RetirementFinancial Glossary
Provident Fund
Definition
A compulsory savings scheme where both employer and employee contribute a fixed percentage of salary toward retirement. In India, EPF (Employee Provident Fund) is the primary provident fund for organized sector employees. PPF (Public Provident Fund) is the voluntary equivalent open to all Indian residents.
Why It Matters
Provident funds form the foundation of retirement savings for most Indians. EPF alone can accumulate Rs 50 lakh to Rs 1 crore over a 25-30 year career, thanks to the combined employer-employee contribution and compounding at 8.25%. Never withdraw PF during job transitions — always transfer it.