Does all of my employer 12 percent go into EPF?

No. Only 3.67 percent reaches the provident fund. The remaining 8.33 percent goes to the Employees Pension Scheme, which pays a pension rather than adding to your balance.

Should I choose one over the other?

They serve different purposes. EPF is automatic and carries an employer contribution; PPF is voluntary and available to anyone including the self-employed.

InvestmentretirementIndia only

EPF vs PPF Comparison

EPF against PPF over the same period. They are not alternatives: EPF carries an employer contribution and a higher rate, PPF is voluntary with a fixed limit, and most salaried people should hold both.

Also called: epf vs ppf comparison, provident fund calculator.

EPF corpus

₹98,86,531

₹98,86,531 in EPF against ₹66,58,288 in PPF after 20 years. EPF received ₹46,25,275 including the employer share, PPF ₹30,00,000. EPF pays the higher rate and adds an employer contribution, so it compounds faster on the same money.

PPF corpus

₹66,58,288

Contributed to EPF

₹46,25,275

Contributed to PPF

₹30,00,000

Employer contribution to EPF

₹10,83,265

Both together

₹1,65,44,819

On the comparison

EPF pays the higher rate and adds an employer contribution, so it compounds faster on the same money.

On access

PPF locks for fifteen years with limited partial withdrawal. EPF is tied to employment and withdrawable on exit subject to conditions.

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

EPF takes twelve percent of basic from you and twelve percent from the employer, but only 3.67 percent of the employer half reaches the provident fund; the other 8.33 percent goes to the pension scheme. That split is the detail most comparisons miss. PPF is voluntary up to an annual limit and typically pays a lower rate. Both are exempt at all three stages. The employer contribution means EPF effectively returns more than its rate suggests, which is why the comparison is not really about the rates.

the employer 12 percent splits, with 8.33 percent going to the pension scheme

b: Basic salary

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

twenty years on a 60,000 basic

Monthly basic salary: ₹60,000
EPF interest rate: 8.25%
PPF interest rate: 7.1%
Annual PPF contribution: ₹1,50,000
Years: 20
Annual salary growth: 7%

EPF corpus₹98,86,531

20 x 1.5 lakh

Open this example

no salary growth keeps EPF contributions flat

Monthly basic salary: ₹60,000
EPF interest rate: 8.25%
PPF interest rate: 7.1%
Annual PPF contribution: ₹1,50,000
Years: 20
Annual salary growth: 0%

EPF corpus₹57,46,205

boundary: 60,000 x 12 x 0.1567 x 20

Open this example

Method and limits

What it assumes

The employee and employer both contribute twelve percent of basic, and basic grows at the stated rate.

What it deliberately does not model

The 8.33 percent diverted to the pension scheme produces a pension not valued here.
PPF has a fifteen year lock-in with limited partial withdrawal; EPF is tied to employment.
EPF interest above the statutory contribution threshold became taxable, which is not modelled.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Does all of my employer 12 percent go into EPF?: No. Only 3.67 percent reaches the provident fund. The remaining 8.33 percent goes to the Employees Pension Scheme, which pays a pension rather than adding to your balance.
Should I choose one over the other?: They serve different purposes. EPF is automatic and carries an employer contribution; PPF is voluntary and available to anyone including the self-employed.