Section 2 EPF Act 1952: Definitions
Section 2 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 defined the principal expressions used throughout the EPF law, including "basic wages", "employee", "employer", "Fund", "Pension Scheme" and "Tribunal".
Current legal status: The Code on Social Security, 2020 was brought into force on 21 November 2025. Section 164 of the Code repeals the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, subject to statutory savings and transitional provisions. Accordingly, Section 2 reproduced below is important for the historical operation of the EPF Act and for saved rights, liabilities, proceedings, schemes and actions, but current matters should also be checked under the Code on Social Security, 2020 and the applicable rules and schemes.
The former Section 2 opened with the words "In this Act, unless the context otherwise requires". This means the definitions governed the Act unless a different meaning was required by the context.
Definitions under Section 2 of the EPF Act, 1952
(a) Appropriate Government. In relation to an establishment belonging to or under the control of the Central Government, or connected with a railway company, major port, mine, oil-field or controlled industry, or an establishment having departments or branches in more than one State, it meant the Central Government. In relation to any other establishment, it meant the State Government.
(aa) Authorised officer. It meant the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Deputy Provident Fund Commissioner, Regional Provident Fund Commissioner, or another officer authorised by the Central Government by notification in the Official Gazette.
(b) Basic wages. It meant all emoluments earned by an employee while on duty, on leave or on holidays with wages, in accordance with the contract of employment, and paid or payable in cash. The statutory definition excluded:
(i) the cash value of any food concession;
(ii) dearness allowance, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable in respect of employment or work done in such employment; and
(iii) presents made by the employer.
(c) Contribution. A contribution payable in respect of a member under a Scheme, or a contribution payable in respect of an employee to whom the Insurance Scheme applies.
(d) Controlled industry. An industry whose control by the Union has been declared by a Central Act to be expedient in the public interest.
(e) Employer. For a factory, the expression included the owner or occupier, the agent of the owner or occupier, the legal representative of a deceased owner or occupier and, where a manager was named under the Factories Act, the person so named. For another establishment, it meant the person or authority having ultimate control over its affairs and, where those affairs were entrusted to a manager, managing director or managing agent, included that person.
(f) Employee. Any person employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, who received wages directly or indirectly from the employer. It also included a person employed by or through a contractor in connection with the establishment and an apprentice other than an apprentice engaged under the Apprentices Act, 1961 or under the standing orders of the establishment.
(ff) Exempted employee. An employee to whom a Scheme or the Insurance Scheme would have applied but for an exemption granted under Section 17.
(fff) Exempted establishment. An establishment in respect of which an exemption had been granted under Section 17 from all or any provisions of a Scheme or the Insurance Scheme, whether the exemption was granted to the establishment itself or to a person or class of persons employed in it.
(g) Factory. Premises, including their precincts, in any part of which a manufacturing process was being carried on or was ordinarily carried on, with or without the aid of power.
(gg) and (ggg). These clauses stood omitted.
(h) Fund. The provident fund established under a Scheme.
(i) Industry. An industry specified in Schedule I, including another industry added to that Schedule by notification under Section 4.
(ia) Insurance Fund. The Deposit-linked Insurance Fund established under Section 6C(2).
(ib) Insurance Scheme. The Employees' Deposit-linked Insurance Scheme framed under Section 6C(1).
(ic) Manufacture or manufacturing process. A process for making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing or otherwise treating or adapting an article or substance with a view to its use, sale, transport, delivery or disposal.
(j) Member. A member of the Fund.
(k) Occupier of a factory. The person having ultimate control over the affairs of the factory and, where the affairs were entrusted to a managing agent, that agent was deemed to be the occupier.
(kA) Pension Fund. The Employees' Pension Fund established under Section 6A(2).
(kB) Pension Scheme. The Employees' Pension Scheme framed under Section 6A(1).
(ka) Prescribed. Prescribed by rules made under the Act.
(kb) Recovery Officer. An officer of the Central Government, State Government or Board of Trustees constituted under Section 5A who was authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under the Act.
(l) Scheme. The Employees' Provident Fund Scheme framed under Section 5.
(ll) Superannuation. In relation to an employee who was a member of the Pension Scheme, attainment of the age of fifty-eight years.
(m) Tribunal. Following the 2017 amendment, "Tribunal" meant the Industrial Tribunal referred to in Section 7D. This corrects the older wording that referred to the Employees' Provident Funds Appellate Tribunal.
Why these definitions matter
The definitions determined the scope of coverage, liability and administration under the former EPF Act. In particular, the meanings of "basic wages", "employee" and "employer" were central to contribution and coverage questions, while "appropriate Government", "Recovery Officer" and "Tribunal" identified the competent governmental and adjudicatory authorities.
Transition under the Code on Social Security, 2020: Section 164 contains repeal and savings provisions. Among other things, actions already taken under repealed enactments can continue under corresponding provisions of the Code to the extent provided by the savings clause. The EPF Scheme, 1952, Employees' Pension Scheme, 1995, Employees' Deposit Linked Insurance Scheme, 1976 and Tribunal (Procedure) Rules, 1997 are also dealt with by the transitional provisions. For a current dispute or compliance question, consult the Code, current rules, schemes, notifications and official EPFO directions in addition to this historical Section 2 text.
Official legal sources
For the authoritative and updated position, refer to the Government of India's India Code text of the former EPF Act, the Ministry of Labour and Employment, and the Employees' Provident Fund Organisation. The current social-security framework is governed by the Code on Social Security, 2020, subject to the applicable rules, schemes, notifications and savings provisions.
