Employees Provident Fund Organization (EPFO) has stipulated 12% contribution to be made by both the employer and employee of any organization. But this contribution rate will be 10% based on some certain conditions described below
10% PF Rate is allowed under these conditions
- 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
- Jute
- Beedi (Beedi factories)
- Gum
- Brick (Brick Clins)
- Guam
For all the above companies PF Contribution can be at 10% instead of 12%