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    Question

     Under EPF rules, an employer has to contribute ___

    percent of the basic salary of an employee into EPF.
    A 10% Correct Answer Incorrect Answer
    B 12% Correct Answer Incorrect Answer
    C 15% Correct Answer Incorrect Answer
    D 14% Correct Answer Incorrect Answer
    E 18% Correct Answer Incorrect Answer

    Solution

    Under EPF rules, an employer has to contribute 12 percent of the basic salary of an employee into EPF. Out of this amount, 8.33 percent goes into EPS. The current salary cap on EPF is Rs 15,000 a month. So, the maximum contribution to EPS is Rs 1,250 a month. A 1996 amendment in the EPS Act gives employees the option to raise pension contribution to 8.33 percent of the actual salary (basic + DA).

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