EPF (Employee Provident Fund): Calculation, Benefits, and Comparison

What is EPF? EPF (Employee Provident Fund) is a savings scheme mandatory for salaried employees in India, managed by EPFO (Employees Provident Fund Organisation). Eligibility and Applicability Employers with 20 or more employees must register with EPFO. Employees earning up to INR 15,000 per month are automatically enrolled.

Withdrawal Eligibility Retirement: Full withdrawal at age 55; partial from age 54. Job Change: 75% after one month of unemployment; full after two months. Taxation of EPF Contributions deductible under Section 80C. Interest on contributions above INR 2.5 lakhs annually taxable.

Current EPF Interest Rate 8.25% for FY 2023-24, credited annually on April 1st. Interest earned is tax-free during employment. EPF Forms Essential for activities like nomination, withdrawal, and pension benefits.

Comparison with Other Investments Returns: EPF offers 8.25% with no lock-in period. Risk: Low risk compared to ELSS, FDs, NSC, NPS, and PPF. Understanding EPF helps in leveraging its benefits for long-term financial security and tax savings.