EPF vs PPF – Employee Provident Fund vs Public Provident Fund

Differences between EPF and PPF or EPF vs PPF [Employee Provident Fund vs Public Provident Fund]…..
India is a developed country which seeks to provide better livelihood for its citizens. The country his highly populated and has 29 states where each has its own complete governorship. The country also holds a lot of self-help schemes from both private and public sector.

Employee provident fund

EPF is government oriented idea which covers all employed/salaried people. Organizations or companies in both sectors register their employees who have attained the 20 members. Those with fewer employees can also register the employee.

Employee provident fund (EPF) was designed as a saving scheme where employees will benefit at the retirement age. The EPF gains interest according to the EPFO and country rates.  The rates are ranging at 8.55% in the current provision. Here the employer and employee contribute to the scheme where the amount should sum up to 12%. This amount is given every month and starts as soon as one is employed.

Public provident fund

PPF is also a popular scheme in the Indian country and hold vast number of people. PPF is government formulated but has differences compared to the EPF. The scheme unlike the EPF is open to all citizens whether employed, self-employed or not employed at all. Here the retired citizens can join the scheme regardless of the age.


The PPF scheme is not a mandatory saving scheme as members don’t have a specified amount to give. Taking the EPF where they have fixed amount of 12%. The PPF allows minimum amount of RS 500 and maximum amount of RS.1,50,000/-.

The Indian government also gives a fixed rate return unlike the EPF which has rates according to the financial year. This account can be opened by any registered bank or the post office anywhere in the country.  The current tax rates range in the 8% mark and remain fixed unless a change from the government. PPF has no controlling body like EPFO and members can register at free will.

Qualities for both EPF vs PPF

  • Safety

We all have the fear of losing, the scheme are both safe in terms they are government oriented. The EPF and PPF stand almost at the same levels of safety. Members are sure to get their savings when the tenure of maturity is reached. Though the EPF has an EPFO body backing it up and the funds going to the equities which is a bit of risk if any fails. The India government ensures the schemes are well funded and employees get their share at retirement.


The schemes have a slight difference in terms of liquidity. Here the EPF allows members to withdraw before the retirement age. If the employee is not employed for one month, they get 75% of the share and if this goes beyond the time frame mention the can get more or whole amount saved.

This applies if you withdraw before the 5 years period is done. The account stop working after three year duration unlike the PPF one can only withdraw after 5 years are done. However, this makes no difference as the schemes benefits employees and their families.