Which one of the following statements is not correct?
[amp_mcq option1=”The contribution payable by the employer to the Provident Fund will be 10 percent of basic wages only.” option2=”The contribution payable by the employer to the Provident Fund will be 10 percent of the basic wages, dearness allowance and retaining allowance.” option3=”The contribution of the employees to the Provident Fund will be also minimum 10 percent.” option4=”If an employee so desires, he/she can contribute more, but the employer will not match this contribution beyond 10 percent.” correct=”option1″]
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.