Which of the following is a deduction in the computation of salary of an employee?

Provident Fund

The correct answer is option 2- Provident Fund.

Provident Fund is a deduction in the computation of salary of an employee.

Provident Fund (PF) : It is a statutory deduction, as part of social security. It is decided by the Government under the Provident Fund Act and is computed as a percentage of (Basic Pay + Dearness Pay, if applicable).

OTHER OPTIONS

• Dearness Pay (DP) : It is that portion of Dearness Allowance, which has been declared and deemed to have been merged with the Basic Pay.
• House Rent Allowance (HRA) : It is an amount paid to facilitate employee in acquiring on lease of residential accommodation.
• Transport Allowance (TRA) : It is an amount to facilitate commuting to the the place of work, i.e. Delhi, Bhopal, Haridwar, etc.