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Employee Provident Fund (EPF) vs. Public Provident Fund (PPF)

Employee Provident Fund (EPF) vs. Public Provident Fund (PPF)

There are different options to save and grow our hard-earned money. Employee Provident Fund (EPF) and Public Provident Fund (PPF) are two simple and easy ways to save money for the future.

Employee Provident Fund (EPF)

Employee Provident Fund (EPF) or Provident Fund (PF) is a savings scheme extended by the government to the employees of the organized sector. Employees Provident Fund Organization (EPFO), a statutory body under the Employees’ Provident Fund Act, declares the EPF interest rate every year.

Interest Rate on EPF

The EPF interest rate for 2020 is currently 8.50%. However, there are news that the Employees’ Provident Fund Organisation (EPFO) may reduce the EPF interest rate for 2020.

Contribution to EPF

The employer and employee are required to contribute a minimum of 12% of the employee’s basic salary and dearness allowance every month to the EPF account.

Only employees of companies registered under the Employees’ Provident Fund Act, can invest in the EPF or PF.

How to check EPF balance

If you are EPF subscriber, you can check the balance by sending a text message if your UAN number is registered with the EPFO. You just need to SMS ‘EPFOHO’ to the number 7738299899 to get your account details. 

Public Provident Fund (PPF)

Public Provident Fund or PPF, a government-supported savings scheme, is extended to all – employed, unemployed, self-employed or even retired.

Who can invest in PPF?

It is not a mandatory scheme but if you choose to start investing in a PPF, the minimum contribution is Rs. 500 and the maximum contribution is Rs. 1.5 Lakhs per year. You can open a PPF account with most of the major banks or post office.

What is the interest rate on PPF?

The government sets a fixed rate of return for the PPF every quarter. The current PPF interest rate 2020-21 for Oct-Dec quarter is is 7.1%.

The monthly interest on PPF is paid on the lowest balance in the PPF account from the 5th to the last day of each month. So, to get interest on your PPF account, it is important to make your contribution before the 5th of every month. 


Comparison between EPF and PPF:

Employee Provident Fund

Public Provident Fund

The employees of the company will be eligible to invest in the EPF if the company is registered under the Employees’ Provident Fund and Miscellaneous Act, 1952.



All Indians, except for NRIs, are eligible to invest in PPF. This includes students, self-employed, employee or retired citizens.
A minimum contribution of 12% of the basic salary and DA. You can increase it voluntarily but the employer need not match it.A minimum contribution of Rs. 500 and a maximum contribution of Rs. 1,50,000
You can close the EPF when you retire or quit your job permanently. You can also transfer your EPF while changing to a new company. You can opt out of EPF only at your first job when you are a fresher and can join the scheme in the future.The PPF is for 15 years. It is extendable after that for an increment of the tenure for 5 years.
The EPF rate of interest is 8.50%The PPF rate of interest is 7.10%
The Employer and the Employee both contribute a minimum of 12% of Basic Salary and DA a month.You contribute or your parent can contribute if you are a minor.
The contribution is tax deductible and the maturity amount is tax-free only after the completion of 5 years.The contribution is tax deductible and the maturity amount is tax-free.
Employees Provident Fund And Miscellaneous Provisions Act, 1952, governs EPF.Government Savings Banks Act, 1873, governs PPF.
You can partially withdraw the money in EPF under certain circumstances.You cannot partially withdraw the money from PPF even if you are unemployed.


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