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    Question

    What is the employee contribution under EPF scheme?

    A 7.5% Correct Answer Incorrect Answer
    B 10.0% Correct Answer Incorrect Answer
    C 12.0% Correct Answer Incorrect Answer
    D 15.0% Correct Answer Incorrect Answer
    E 24.0% Correct Answer Incorrect Answer

    Solution

    For most employees, the contribution rate is 12% of the fixed wages of an employee, excluding HRA. The employer needs to contribute equally to the EPF account.    There are certain situations when a 10% rate is applicable. For instance, if a company meets the following criteria:  1.    Has employed less than 20 employees 2.    Has suffered losses more than its entire net worth 3.    Belongs to beedi, brick, jute or guar gum industry 4.    Is a sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction (BIFR)

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