What percentage of the employer’s contribution goes towards the Pension Fund?

The correct answer is the percentage that represents the allocation of the employer's contribution to the Pension Fund within the Employees' Provident Fund (EPF) scheme. In the EPF structure, the employer contributes a total of 12% of the employee’s salary, and out of this contribution, 8.33% is specifically allocated towards the Pension Fund. This allocation is a crucial aspect of the EPF, as it helps in building the pension for the employees after retirement. Understanding this percentage is vital for both employees and employers in managing retirement benefits effectively.

Other percentages provided in the options do not accurately reflect the specific portion of the employer's contribution designated for the Pension Fund. For instance, 6.67% and 10% do not align with the standard allocation structure set forth by EPF, and while 12% represents the total employer contribution, only 8.33% is specifically directed to the Pension Fund. It's important for individuals engaged in EPF-related practices to familiarize themselves with these percentages to ensure appropriate financial planning and compliance.