difference between epf gpf & ppf

8/6/2019 Difference Between EPF GPF & PPF

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DIFFERENCE BETWEEN EPF, GPF AND PPF

EPF- Employees Provident FundGPF - General Pension FundPPF - Public Provident Fund

GPF - General Provident Fund which is for the Government Employees

PPF - Individuals can save to a maximum of Rs.60000/- in a year in the account.Account can be maintained in a Post Office.

EPF - Employees Provident Fund for Private sector where 12% of Employees share and12 % of Employer's share of Basic Salary + DA is deducted and remitted to PFAuthorities

PF vs PPF: What's the difference ?

1. What is PPF and PF?

EPF/ PF (Employees Provident Fund / Provident Fund)

The Employee Provident Fund, or provident fund as it is normally referred to, is aretirement benefit scheme that is available to salaried employees.

Under this scheme, a stipulated amount (currently 12%) is deducted from the employee'ssalary and contributed towards the fund. This amount is decided by the government.

The employer also contributes an equal amount to the fund.

However, an employee can contribute more than the stipulated amount if the schemeallows for it. So, let's say the employee decides 15% must be deducted towards the EPF.

In this case, the employer is not obligated to pay any contribution over and above theamount as stipulated, which is 12%.

PPF (Public Provident Fund)

The Public Provident Fund has been established by the central government. You canvoluntarily decide to open one. You need not be a salaried individual, you could be aconsultant, a freelancer or even working on a contract basis. You can also open thisaccount if you are not earning.

Any individual can open a PPF account in any nationalised bank or its branches that

handle PPF accounts. You can also open it at the head post office or certain select postoffices.

The minimum amount to be deposited in this account is Rs 500 per year. The maximumamount you can deposit every year is Rs 70,000.

2. What is the return on this investment?

EPF: 8.5% per annum


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To find out the details, you will have to talk to your employer and then get in touch withthe EPF office (your employer will help you out with this).

PPF

You can take a loan on the PPF from the third year of opening your account to the sixthyear. So, if the account is opened during the financial year 1997-98, the first loan can betaken during financial year 1999-2000 (the financial year is from April 1 to March 31).

The loan amount will be up to a maximum of 25% of the balance in your account at theend of the first financial year. In this case, it will be March 31, 1998.

You can make withdrawals during any one year from the sixth year. You are allowed towithdraw 50% of the balance at the end of the fourth year, preceding the year in whichthe amount is withdrawn or the end of the preceding year whichever is lower.

For example, if the account was opened in 1993-94 and the first withdrawal was madeduring 1999-2000, the amount you can withdraw is limited to 50% of the balance as onMarch 31, 1996, or March 31, 1999, whichever is lower.

If the account extended beyond 15 years, partial withdrawal -- up to 60% of the balance

you have at the end of the 15 year period -- is allowed.

Courtesy : rediff.com

difference between epf gpf & ppf

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