Question

At present, apart from the basic pay and allowances as a part of compensation, the employees and
employers contribute 12% of basic wages each towards Employees Provident Fund scheme and
Employees Pension Fund scheme. A proposal to reduce the contribution by employers and employees
to 10% of basic pay and dearness allowance was listed on the agenda for a recent meeting of
Employees Provident Fund Organization held. The stakeholders expressed their reservations about it
and they feel that it should be continued at 12%.
Explain any two needs as suggested by Maslow's Need Hierarchy Theory, which will not be satisfied
by the incentives discussed above. (4)​

Answer 1

Answer:

At present, apart from the basic pay and allowances as a part of compensation, the employees and

employers contribute 12% of basic wages each towards Employees Provident Fund scheme and

Employees Pension Fund scheme. A proposal to reduce the contribution by employers and employees

to 10% of basic pay and dearness allowance was listed on the agenda for a recent meeting of

Employees Provident Fund Organization held. The stakeholders expressed their reservations about it

and they feel that it should be continued at 12%.

Explanation: