Some companies are paying only 10% of their contribution as EPF, why?
You might have heard about some companies paying only 10% of the contribution as EPF rather than 12%. Have you ever found out the reason behind that?
EPF act allows the below companies to pay only 10% instead of usual 12% in the below scenarios
- A company or an organization in which less than 20 people is employed
- A sick company which has been declared such by BIFR (Board for Industrial Finance and Reconstruction)
- Any company which has accumulated losses exceeding the net worth of the company
- Companies in following industries like
- Beedi (Beedi factories)
- Brick (Brick Clins)