Question

Which of the following statements is not correct about the employee provident fund?

[1 mark]

• A. It is a compulsory government managed retirement scheme.
• B. Availing salary in lieu of accumulated leaves at the time of retirement.
• C. Both employer and employee make monthly contributions.
• D. On retirement, death, or resignation, the accumulated amount of standing credit in the fund is paid to the employee.

Answer 1

The correct option is B Availing salary in lieu of accumulated leaves at the time of retirement.

EPF is a welfare scheme brought into force to secure a better future for employees. It is a statutory benefit available to employees post retirement or when they leave the service. Availing salary in lieu of accumulated leaves at the time of retirement is the encashment of leaves, and it is not associated with EPF.