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
  • Jute
  • Beedi (Beedi factories)
  • Gum
  • Brick  (Brick Clins)
  • Guam