Question
What is the employee contribution under EPF scheme?
Solution
For most employees, the contribution rate is 12% of the fixed wages of an employee, excluding HRA. The employer needs to contribute equally to the EPF account.  There are certain situations when a 10% rate is applicable. For instance, if a company meets the following criteria: 1.   Has employed less than 20 employees 2.   Has suffered losses more than its entire net worth 3.   Belongs to beedi, brick, jute or guar gum industry 4.   Is a sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction (BIFR)
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