Comparison guide
EPF vs PPF — Salaried Person's Decision Guide
If you have to choose, EPF goes first because of the employer match. PPF is the supplementary lever for the 80C ceiling.
// why epf wins on free money
Your 12% of basic+DA is matched by your employer, effectively doubling your contribution. That match alone produces a 100% first-day return — no other instrument can do that.
// where ppf beats epf
PPF is fully voluntary and accessible to self-employed and homemakers — categories shut out of EPF. PPF also offers a clean 15-year lock-in with predictable rules, while EPF behaviour changes with employment continuity.
// optimal allocation
Salaried investor in 30% slab: max EPF (12% mandatory) + VPF if affordable, then top up PPF until 80C is fully claimed. Self-employed: PPF + ELSS to fill the ₹1.5 lakh 80C envelope.
// frequently asked questions
If you can sustain higher EPF, VPF gives the same 8.25% rate as EPF — higher than PPF's 7.1% — and is more liquid. However, post Budget 2021, interest on employee contribution (EPF+VPF) exceeding ₹2.5 lakh/year is taxable.