PPF (Public Provident Fund) vs EPF (Employees' Provident Fund)

PPF vs EPF : Difference, Comparison, Interest Rates, Benefits & Which is Better

Last Updated : May 29, 2019

PPF, a statutory scheme by the central government, started with the objective of providing old age income security to self-employed individuals and workers from unorganised sectors. While EPF is a retirement benefit applicable only for salaried employees. It is a fund to which both the employee and employer contribute 12 per cent of the former's basic salary amount each month. This percentage is pre-set by the government.

PPF (Public Provident Fund)EPF (Employees' Provident Fund)
PPF scheme was introduced by the Ministry of Finance in the year 1968.EPF scheme was introduced under the Employees Provident Funds and Miscellaneous Provisions Act 1952.
Objective of PPF scheme is to providing old age income security to self-employed individuals and workers from unorganised sectors.EPF is a retirement benefit applicable only for salaried employees. It is a fund to which both the employee and employer contribute 12 per cent of the former's basic salary amount each month. This percentage is pre-set by the government.
Current PPF interest rate is 8%.Current EPF interest rate is 8.65%.
PPF investment gives you a full tax deduction under section 80C. Means there is no tax applicable on the maturity amount in this option. The tax deduction for these investments is of EEE category.EPF investment also qualifies for deduction under Section 80C. Withdrawal from an EPF amount is subject to tax if it is carried out within 5 years of employment with the same employer.
From PPF account one can withdrawn total money only on maturity. Government announced relief to withdrawn money before maturity only for medical emergency and for child education.In EPF amount is paid at retirement or at resignation time. In case of job change amount can be transferred from old employer to new one.
In PPF, one can avail loan from 3rd financial year up to 6th financial year.In EPF, one can withdrawn money for personal use by reason and document declaration.
In PPF, only your investment will be counted.In EPF, your employer will contribute funds same as your's contribution. Contribution of both is 12% of basic salary. So it's double benefit in EPF.
In PPF, account holder can't withdraw funds until it's maturity.An EPF holder can withdraw the amount for personal needs anytime by providing necessary documents.
A PPF account can be opened by resident Indian individuals, salaried and non-salaried individuals.EPF is only for salaried individuals.
Any earning person may open PPF account on behalf of his/her minor children and can make total contribution up to Rs. 1,50,000 per financial year.In EPF, there is no facility to open account on behalf of anyone.
PPF interest rates are decided every quarter by Ministry of Finance.EPF Interest rates are decided by the Government every year.
PPF holder can invest minimum Rs.500 and maximum is Rs.1,50,000.In EPF total 24% amount of basic salary will be deposited. 12% contribution from both employee and employer will be deposited.
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