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What is the difference between EPF and PPF?


Employee Provident Fund (EPF): This fund is governed by government bodies EPFO (Employee Provident Fund Organisation). The EPF is opened for salaried people by their employer. Total 24% amount is contributed by employer and employee in this fund. This fund is use as saving plan for retirement of employee.

Public Provident Fund (PPF): This fund is opened by any individual person except Hindu Undivided Family (HUF), NRI. The amount invested in this fund for 15 years. If there is any need of cash arises then the holder of the account has to pay penalty. The Public Provident Fund is open in any bank and post offices. The minimum amount invested in Public Provident Fund (PPF) is Rs. 500. The PPF account facilities provided by bank to its customers to increases the saving habit for future by providing interest on Public Provident Fund account.

Let’s find out the difference between Employee Provident Fund (EPF) and Public Provident Fund (PPF): 

S.No.
Point of differences
Employee Provident Fund (EPF)
Public Provident Fund (PPF)
1.
What is Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
Employee Provident Fund is governed by EPFO (Employee Provident Fund Organisation). In this fund a fixed rate is contributed by employer and employee both.

Public Provident Fund is also governed by government bodies.
The public provident fund account is open in any bank and post office.
2.
What are the interest rate provided by Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
The interest rate given in Employee Provident Fund is 8.55% in March 2018. The interest rate is decided by yearly basis.
The interest rate given in Public Provident Fund is 8% in October 2018 to December 2018. The interest rate is decided quarterly by bank and post offices.
3.
What is the minimum amount invested in Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
The minimum amount invested in employee provident fund is 24% total contribution of employer and employee. It means 12% amount is deducted by employer from employee’s salary and 12% amount is contributed by employer. Out of 12% of employer’s contribution 8.33% amount invested in Employee Pension Scheme and rest are contributed in Employee Provident Fund.
The minimum amount invested in Public Provident Fund is Rs. 500.
4.
What is the maximum amount invested in Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
The maximum amount invested in employee provident fund is 24% total contribution of employer and employee.
The maximum amount invested in Public Provident Fund is Rs. 1, 50, 000.
5.
What is the investment period of Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
The Employee Provident Fund (EPF) is active till the employee work with employer or you can say till the employer pay salary to its employee.
The Public Provident Fund (PPF) is active or invested for 15 years.
6.
When withdrawal the amount invested in Employee Provident Fund (EPF) and Public Provident Fund (PPF)?
In Employee Provident Fund (EPF) the amount withdrawal at the time of retirement or resignation from work.  
In the Public Provident Fund (PPF) half amount can be withdraw after 5 years of investment in the fund. Paying some penalty for withdrawal of amount before maturity period.
7.
Are Employee Provident Fund (EPF) and Public Provident Fund (PPF) tax exempt or not?
The EPF is eligible for tax deduction under section 80C 1961.
The PPF is eligible for tax exemption under section 80C 1961.


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