Difference between GPF, EPF, and PPF - Eligibility, Tax Benefits & More

GPF (General Provident Fund), EPF (Employees’ Provident Fund), and PPF (Public Provident Fund) are popular long-term savings schemes in India focusing on financial security and retirement planning. While all three serve as provident funds, they differ significantly in terms of eligibility, contribution rules, tax benefits, and accessibility. Understanding these differences helps investors make informed decisions aligned with their employment status and financial goals.

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General Provident Fund (GPF)

GPF is a government-managed savings scheme exclusively for government employees. Contributions range from a minimum of 6% up to 100% of the basic salary. The fund offers a fixed interest rate set by the government, currently 7.1% per annum, compounded yearly. Funds are locked until retirement (usually age 58), but partial withdrawals are allowed for specific needs such as medical emergencies, education, or buying household items. Contributions, interest earned, and final payments are fully tax-exempt under Section 80C of the Income Tax Act.

Public Provident Fund (PPF)

PPF is open to all Indian residents and also to minors through their guardians. It is a voluntary scheme primarily aimed at long-term savings with government-backed safety. The tenure is 15 years, extendable in blocks of 5 years. Annual contributions can be between Rs 500 and Rs 1.5 lakh. The interest rate is currently around 7.1% compounded annually. PPF contributions qualify for tax deductions under Section 80C, and both the interest earned and maturity proceeds are fully exempt from tax.

Employees’ Provident Fund (EPF)

EPF is designed for salaried employees working in companies with over 20 employees. Both employee and employer contribute 12% of the basic salary plus dearness allowance each month. The employer’s contribution is split between EPF and EPS (Employees’ Pension Scheme). EPF interest rates are typically higher than GPF and PPF, currently about 8.25% per annum. Account holders can withdraw funds after 5 years without tax liability; premature withdrawals may be taxable. EPF provides added benefits like pension and insurance coverage

Eligibility Criteria

General Provident Fund (GPF) Eligibility

• GPF is a retirement savings plan created specially for government employees in India. All permanent government employees are eligible for GPF right from the time they join service. Temporary government employees can subscribe to GPF after completing one year of continuous service, and even re-employed retired government pensioners can open a GPF account.​
• Employees who have joined government service on or after January 1, 2004, are usually not covered by GPF but by the National Pension System (NPS) instead.​
• GPF is managed through official channels, and the account matures at retirement. Withdrawals from GPF are allowed for special needs such as medical emergencies or children's education, once the employee qualifies under the rules.​
• If an employee leaves government service, the total balance in GPF can be withdrawn without waiting until retirement

Public Provident Fund (PPF) Eligibility

• PPF is designed for all Indian citizens who want to save for the long term. Any resident above 18 years can open a PPF account. Guardians can open PPF accounts for their minors, but each person is allowed only one account in their name.​
• Even housewives, self-employed people, and students can invest in PPF, there is no employment condition. PPF can be opened at various banks and post offices, ensuring easy access for everyone across India.​
• Joint accounts are not allowed in PPF, but the account can be transferred between eligible banks and post offices across the country. Foreign nationals and NRIs cannot open a PPF account.

Employees’ Provident Fund (EPF) Eligibility

• EPF is basically meant for employees working in private or public sector organizations that have 20 or more employees. Anyone between the ages of 18 and 54 can join EPF if employed in eligible organizations.
• The EPF membership becomes compulsory if the basic salary plus dearness allowance is up to Rs 15,000 per month; those earning more can opt in voluntarily. Employers are responsible for registering their eligible employees under EPF.​
• Even organisations with less than 20 employees can join the EPF scheme on a voluntary basis, but the rules differ slightly. People who change jobs can transfer their EPF balance to the new company by updating their Universal Account Number (UAN).

Contribution Details

• Contribution GPF

Government employees contribute a minimum of 6% of their basic salary to the General Provident Fund. Contributions can be as high as 100% of the salary, as decided by the subscriber. Contributions are deducted monthly and must stop three months before retirement. The fund earns a fixed government interest rate, providing a safe and steady return.​

• Contribution PPF

Public Provident Fund allows individuals to contribute flexibly between Rs 500 and Rs 1.5 lakh annually. Deposits can be made monthly or in lump sums throughout the financial year. This scheme is popular for its tax benefits and long-term investment security with an interest rate set by the government.​

• Contribution EPF

Employees and employers both contribute 12% of the employee’s basic salary plus dearness allowance to the EPF. The employer’s contribution includes a portion toward the Employees’ Pension Scheme. Firms with fewer than 20 employees may have some exemptions, but most salaried workers fall under this mandatory scheme.

Tax Benefits

General Provident Fund (GPF):

GPF enjoys the Exempt-Exempt-Exempt (EEE) status, meaning contributions, interest earned, and withdrawals at retirement are all tax-free. Employee contributions up to Rs 1.5 lakh per year qualify for deduction under Section 80C of the Income Tax Act. However, if contributions exceed Rs 5 lakh in a financial year, special rules apply where excess contributions are taxable, requiring two separate GPF accounts. Overall, GPF is a very tax-efficient savings option for government employees.​

Public Provident Fund (PPF):

PPF contributions are eligible for tax deduction under Section 80C up to Rs 1.5 lakh annually. The interest accrued on the PPF balance and the maturity amount are fully exempt from income tax. This triple tax benefit (EEE) makes PPF a popular and highly attractive savings scheme among Indian residents for long-term wealth building with government-backed safety.​

Employees’ Provident Fund (EPF):

EPF contributions by employees are also eligible for deduction under Section 80C up to Rs 1.5 lakh per year. Employer contributions are exempt from tax up to 12% of salary. The interest earned and withdrawals after 5 years of continuous service are tax-free. Withdrawals before 5 years may be taxable to discourage early withdrawal and encourage long-term savings. EPF, therefore, provides significant tax benefits along with retirement savings and pension benefits

GPF vs PPF vs EPF: Quick Comparison

Feature

GPF

PPF

EPF

Eligibility

Government employees only

All Indian residents

Private sector employees & some government employees

Contribution (% Salary)

6% to 100% of basic salary

Rs 500 - Rs 1.5 lakh yearly

12% employee + 12% employer

Interest Rate (approx.)

7.1% p.a.

7.1% p.a.

8.25% p.a.

Lock-in Period

Till retirement (58 years)

15 years, extendable

Till retirement (58 years)

Tax Benefits

EEE: Contributions, interest & withdrawal tax-free

Tax-free under Section 80C

Tax benefits under Section 80C, post 5 years withdrawal is tax-free

Withdrawal Flexibility

Permitted under special conditions

Allowed after 5 years

Allowed after 5 years, for emergencies beforehand

Conclusion

Choosing between GPF, EPF, and PPF depends entirely on your employment status, financial goals, and long-term savings plan. Each scheme helps you build a retirement corpus, but they differ in eligibility, contribution rules, interest rates, and tax benefits.

Government employees naturally rely on GPF for steady, assured, and tax-efficient savings. Salaried private-sector employees benefit the most from EPF, which builds long-term retirement wealth through compulsory monthly contributions. Meanwhile, PPF is a flexible, safe, and tax-free option open to all Indian residents, making it ideal for anyone looking to grow their money securely over the long term.

The smartest approach is to choose the fund that aligns with your job profile and complement it with additional investments. Along with GPF, EPF, or PPF, you can also explore diversified market-linked products to accelerate wealth creation and strengthen your overall financial portfolio.