{"id":92733,"date":"2025-06-01T11:31:32","date_gmt":"2025-06-01T11:31:32","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92733"},"modified":"2025-06-01T11:31:32","modified_gmt":"2025-06-01T11:31:32","slug":"which-one-of-the-following-statements-is-not-correct-57","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/","title":{"rendered":"Which one of the following statements is not correct?"},"content":{"rendered":"

Which one of the following statements is not correct?<\/p>\n

[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″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CISF-AC-EXE – 2019<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. While the standard rate is 12%, the question posits a 10% scenario, which is applicable to certain establishments (e.g., those employing less than 20 persons or specified sick industries). However, the base for calculation remains basic wages, dearness allowance, and retaining allowance, not just basic wages. Therefore, the statement that the contribution is 10 percent of basic wages *only* is incorrect.
\n<\/section>\n
\n– EPF contributions are typically calculated on the total of basic wages, dearness allowance, and retaining allowance.
\n– The standard contribution rate is 12%, but a 10% rate is applicable under specific conditions.
\n– Even at the 10% rate, the calculation base usually includes DA and retaining allowance, not just basic wages.
\n– Employee contribution is generally equal to the employer’s contribution.
\n– Employees can voluntarily contribute more than the statutory minimum, but employers are not obligated to match the excess amount.
\n<\/section>\n
\nStatement B correctly identifies the base for calculation. Statement C is correct as the employee contribution matches the employer’s minimum (10% in this scenario) and can be higher. Statement D correctly describes the rule regarding voluntary higher contributions. Statement A incorrectly limits the calculation base to basic wages *only*.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 … <\/p>\n

Detailed SolutionWhich one of the following statements is not correct?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1089],"tags":[1119,1112],"class_list":["post-92733","post","type-post","status-publish","format-standard","hentry","category-upsc-cisf-ac-exe","tag-1119","tag-economic-and-social-development","no-featured-image-padding"],"yoast_head":"\nWhich one of the following statements is not correct?<\/title>\n<meta name=\"description\" content=\"The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. While the standard rate is 12%, the question posits a 10% scenario, which is applicable to certain establishments (e.g., those employing less than 20 persons or specified sick industries). However, the base for calculation remains basic wages, dearness allowance, and retaining allowance, not just basic wages. Therefore, the statement that the contribution is 10 percent of basic wages *only* is incorrect. - EPF contributions are typically calculated on the total of basic wages, dearness allowance, and retaining allowance. - 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.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following statements is not correct?\" \/>\n<meta property=\"og:description\" content=\"The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. While the standard rate is 12%, the question posits a 10% scenario, which is applicable to certain establishments (e.g., those employing less than 20 persons or specified sick industries). However, the base for calculation remains basic wages, dearness allowance, and retaining allowance, not just basic wages. Therefore, the statement that the contribution is 10 percent of basic wages *only* is incorrect. - EPF contributions are typically calculated on the total of basic wages, dearness allowance, and retaining allowance. - 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.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:31:32+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which one of the following statements is not correct?","description":"The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. While the standard rate is 12%, the question posits a 10% scenario, which is applicable to certain establishments (e.g., those employing less than 20 persons or specified sick industries). However, the base for calculation remains basic wages, dearness allowance, and retaining allowance, not just basic wages. Therefore, the statement that the contribution is 10 percent of basic wages *only* is incorrect. - EPF contributions are typically calculated on the total of basic wages, dearness allowance, and retaining allowance. - 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.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/","og_locale":"en_US","og_type":"article","og_title":"Which one of the following statements is not correct?","og_description":"The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. 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Therefore, the statement that the contribution is 10 percent of basic wages *only* is incorrect. - EPF contributions are typically calculated on the total of basic wages, dearness allowance, and retaining allowance. - 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.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:31:32+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-57\/","name":"Which one of the following statements is not correct?","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:31:32+00:00","dateModified":"2025-06-01T11:31:32+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) generally requires contributions to be calculated on basic wages, dearness allowance, and retaining allowance. 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