INSUBCONTINENT EXCLUSIVE:
EPF investments are meant for salaried individuals.Employees' Provident Fund (EPF) and Public Provident Fund (PPF) are two types of
EPF is a mandatory contribution from the salary of an individual that every organization with more than 20 employees has to deduct
On the other hand, PPF is an optional investment avenue with income tax benefits
EPF is offered by retirement fund body EPFO or Employees' Provident Fund Organisation while PPF is offered by banks and post offices
Public Provident Fund (Amendment) Scheme, 2016 was introduced by the National Savings Organization in 1968 to mobilize small savings.1
EPF investments are meant for salaried individuals
A PPF account, on the other hand, can be opened by any resident Indian individuals, who may be salaried or non-salaried
However, it cannot be opened by Hindu Undivided Families or HUF.2
In case of EPF, a subscriber contributes 12 per cent of his/her monthly salary towards EPF kitty
An equal share of 12 per cent is paid for by the employer
Out of the employer's share 8.33 per cent is invested in Employees' Pension Scheme or EPS, also run by EPFO, while the balance is invested
EPF account can be closed while quitting job permanently
It can also be transferred while changing companies till retirement
The PPF account, on the other hand, matures in a period of 15 years
However, on application by the subscriber, it can be extended for one or more blocks of five years each.5
done every year from the seventh financial year from the year of opening account.Get the latest election news, live updates and election
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