Read On To Find Out The Difference Between EPF, VPF, And PPF

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Retirement planning is one of the important topics discussed among people. It becomes very difficult to choose as there are various investment options such as Mutual Funds, Equity, ULIPs, NPS, Post office schemes, PPF, EPF Pension Plans etc. The Youngsters prefer EPF, VPF, and PPF as the best alternative rather than all other options for investment/retirement.

Employee Provident Fund

This provident fund provides financial security and stability in future. The employees have to save a small fraction of their salaries every month and this fund can be used at the time of retirement. In this provident fund, the employee registered under the Employees’ Provident fund Organization (EPFO) has to give 12% of their Basic + Dearness Allowance.

The employee can either give 12 percent of their Basic Allowance or 12 percent of their Dearness Allowance. In this fund, the employer has to contribute the same amount of money as given by the employee. Employers have to participate in the EPF if a company has more than 20 employees in it and it is also necessary for the workers whose basic salary is more than 6,291. The interesting feature about EPF is that it is totally risk-free and the best investment option for retirement.

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Voluntary Provident Fund

The employee can give any amount of his/her salary to the Provident fund account. In this provident fund, the employee has to contribute more than 12 percent of their basic salary. But, the employer doesn’t have to contribute any amount of money towards Voluntary Provident Fund. An employee can contribute 100 percent of his/her basic salary in this provident fund. The interest will be same as that of Employee Provident Fund and there is no separate account for Voluntary Provident Fund.

Personal Provident Fund

It is a government managed fund which has an aim to provide financial security to the self-employed/non-salaried employees. Anyone can contribute to this fund as it is completely risk-free and the person investing in Personal Provident Fund will also get assured returns.

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The major benefit of opening a PPF account is that the non-salaried employees are also eligible for opening this fund. But, in the case of VPF and EPF scheme, only salaried employees are eligible for it.


In the case of Personal Provident Fund, it is maintained for a minimum of 15 years and early withdrawal is possible under some terms and conditions. If someone wants to extend the time period then it can be extended for another 5 years. In the Voluntary Provident Fund, the money can be conveniently withdrawn by the employee but if the money is withdrawn 5 years before the completion of the service then that amount will be taxed.


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