Savings

What is EPF?

Employees' Provident Fund

EPF is a mandatory retirement savings scheme for salaried employees in India, where both the employee and employer contribute a percentage of basic salary every month. The corpus earns interest set annually by EPFO and is largely tax-free on withdrawal after 5 years of continuous service.

Employees contribute 12% of basic salary + DA; the employer matches this 12%, but 8.33% of the employer's share (capped at ₹1,250/month) is diverted to the Employees' Pension Scheme (EPS) rather than the EPF account itself.

Always transfer — never withdraw — your EPF balance when changing jobs, to preserve continuity for the 5-year tax-free threshold and your EPS pension eligibility.

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