The following table highlights the points of difference between Public Provident Fund and Employees Provident Fund:
|
Basis |
EPF |
PPF |
|
Eligibility |
Employees working in an organisation with more than 20 workers. |
Any Indian citizen above 18 years of age. |
|
Return |
8.65% |
8% |
|
Contribution |
Mandatory contribution made by the employer as well as employee - 12% of salary + Dearness Allowance |
Minimum contribution- Rs. 500 per annum Maximum contribution- Rs.1,50,000 per annum |
Employees Provident Fund is clearly a better option than Public Provident Fund for employees, since the contribution is made by the employer as well. For others, Public Provident Fund is an equally good investment option.
