Provident Fund (PF) is calculated as a percentage of which component(s)?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Basic Pay + Dearness Pay (if applicable).
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).