Comparison guide
PPF vs EPF — Two Tax-Free Retirement Buckets Side by Side
PPF is voluntary and self-driven. EPF is statutory and employer-linked. Most salaried Indians need both — here is how they complement each other.
// eligibility and contribution
EPF applies only to salaried employees in establishments covered by the EPF & MP Act. Employer matches the employee's 12% of basic+DA. PPF is open to every resident Indian and contributions are entirely voluntary, capped at ₹1.5 lakh per year.
// rate of return
EPF is currently 8.25% p.a. (notified annually by the EPFO Board). PPF is 7.1% p.a. (notified quarterly by the Finance Ministry). EPF's higher rate is partly because it is funded by both employee and employer share.
// lock-in & withdrawal
EPF can be withdrawn fully at 58, or earlier under specified conditions (housing, marriage, medical, unemployment for > 2 months). PPF is locked for 15 years with partial withdrawal from year 7.
// frequently asked questions
Yes — they are independent. Most salaried Indians benefit from doing both: EPF builds via salary (employer-matched), PPF adds voluntary tax-free corpus up to the 80C ceiling.