EPF, EPS, EDLI & EPFO — Set 14

Correct Answer: B. Both Houses of Parliament

EPFO's annual report is laid before both Houses of Parliament as required under the EPF Act. It covers EPFO's financial performance, number of subscribers, claim settlements, enforcement actions, and new initiatives. The report provides transparency on how workers' retirement funds are managed and invested.

Correct Answer: A. Maharashtra

Maharashtra has the highest number of EPF subscribers due to its large industrial base, particularly in Mumbai, Pune, and Nagpur. It is followed by Karnataka (due to the Bengaluru IT sector), Tamil Nadu, and Gujarat. Industrialised states naturally have higher EPF subscriber counts.

Correct Answer: B. Compound interest annually

EPF interest is compounded annually — the interest declared each year is added to the EPF balance and earns interest in subsequent years. Monthly contributions are tracked for interest calculation during the year but credited as a lump sum at year-end. The compounding effect significantly grows the corpus over a long career.

Correct Answer: B. Code on Social Security 2020 provisions for gig workers

The Code on Social Security 2020 includes provisions for extending social security benefits to gig workers and platform workers for the first time. It mandates aggregators (like Swiggy, Zomato, Ola) to contribute to a social security fund for these workers. This is a landmark step toward covering the new economy workforce not covered by traditional EPF.

Correct Answer: B. Shram Suvidha Portal / EPFO Employer Portal

Employers register their establishments with EPFO through the Shram Suvidha Portal or the dedicated EPFO employer portal. After registration, employers receive an establishment code number, which is used for all future EPF compliances. The Shram Suvidha Portal is a unified portal for multiple labour law compliances managed by the Ministry of Labour.

Correct Answer: B. 10%

Certain industries including beedi making, brick kiln, jute, guar gum, coir, and certain textile mills are notified under a lower EPF contribution rate of 10% for both employer and employee. This relief is provided to support financially stressed industries. The lower rate must be specifically notified by the central government.

Correct Answer: B. Conducts audits and inspections of covered establishments for compliance

PF Inspectors (Enforcement Officers) are authorised under the EPF Act to inspect establishments, verify records, and ensure compliance with contribution payment and employee registration requirements. They can initiate recovery proceedings against defaulting employers. The inspection function is crucial for expanding EPF coverage to uncovered eligible establishments.

Correct Answer: C. Monthly family pension

In case of death of an EPS member while in service, the spouse receives monthly family pension regardless of years of service completed. The minimum service or age conditions do not apply for death-related family pension. The spouse continues to receive family pension for life (or until remarriage as applicable).

Correct Answer: C. Quarterly

PPF interest is compounded on a quarterly basis. The interest is calculated on the minimum balance between the 5th and last day of each month. For maximum benefit, PPF deposits should be made before the 5th of the month. The compounded interest is credited to the PPF account at the end of each financial year.

Correct Answer: B. Rs 1.5 lakh (combined 80C limit)

Employee EPF contributions are eligible for deduction under Section 80C of the Income Tax Act, subject to the overall Section 80C limit of Rs 1.5 lakh per year. This limit is shared with other 80C instruments like PPF, ELSS, life insurance premiums, etc. Employer's contribution to EPF is not counted in the Rs 1.5 lakh limit.