What is the difference between EPF, GPF and PPF, at what interest rates? Know here for your benefit


All schemes launched by the government on behalf of the Reserve Fund have the same goal: the worker can receive financial assistance after retirement. There are three types of reserve funds. First Officer Reserve Fund (EPF), State Reserve Fund (PPF) and General Reserve Fund (GPF). These three are for different classes. In all these savings fund schemes, a small portion of income must be deposited, which later comes in as a significant amount. Find out here what is the difference between EPF, GPF and PPF and how much percentage is available in which scheme.

Employee Reserve Fund (EPF)

This is for those employees who do private work. In a company with more than 20 employees, part of the salary of the employees of this company is deposited in the EPF. Its regulator is EPFO. Under the EPF, 12 percent of base salary and DA is deposited into the PF. The employer also contributes this part. The benefit of compound interest is available on money deposited in the EPF. Of the employer’s share, 8.33 percent goes to the Employee Pension Scheme (EPS) and the remaining 3.67 percent is invested in the EPF. After retirement, employees receive PF money as a lump sum, and EPS money as a pension. An 8.1 percent rate is currently available on the EPF. Which is more than all savings schemes.

General Reserve Fund (GPF)

The GPF scheme is for government employees only. At the same time, all temporary workers who have worked continuously for one year for the state, all permanent workers, all pensioners hired after retirement can open an account. At the same time, civil servants contribute at least 6% of their salary, and at retirement they receive a lump sum instead. The GPF is administered by the Department of Pensions and Retirement Welfare of the Ministry of Human Resources, Public Complaints and Pensions. The “More” feature of this account is the most special. At the same time, the employee can, if necessary, withdraw a fixed amount from the GPF account and deposit it later. There is no tax on this either. The GPF currently provides 7.1 percent.

State Reserve Fund (PPF)

Any Indian can open a PPF account and invest in it as they wish. A minimum of 500 and a maximum of 1.5 lakh can be contributed to PPF annually. The PPF account is opened for 15 years, and at the same time it is also provided with an interest benefit. Can be opened at any post office or bank. PPF interest is calculated quarterly. Currently, 7.1% per annum is available on PPF. If the client wants to renew it even after 15 years, then it can be renewed in blocks of five years each.


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