a trustee under clause (d) or (e) of section 5A(1) of the erstwhile Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
The Secretary (rule 7(7))
The Central Provident Fund Commissioner is the Secretary to both the Central Board and the Executive Committee. In consultation with the Chairperson, the Secretary convenes meetings, keeps minutes and takes steps to carry out decisions.
A worked example
A trustee representing employers has served one four-year term under the old Act and is nominated again under the Code. The two-term limit counts the earlier term, so he is eligible for only one more term under rule 7(6)(e). If he is elected to the Executive Committee, that seat runs for two years and ends earlier if he ceases to be a Central Board member. (Illustrative.)
Need help with PF compliance?
The governance rules above sit behind your day-to-day PF registration and return filing. If you need help with registrations, contributions or notices, our ESI and PF registration practice can guide you.
Key takeaways
- Funds are administered under Central Government guidelines and held in RBI, SBI or approved Scheduled Banks.
- Funds may be used only to pay members or their nominees, heirs or legal representatives (administration account excepted).
- The Executive Committee has employer and employee representatives elected by the Central Board, with a casting vote for the Chairperson.
- Trustees serve four years; Executive Committee members two years; maximum two terms.
- The Central Provident Fund Commissioner is Secretary to both bodies.
Read next
- Sections 4 and 5: Central Board and Employees' State Insurance Corporation
- Rule 8: ESIC Standing Committee and Medical Benefit Committee
- Rules 11 and 12: Board meetings and reconstitution
- EPF Scheme 1952: how your PF accumulates
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.