Question 1

In which year was the Employees' Provident Fund Organisation (EPFO) established?

Accepted Answer

1952. EPFO was established in 1952 under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It is one of the largest social security organisations in India. It operates under the Ministry of Labour and Employment, Government of India.

Question 2

Which ministry oversees the functioning of EPFO?

Accepted Answer

Ministry of Labour and Employment. EPFO functions under the administrative control of the Ministry of Labour and Employment. The ministry formulates policies related to provident fund, pension, and insurance. The Union Minister of Labour and Employment serves as the ex-officio Chairman of the Central Board of Trustees.

Question 3

What is the tripartite body that manages EPFO called?

Accepted Answer

Central Board of Trustees. The Central Board of Trustees (CBT) is the apex decision-making body of EPFO. It is tripartite in nature, comprising representatives of the central government, state governments, employers, and employees. The CBT sets policies including interest rates on EPF deposits.

Question 4

What percentage of basic salary does an employer contribute to EPF?

Accepted Answer

12%. Employers contribute 12% of the employee's basic salary plus dearness allowance towards the EPF. This 12% is split — 3.67% goes to the EPF account and 8.33% goes to the Employees' Pension Scheme (EPS). The employee also contributes 12% entirely to the EPF account.

Question 5

What percentage of basic salary does an employee contribute to EPF?

Accepted Answer

12%. An employee contributes 12% of basic salary and dearness allowance to the EPF account every month. This entire 12% goes directly into the employee's EPF corpus. The matching 12% from the employer is split between EPF and EPS.

EPF, EPS, EDLI & EPFO — Set 1