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

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