EPF, EPS, EDLI & EPFO — Set 18

Correct Answer: C. KYC update through UAN portal (no specific form)

Bank account details can be updated digitally through the UAN member portal under the KYC section. There is no separate paper form for bank account update — it is done online and verified by the employer. Bank account seeding is mandatory for EPFO to credit claim amounts and EPS pension directly.

Correct Answer: C. Employer alone at 0.5% of wages

The EDLI insurance premium of 0.5% of basic wages is borne entirely by the employer. Employees do not contribute to EDLI. This is similar to group term life insurance provided by the employer at no cost to the employee, ensuring all EPF members have life cover.

Correct Answer: A. 7738299899

EPF members can check their PF balance by sending 'EPFOHO UAN LAN' (language code) to 7738299899 from their registered mobile number. The response provides the last known PF balance and contribution details. This SMS facility is available in multiple Indian languages for wider accessibility.

Correct Answer: A. Demand to increase minimum pension from Rs 1,000 to Rs 7,500

EPS-95 pensioners (those under the Employees' Pension Scheme launched in 1995) have long demanded an increase in the minimum pension from Rs 1,000 to at least Rs 7,500 per month. The current Rs 1,000 minimum, fixed in 2014, is considered grossly inadequate. This is a persistent demand of trade unions and worker organizations across India.

Correct Answer: B. Same 12% from the start of coverage

There is no concession on EPF contribution rates for newly covered establishments — the full 12% rate applies from the very first month of coverage. The reduced 10% rate is available only for specific notified industries regardless of how long they have been covered. This ensures uniform protection for workers from the first day of EPF coverage.

Correct Answer: C. Hyderabad

EPFO's Centralised Processing Cell (CPC) for handling large-scale claim processing is located in Hyderabad. The CPC handles auto-settlement of online claims using digital KYC verification. Centralisation of processing has enabled faster and more consistent claim settlement across the country.

Correct Answer: B. New members added to EPFO — a proxy for formal job creation

EPFO's monthly payroll report tracks the number of new subscribers joining EPF, which serves as an indicator of formal sector job creation. Economists and the government use this data to measure employment trends. The data is published with a time lag and covers new enrollments in EPF-covered establishments across sectors.

Correct Answer: D. Both B and C

EPFO provides EPF coverage for International Workers (IWs) — foreign nationals working in India in EPF-covered establishments must contribute to EPF. India has also signed Social Security Agreements (SSAs) with several countries to prevent dual contribution (contributing to social security in both India and the home country). Foreign nationals from SSA countries are exempted from EPF if covered in their home country.

Correct Answer: C. NEFT/RTGS credit to bank account → passbook update

After EPFO approves an EPF claim, the amount is transferred directly to the member's bank account through NEFT or RTGS. The EPF passbook is subsequently updated to reflect the debit. This end-to-end digital process ensures transparency and eliminates cash handling or physical cheques.

Correct Answer: B. EPFO's role will expand to cover gig workers under the SS Code 2020

Under the Code on Social Security 2020, EPFO's role is set to expand beyond the organised sector to include gig workers, platform workers, and unorganised workers. The government will create a social security fund under the SS Code with contributions from aggregators and the government for gig workers. EPFO is expected to administer these expanded social security provisions once the Code is fully implemented.