EPF, EPS, EDLI & EPFO — Set 8

Correct Answer: D. ESIC health insurance

EPFO administers three schemes: EPF (retirement savings), EPS (pension), and EDLI (life insurance). ESIC (Employees' State Insurance Corporation) is a separate organisation that provides health insurance and other social security benefits. ESIC and EPFO are both under the Ministry of Labour and Employment but are distinct entities.

Correct Answer: B. Actual service plus past service converted to pensionable service

Pensionable service under EPS includes both actual service after joining EPS (1995 onwards) and a 'past service' component for those who were members of the earlier Family Pension Scheme. A bonus of 2 additional years is added for members completing 20 years of pensionable service. Total pensionable service directly determines the monthly pension amount.

Correct Answer: B. Account becomes 'inoperative' and stops earning interest

As per EPFO rules, an EPF account becomes 'inoperative' if no contributions are received for 36 consecutive months (3 years). Inoperative accounts do not earn interest. However, the member can reactivate the account by joining EPF-covered employment again or by meeting withdrawal conditions.

Correct Answer: B. Form 13 (online)

Form 13 is used for EPF account transfer when an employee changes jobs. The online version of Form 13 can be submitted through the EPFO member portal using UAN and Aadhaar-seeded KYC. The transfer request is approved digitally by the previous or current employer, eliminating the need for physical paperwork.

Correct Answer: B. Atmanirbhar Bharat Rozgar Yojana

ABRY stands for Atmanirbhar Bharat Rozgar Yojana, launched in 2020 to incentivise job creation during the pandemic. Under ABRY, the government paid the EPF contributions (both employer and employee share) for new employees earning up to Rs 15,000 in establishments with up to 1,000 employees. The scheme aimed to reduce the financial burden on employers and encourage hiring.

Correct Answer: C. Ministry of Labour and Employment

The Central Provident Fund Commissioner (CPFC) is appointed by the Ministry of Labour and Employment, Government of India. The CPFC is an IAS or EPF cadre officer of senior rank. The CPFC serves as the head of the EPFO and acts as the member-secretary of the Central Board of Trustees.

Correct Answer: C. 24%

The combined EPF contribution is 24% of basic wages — 12% from the employee and 12% from the employer. If an employee opts for VPF (Voluntary Provident Fund), the employee's share can exceed 12%, increasing the total beyond 24%. The employer's contribution is capped at 12%.

Correct Answer: B. Regional Provident Fund Commissioner (RPFC)

Each EPFO Regional Office is headed by a Regional Provident Fund Commissioner (RPFC). EPFO has over 120 regional and sub-regional offices across India. The RPFC oversees EPF compliance, claim settlements, and grievance redressal in their respective jurisdiction.

Correct Answer: B. Government paid employer's full EPF contribution for new employees

Under PMRPY (launched 2016), the government paid the full employer's EPF contribution (12%) for new employees earning up to Rs 15,000 for 3 years, to incentivise formal job creation. The scheme was merged into the broader ABRY during the pandemic. Both schemes used EPFO infrastructure to disburse benefits to employers.

Correct Answer: B. 18 years

As per the EPF Act, the minimum age for employment in covered establishments follows the general labour laws, which set 18 years as the minimum for adult employment. The Child Labour (Prohibition and Regulation) Act prohibits employment of children below 14 in hazardous occupations. In practice, EPF membership begins when an employee joins covered employment at or after age 18.