How is the Employee Pension Scheme (EPS) funded?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

A

By the employee’s direct contribution
B

Employer contributes 8.33%; government contributes 8.33%
C

10.33% of employer’s EPF contribution diverted to EPS
8.33% of employer’s EPF contribution diverted to EPS

Correct answer

Why this is the answer

The contribution to EPS is 8.33% of the employer’s 12% EPF contribution.

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NISM Series XB- Investment Adviser (Leve…