Difference between EPF and PPF, Employee Provident Fund, Public Provident Fund, What is EPF, What is PPF, Ebizfiling

What are the difference between EPF and PPF?

7 primary differences between EPF and PPF (Public Provident Fund)


Employees’ Provident Fund (EPF) is a retirement benefit programme designed only for those who receive a salary. The company and employee will both make contributions to this plan. The Public Provident Fund (PPF) account, on the other hand, is especially created to provide everyone with income security in old age. This article will emphasises on the Difference between EPF and PPF, “What is EPF (Employee Provident Fund)?”, “What is PPF (Public Provident Fund)?”, and comparison between EPF and PPF.


The main advantage of investing in these plans is that you can start modest with your money and end up retiring with a sizeable corpus of wealth. It’s crucial to understand these programmes before making an investment in either an EPF or a PPF.

What is PPF (Public Provident Fund)?

The Public Provident Fund permits investment from people in all occupations, including those who are employed, self-employed, unemployed, and even retired. Anyone may donate any amount to this investment form, with a minimum need of INR 500 and an annual contribution of up-to INR 1.5 lakh. The government determines the PPF’s set return each quarter. A PPF (Public Provident Fund) account can be opened at the post office or through any of the nation banks.

What is EPF (Employee Provident Fund)?

Employers and employees jointly contribute to the EPF programme. Every month, 12% of your basic pay is contributed by both you and your employer. The Employee Provident Fund Organization, a government agency, is in charge of this programme. According to EPFO regulations, a total of 24% of your basic pay is contributed to the EPF account by both you and your employer. When retiring or moving jobs, you can withdraw the money you have saved in your EPF  (Employee Provident Fund) account.

7 primary differences between EPF and PPF 

Employee Provident Fund (EPF)

Public Provident Fund (PPF)

In EPF Scheme only salaried employee of a company is registered.

In PPF any individual who is a resident indian (excluded HUF) can opt for this scheme.

12 percent of salary that includes basic salary and DA (Dearness Allowance).

On the other hand in PPF scheme minimum amount is INR 500 and maximum limit for investment is INR 1.5 lakh.

The interest rate on investment is 8.50 percent.

The interest rate on investment is 7.1 percent.

The maturity period for EPF is until retirement.

The maturity period for PPF Scheme is 15 years from the date of initial investment.

Contribution is deductible from taxes. Only at the end of the initial five-year period the maturity amount tax-free.

Under Section 80C, the donation is tax-deductible. Additionally, the maturity amount is tax-free.

Employee Provident Fund and Miscellaneous Act, is the governing Act for EPF.

Public Provident Fund Act, is the governing Act for PPF.

Employee and employee contributes equally to the employee EPF Account.

Any individual or a parent in case of minor can contribute to the PPF Account.

Comparison between EPF and PPF

Based on the discussion above, we can say that EPF is more advantageous than a PPF account because, in addition to you, your employer contributes to your EPF account. It is a kind of collaborative contribution to your future. However, such contributions are not permitted in a PPF account.


Furthermore, you can withdraw your EPF funds whenever you need them for personal reasons. However, you cannot do so with a PPF account. You can withdraw funds from your PPF account only after it has reached maturity. Furthermore, the interest rate on an EPF account is higher than the interest rate on a PPF account.

Winding Up

Both schemes are initiatives launched by the government for individuals for there retirement life. The primary difference between these two schemes is that in PPF, anyone who is a resident Indian (excluding HUFs) can invest, whereas in EPF, anyone who is employed in any company, firm, or business can invest.


Suggested Read: GPF Vs EPF Vs PPF

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Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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