Q107 (CISF/2019) Economy › Schemes, Inclusion & Social Sector

Which one of the following statements is not correct?

The contribution payable by the employer to the Provident Fund will be 10 percent of basic wages only.

The contribution payable by the employer to the Provident Fund will be 10 percent of the basic wages, dearness allowance and retaining allowance.

The contribution of the employees to the Provident Fund will be also minimum 10 percent.

If an employee so desires, he/she can contribute more, but the employer will not match this contribution beyond 10 percent.

Explanation

Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (specifically Section 6), the contribution to the Provident Fund is calculated based on the sum of basic wages, dearness allowance (including the cash value of any food concession), and retaining allowance (if any). Statement A is incorrect because it claims the contribution is based on "basic wages only," which excludes the other mandatory components.

While the standard statutory rate for most establishments is 12%, a 10% rate applies to certain categories, such as establishments with fewer than 20 employees or those declared as sick industries. In these cases, the 10% rate applies to both the employer and employee (making Statements B and C correct). Additionally, while employees can voluntarily contribute more than the statutory rate (Voluntary Provident Fund), the employer is not legally obligated to match any amount exceeding the prescribed limit (making Statement D correct).

SIMILAR QUESTIONS

Which of the following statements is/are correct ?

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is generally applicable to every establishment :

1. which deposits GST of more than ₹ 50,000 per year.

2. employing twenty or more persons.

Select the correct answer using the code given below :

Which one of the following statements about a borrower from a Microfinance Company is not correct?

With reference to casual workers employed in India, consider the following statements : 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the above statements are correct?

With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? 1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent. 2. It has made recommendations concerning sector-specific grants. Select the correct answer using the code given below.

Which one of the following statements is not correct?

Under the Targeted Public Distribution System, the families Below Poverty Line are provided 50 kg of foodgrains per month per family at subsidised price.

Under Annapurna Scheme, indigent senior citizens of 65 years of age or above, eligible for National Old Age Pension but not getting pension, can get 10 kg of food grains per person per month free of cost.

Ministry of Social Justice and Empowerment has a scheme in which indigent people living in welfare institutions like orphanages are given 15 kg of food grains per person per month at BPL rates.

Ministry of Human Resource Development gives financial support to Mid-day Meal Scheme for the benefit of class I to V students in government or government-aided schools

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Question map

Which one of the following statements is not correct?

Explanation

SIMILAR QUESTIONS

Which one of the following statements about a borrower from a Microfinance Company is not correct?

Which one of the following statements is not correct?