Which statement is correct about Employee Provident Fund Organization ........

Social Security Social Security- The concept

Which statement is correct about Employee Provident Fund Organization?

The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Home affairs that administers social security regulations.

The EPFO covers pensions and survivors’ benefits in the event of an employee’s death. It is compulsory for all workers employed by companies with more than 20 staff. Employers must apply for the fund on behalf of their workers.

The employee is required to contribute 22 percent of their salary to the EPFO, which is automatically deducted by the employer.

Since October 2010, all foreigners employed in India have been subject to the terms of the EPFO under the category of “international workers”

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Explanation:

Employees’ Provident Fund-

The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment that administers social security regulations.
The EPFO covers pensions and survivors’ benefits in the event of an employee’s death. It is compulsory for all workers employed by companies with more than 20 staff. Employers must apply for the fund on behalf of their workers.
Since October 2008, all foreigners employed in India have been subject to the terms of the EPFO under the category of “international workers”.
The employee is required to contribute 12 percent of their salary to the EPFO, which is automatically deducted by the employer. Employers must match this 12 percent contribution.
Employers are legally required to deduct these contributions and remit them to the EPFO.
Tax-free interest is earned on contributions made to the fund at a specified rate, which is updated regularly by the government.