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Sunday, January 10, 2016

Difference between EPF and PPF

 

Difference between EPF and PPF

Employees' Provident Fund (EPF) and Public Provident Fund (PPF) are long-term investment options for retirement

 

Employees' Provident Fund (EPF) and Public Provident Fund (PPF) are long-term investment options for retirement. However, there is a crucial difference between the two. The EPF is available only for salaried employees. The employee can contribute 12 per cent of his salary every month in the fund and the employer would also make a matching contribution.

 

The PPF is a statutory scheme of the central government started with the objective of providing old age income security to the unorganized sector workers and self-employed persons. Both schemes offer assured returns. However, the interest rates are revised by the government periodically.

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