Question

The basic pay of a teacher is Rs 7000 per month. He
contributes 9% to his provident funed to which his
employer also contributes 9%. Find the amount of Interest payable at the end of the year at rate of 4% per annum.​

Answer 1

Answer:

Employees' Basic Pay + DA: Rs 25000. Employee contribution towards EPF: 12% x 25000 = Rs 3000. As per the Act -12% Employer contribution will be divided into 2 parts i.e. 8.33% towards Employees pension scheme and rest 3.67% towards Employee Provident fund.