Tag: industrial relations, trade unions and social security

Questions Related to industrial relations, trade unions and social security

The contribution paid by the employer is ___ of basic wages plus dearness allowance plus retaining allowance.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. 6%

  2. 7%

  3. 12%(in case of more than 20 employees ) 10%   (in case of less than 20 employees) 

  4. 11%

Show answer
Correct Option: C
Explanation:

The contribution paid by the employer is 12%(in case of more than 20 employees) 10% (in case of less than 20 employees) of basic wages plus dearness allowance plus retaining allowance, according to the EPFO rules.  The contribution of both employer and employee is limited to 10% only.

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

As per the EPFO rules, the contribution rate for both employee and the employer is limited to 12 percent.(in the case of more than 20 employees)- this is a true statement. The contribution of both the employees and employer is limited to 10% only.

There are two major social security plans in India, the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC).

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

There are two major social security plans in India, the Employees Provident Fund Organization (EPFO) and the Employees State Insurance Corporation (ESIC) Social security refers to protection provided by the society to its members against providential mishaps over which a person has no control. Social security schemes are only available to the the employees of the organized sector of India.

India's social security schemes cover the following types of social insurances as ______.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. Pension

  2. Health Insurance and Medical Benefit

  3. Gratuity

  4. All of the above

Show answer
Correct Option: D
Explanation:
India's social security schemes cover the following types of social insurances as:
a) Pension
b) Health Insurance and Medical Benefit
c) Gratuity
Social security refers to protection provided by the society to its members against providential mishaps over which a person has no control. Social security schemes are only available to the the employees of the organized sector of India.

_______ allows for payment of gratuity to employees in any establishment, factory, mine, oilfield, plantation, port, railways, company, or shop employing 10 or more workers.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. Payment of Gratuity Act, 1972

  2. EPF Act 1969

  3. Employee Provident Fund and Miscellaneous Provisions Act 1953

  4. None of the above

Show answer
Correct Option: A
Explanation:
Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees of any establishment or corporate unit be it is private or public only after completion of a qualifying service of 5 years.

Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is _____.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. Rs. 10 lakhs

  2. Rs. 8 lakhs

  3. Rs. 5 lakhs

  4. Rs. 3.5 lakhs

Show answer
Correct Option: A
Explanation:

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees. 

A _______ is a tax-efficient way to save for your retirement.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. pension

  2. income

  3. fund

  4. NPS

Show answer
Correct Option: A
Explanation:

Pension is a type of after retirement payment to the retired employees of the business which is cut from the salary every year and is not taxable under the income tax act, 1961. 

The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is ___________________.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. Completion of 2 years of Service

  2. Completion of 3 years of Service

  3. Completion of 4 years of Service

  4. Completion of 5 years of Service

Show answer
Correct Option: D
Explanation:
Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees only after completion of a qualifying service of 5 years.

What is the qualifying service to claim gratuity?

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. 15 years

  2. 10 years

  3. 5 years

  4. No such prescription

Show answer
Correct Option: C
Explanation:

Gratuity is a type of after service payment to the employees who have fulfilled certain conditions of the job. According to the Payment of the Gratuity Act, 1972 the maximum amount of gratuity which can be paid to a employee is 10 lakh rupees only after completion of a qualifying service of 5 years. 

Unorganized sector in India does not have an opportunity to participate in the social security schemes offered in India.

commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Unorganized sector in India does not have an opportunity to participate in the social security scheme offered in India- this is a true statement. Social security refers to protection provided by the society to its members against providential mishaps over which a person has no control. Social security schemes are only available to the the employees of the organized sector of India.