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.
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CISF-AC-EXE – 2019
– The standard contribution rate is 12%, but a 10% rate is applicable under specific conditions.
– Even at the 10% rate, the calculation base usually includes DA and retaining allowance, not just basic wages.
– Employee contribution is generally equal to the employer’s contribution.
– Employees can voluntarily contribute more than the statutory minimum, but employers are not obligated to match the excess amount.