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What is the Difference between EPF, GPF & PPF; Know Eligibility, Interest Rates and Withdrawal Process

Pronami Chetia
Pronami Chetia

The slice of your monthly salary that is deducted every month is contributed to your PF (Provident Fund) account that works as a pension when you are unable to work or after your retirement. There are three major provident fund accounts available in the country, Employees' Provident Fund (EPF), Public Provident Fund (PPF) account and General Provident Fund (GPF).

In these provident fund accounts, a subscriber invests a part of his/her salary for a certain period of time and avail the amount on maturity. Interest rates on these schemes are revised according to notifications issued from time to time. 

The basic difference between EPF, GPF and PPF and their Withdrawal process- 

EPF (Employees' Provident Fund) - If you are working in a private company or corporate sector, you may often go through this term. According to the government’s rule, companies employing more than 20 people have to compulsorily make contributions towards the EPF. The amount which deducted from your monthly salary is contributed to your EPF account which worked as a saving option for you. You can withdraw it after two months of resignation from the respective company. 

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GPF (General Provident Fund) - GPF is available only for government employees. All government employees who joined service on or before December 31, 2003, contribute to GPF. An officer/employee contributes 6 percent of his/her basic salary with an equal contribution from the Government. GPF Account matures at the time of retirement.

PPF (Public Provident Fund)-  PPF account is open for all Indian residents including the both. The Public Provident Fund account comes with a maturity period of 15 years.

Interest Rates

GPF-   The government staff will now get a 7.9 percent interest on the contribution made during the July-September period according to a recent report. The new interest rate of GPF will cover the General Provident Fund (Central Services), the Contributory Provident Fund (India), the All India Services Provident Fund, the State Railway Provident Fund, the General Provident Fund (Defence Services), the Indian Ordnance Department Provident Fund, the Indian Ordnance Factories Workmen’s Provident Fund, the Indian Naval Dockyard Workmen’s Provident Fund, the Defence Services Officers Provident Fund and the Armed Forces Personnel Provident Fund. 

EPF-  All the subscribers of Employees' Provident Fund Organisation (EPFO) get an interest rate of 8.65 percent on their Employees' Provident Fund (EPF) deposit.  

PPF-   PPF has been fixed at 7.9 percent interest rate for the current quarter.  

How you can partially Withdrawal your PF? 

According to government rules, partial withdrawal from EPF accounts is allowed for purchase/construction of a house, repayment of a loan, non-receipt of the wage for two months, the marriage of self/daughter/son/brother, for medical treatment of family members, etc. GPF also allows partial withdrawal at certain conditions. Partial withdrawal is allowed in PPF account every year from the seventh financial year from the year of opening your account.  

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