EPF, EPS, EDLI & EPFO — Set 5

Correct Answer: C. Both employee and employer contributions along with interest credited

The EPF passbook shows detailed month-wise entries of both employee and employer contributions along with the annual interest credited. It also shows the total closing balance and any withdrawals or transfers. The e-passbook is available on the EPFO member portal and through the UMANG app.

Correct Answer: C. 2015

EPFO began investing in equity markets through Exchange Traded Funds (ETFs) in August 2015. Initially, 5% of incremental corpus was invested in ETFs, gradually increased to 15%. This marked a significant shift from EPFO's traditionally conservative investment approach limited to government securities and bonds.

Correct Answer: D. Over 7 crore active members

EPFO has over 7 crore (70 million) active members and manages a corpus of over Rs 18 lakh crore. It is one of the largest social security organisations in the world by number of subscribers. The number of contributing establishments exceeds 7 lakh.

Correct Answer: C. Payment of Gratuity Act 1972

Gratuity in India is governed by the Payment of Gratuity Act, 1972. It is a lump sum payment made by an employer to an employee as a token of appreciation for services rendered. Unlike EPF, gratuity is not a monthly contribution but is paid upon exit after 5 years of continuous service.

Correct Answer: C. EPF is a monthly contributory scheme; Gratuity is a lump sum by employer after 5 years

EPF is a monthly contributory retirement savings scheme where both employer and employee contribute 12% each. Gratuity is a one-time lump sum paid entirely by the employer after the employee completes 5 years of continuous service. EPF is managed by EPFO while gratuity is administered by the employer subject to the Gratuity Act.

Correct Answer: C. Annual vacation travel

EPF partial withdrawals under Form 31 are permitted for specific needs like marriage, housing (purchase/construction/repair), medical emergencies, education of children, and purchase of equipment for the physically handicapped. Routine expenses like annual vacation travel are not permitted reasons for EPF advance. The advance facility ensures members use retirement savings only for genuine needs.

Correct Answer: C. Certain sick industries notified by the government

The government has notified certain sick or loss-making industries where the EPF contribution rate is reduced to 10% each for employer and employee. This relief helps financially stressed industries continue EPF coverage without the full 12% burden. Examples include beedi industry, brick kilns, and certain textile mills.

Correct Answer: B. Outreach camps to resolve EPF grievances at local level

'Nidhi Aapke Nikat' is an EPFO outreach programme where officials visit districts to resolve EPF-related grievances at the grassroots level. It helps workers who face difficulty accessing EPFO regional offices. The programme involves settlement of claims, KYC updates, and member education in local languages.

Correct Answer: B. 0.5%

The employer contributes 0.5% of the employee's basic wages to the EDLI scheme. This contribution is entirely borne by the employer and provides life insurance coverage to all EPF members. The EDLI premium is calculated on a wage ceiling of Rs 15,000.

Correct Answer: C. EPFO Central Board of Trustees

The Central Board of Trustees (CBT) of EPFO recommends the interest rate on EPF deposits each financial year. The recommended rate is then ratified by the Ministry of Finance before crediting to members' accounts. The CBT considers EPFO's income from investments while deciding the interest rate.