Difference Between GPF, EPF, and PPF

GPF, EPF, and PPF are all saving schemes, but they serve different groups of people. Let’s break down the differences in a way that’s easy to understand.

Quick Definitions

Term	Full Form	Who Can Use It?
GPF	General Provident Fund	Government employees only
EPF	Employees’ Provident Fund	Private-sector salaried employees
PPF	Public Provident Fund	Any Indian citizen (including kids)

Eligibility

Feature	GPF	EPF	PPF
Who can open	Govt employees only	Salaried (non-govt) workers	Anyone (even minors)
Employer needed?	Yes (govt employer)	Yes (registered with EPFO)	No employer needed
Age limit	Active govt service	Employed with PF employer	No age limit

Contribution Rules

Feature	GPF	EPF	PPF
Employee share	Mandatory (6–10% of salary)	12% of basic salary (minimum)	Voluntary (₹500–₹1.5 lakh/year)
Employer share	Govt contributes	Employer matches 12%	None
Lock-in period	Till retirement/resignation	Till retirement/resignation	15 years (extendable)

Interest Rates (as of 2025)

GPF	EPF	PPF
~7.1%	8.15%	7.1%

(Note: EPF interest is generally the highest; PPF is fixed by govt quarterly.)

Tax Benefits

Feature	GPF	EPF	PPF
Section 80C eligible	Yes	Yes	Yes
Tax on interest	No	No (if 5 yrs+)	No
Tax on maturity	No	No	No

All three are EEE (Exempt–Exempt–Exempt), making them excellent tax-saving tools!

Withdrawal Rules

GPF	EPF	PPF
After retirement/resignation	After 2 months of no job OR retirement	After 15 years (partial from 6th year)
Partial withdrawal	Allowed after 10 years	Allowed for marriage, illness, etc.

Summary Table

Feature	GPF	EPF	PPF
Type	Govt employee savings	Salaried employee fund	Open to all citizens
Managed by	Govt department	EPFO (under Labour Ministry)	Govt through banks/Post Offices
Tax benefits	80C + tax-free returns	80C + tax-free if held >5 yrs	80C + fully tax-free
Best for	Govt employees	Salaried individuals	Freelancers, business people, minors

Which One Should You Choose?

• If you’re a government employee → GPF
• If you’re a salaried person in a private firm → EPF
• If you’re a self-employed, business owner, or parent investing for child → PPF

Many people use both EPF and PPF for broader savings and tax benefits.