Sections 149 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.
Sections 149 to 152 give the Central Government power to direct States and Social Security Organisations (s.149), let the appropriate Government frame schemes (s.150), protect members' fund money from attachment and make dues a charge on the establishment's assets (s.151), and allow the Schedules to be amended by notification (s.152).
The Central Government may give directions to State Governments, State Boards under s.12 and Social Security Organisations (s.149). The appropriate Government may frame schemes after previous publication (s.150). Money credited to a member under Chapters III to VII cannot be assigned, charged or attached for the member's debts, and on death it vests in the nominee or family (s.151(1), (2)). Amounts due under those Chapters are a charge on the establishment's assets, paid in priority as the Insolvency and Bankruptcy Code, 2016 provides (s.151(3)). The Centre can amend the First, Fourth, Fifth, Sixth and Seventh Schedules; the appropriate Government can only add to the Second and Third (s.152).
Why it matters
Employees and nominees rely on s.151 to know that PF and similar credits are safe from creditors, while employers and lenders should know that statutory dues rank as a charge on assets. Employers also need to watch the power to amend Schedules: the applicability tests in the First Schedule and the lists of occupational diseases and injuries can change by notification. Our legal consultation service can help with creditor, insolvency and scheme-related questions. See also sections 17 to 19 on the priority of provident fund dues.
Section 149: directions by the Central Government
The Central Government may give directions to:
- any State Government or a State Board constituted under section 12, to execute in that State any provision of the Code; or
- any Social Security Organisation, on matters relating to implementing the Code.
The text sets no procedure or form for directions and no consequence for not following them.
Section 150: power to frame schemes
The appropriate Government may, subject to previous publication, frame schemes not inconsistent with the Code to give effect to its provisions. Previous publication follows section 158, except that schemes under Chapter III are outside that condition (see sections 154 to 158).
Section 151: protection against attachment and priority of dues
Members' money (s.151(1))
Notwithstanding any other law, the amount standing to the credit of an employee or member under Chapters III, IV, V, VI or VII, or of an exempted employee in a provident fund maintained by the employer:
- cannot be assigned or charged; and
- is not liable to attachment under any decree or order of any court for any debt or liability of the employee or member.
On death (s.151(2))
Any amount to the credit of a member (or exempted employee) at death, payable to the nominee, or if there is no nomination, to the family under the scheme or rules:
- vests in the nominee or family, subject to deductions authorised by the scheme or rules;
- is clear of any debt or liability of the deceased or the nominee incurred before death; and
- is not liable to attachment under any court decree or order.
Charge on assets (s.151(3))
Notwithstanding any other law, any amount due under Chapters III to VII is a charge on the assets of the establishment to which it relates and is paid in priority in accordance with the Insolvency and Bankruptcy Code, 2016.
| Sub-section | Protects | Against |
|---|---|---|
| (1) | Credits under Chapters III to VII and exempted PF | Assignment, charge, attachment for the member's debts |
| (2) | Amount vesting in nominee or family at death | Deceased's or nominee's earlier debts and attachment |
| (3) | Dues owed by the establishment | Other creditors: dues are a charge on assets with priority as per the IBC |
Section 152: power to amend the Schedules
| Who | Schedules | Kind of amendment |
|---|---|---|
| Central Government | First, Fourth, Fifth, Sixth and Seventh | Addition or deletion, by notification, if satisfied it is necessary or expedient |
| Appropriate Government | Second and Third | Addition only, "and not otherwise" |
Upon the addition or deletion the Schedule stands amended accordingly. So the list of persons treated as employees for compensation (Second Schedule) and the list of occupational diseases (Third Schedule) can grow but not shrink; see the Second Schedule and the Third Schedule.
A worked example
An employee has a large credit in his PF account and a civil court issues a decree against him for a personal loan. Under s.151(1) his fund credit cannot be attached for that debt. If the employee dies, his nominee receives the amount and the creditor's claim against the deceased does not reach it (s.151(2)). Meanwhile, a company in insolvency owes contributions for several months; under s.151(3) those dues are a charge on its assets and are paid in the priority the Insolvency and Bankruptcy Code provides. (Illustrative.)
Need help with attachment or insolvency questions?
If a creditor has attached an account that holds statutory credits, or if dues are being claimed in an insolvency, timely legal advice matters. Our legal consultation team can help you assess how s.151 and the Insolvency and Bankruptcy Code apply and what reply or application is needed.
Key takeaways
- The Centre may direct State Governments, State Boards and Social Security Organisations.
- Schemes need previous publication (Chapter III schemes are excluded from s.158's condition).
- Fund credits cannot be attached, assigned or charged for the member's debts.
- A death credit vests in the nominee or family, clear of the deceased's earlier debts.
- Dues are a charge on assets with priority under the IBC.
- Second and Third Schedules can only be added to; the others can be added to or cut back by the Centre.
Read next
- Sections 154 and 155: Power to make rules
- Section 153: Transitional provisions for existing organisations
- Sections 17 to 19: Contribution, tax status and priority of PF dues
- Attachment and recovery of EPF dues, Section 8B
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.