👴 Retirement Planning 7 min read·Updated 1 July 2026
EPF: Employees' Provident Fund — Rules, Interest and Withdrawal
The Employees' Provident Fund is a mandatory retirement savings scheme in India. You and your employer each contribute 12% of your basic salary — and it compounds tax-free.
Contribution split
- Employee: 12% of Basic + DA → EPF account.
- Employer: 3.67% to EPF + 8.33% to EPS (pension), capped on ₹15,000 basic in most cases.
- Interest: reset annually, currently around 8.25% p.a.
Withdrawal rules
- Full withdrawal on retirement (age 55+) or two months of unemployment.
- Partial withdrawal allowed for home purchase, education, marriage or medical needs.
- TDS applies if PF is withdrawn before 5 years of continuous service.
EPF vs PPF
EPF is employer-linked and mandatory for salaried employees; PPF is voluntary and open to everyone. Both are EEE and both are excellent long-term. Do both if you can afford it.
Frequently asked questions
Should I withdraw EPF when changing jobs?+
No. Transfer it. Withdrawing breaks the compounding and can trigger tax.
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