EPFO Update: Employee Provident Fund will get more benefits than the PPF scheme, know full details


If you are investing in EPF and PPF, do you know that in which you will get more benefits? If you do not know, then you are being given information here. Which scheme will be better for you to invest in EPF or PPF scheme? A non-constitutional organization called the Employees' Provident Fund Organization (EPFO) encourages employees to save money separately for their retirement.

EPF is the main scheme under the Employees' Provident Fund and Act, of 1952. In this scheme, EPF is funded by 12% of the employee's basic salary and dearness allowance from both the employee and the employer. When the employee retires, they get a lump sum amount which includes interest on both self and employer's contribution. The interest rate on deposits in EPF is currently 8.15 per cent per annum.


At the same time, PPF is one of the most preferred long-term savings and investment programs, because it also provides the benefit of tax exemption along with security, and better returns.

Difference between EPF and PPF
When you leave your job, you can withdraw money from your EPF account, however, the amount deposited in PPF cannot be withdrawn until the account reaches maturity, i.e. full 15 years from the date of investing in it. It takes years.

Benefits of Employees Provident Fund (EPF)
money-back guarantee
tax exemption
best long-term savings plan
The interest on the EPF fund is compounded annually.
Full guarantee of financial security
Disadvantages of Employees Provident Fund (EPF)
Returns are limited in this scheme
early withdrawal penalty
EPF contribution is difficult
After moving to the smallest company, interest in EPF stopped.
EPF does not match the long-term returns of MF or NPS.
lock-in period
Benefits of Public Provident Fund (PPF)
Government-Backed Savings Scheme

profit is guaranteed
Partial withdrawal is allowed
Disadvantages of Public Provident Fund (PPF)
Lower interest rate than EPF
15 years lock-in-period
Maximum deposit limit fixed i.e. Rs 1.5 lakh
Premature withdrawal rules strict
Premature closure is not allowed.

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