EPF (Employee Provident Fund)

EPF (Employee Provident Fund)

  • EPF is mandatory for salaried employees working for companies with more than 20 employees
  • Under EPF rules, you need to contribute 12% of your Basic pay + DA to EPF
  • The employer matches this EPF contribution
  • You have option to put up to 100% of Basic pay + DA to EPF. This is known as Voluntary Provident Fund (VPF). The employer generally does not match your VPF contribution
  • Interest rate : 8.55% (FY 2017-18)


  • The interest earned on EPF/VPF is Tax Free
  • Can take loan against EPF and also do partial withdrawal under certain conditions
  • Convenient to invest as the amount is directly deducted from salary


  • Money is locked till your retirement
  • The EPF interest rates are market linked and set by EPFO every year
  • The withdrawal of EPF takes time


  • You can opt for VPF by giving a request to your company at the start of every financial year
  • Only your contribution in EPF and VPF is considered for Tax Deduction
  • If you withdraw your EPF before 5 years the amount is taxable and also the earlier tax deduction claimed is nulled
  • In case you change your job, you can transfer the previous EPF to your current employer
  • Website http://www.epfindia.com
  • To check EPF balance http://epfoservices.in/epfo/member_balance/member_balance_office_select.php

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