What Is EPF (Employee Provident Fund)?
EPF is a retirement savings scheme for salaried employees in India. Both employer and employee contribute 12% of basic salary each month.
How EPF Works
12% of your basic salary goes to EPF each month, matched by your employer. The employer's 12% is split: 8.33% to EPS (pension) and 3.67% to EPF. Current EPF interest rate is 8.15% p.a., compounded annually.
EPF Tax Benefits
Employee contribution qualifies for Section 80C deduction (up to ₹1.5L). Interest earned is tax-free up to ₹2.5L annual contribution. Withdrawals after 5 years of continuous service are completely tax-free.
Withdrawal Rules
Full withdrawal allowed after retirement (58 years) or 2 months of unemployment. Partial withdrawal allowed for home purchase, medical emergency, education, or marriage after certain service conditions.