Question

A social scheme in which both the employee and the employer contribute every month ten per cent of the basic wages.

Options

• Gratuity

• Pension

• Provident Fund

• Group Insurance

Answer 1

Provident Fund

Explanation:

The Provident Fund (PF) is a government-managed retirement savings scheme where both the employer and the employee are mandated to contribute a fixed percentage (historically 10%, though often 12% today) of the employee's basic monthly salary into a dedicated account.