Some companies are paying only 10% of their contribution as EPF, why?

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%

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