Question

How does a Provident Fund help permanent employees?

• A. Provident Fund helps in saving a lump sum which is given to the employee as a compensation.
• B. Provident funds help in saving a lump sum which can be used during the time of the employee's working year.
• C. Provident funds help in saving a lump sum which can be used after an employee retires.
• D. Provident funds help in saving a small sum every year which can be withdrawn whenever required.

Answer 1

The correct option is C Provident funds help in saving a lump sum which can be used after an employee retires.

Provident fund is a type of saving scheme which helps in saving a lump sum which can be used after an employee retires. This is carried out by the company and a small sum from an employee's salary is deducted to contribute to this saving scheme.