The Ultimate Guide to EPF & Retirement in India
Government-backed security! A deep dive into EPF, VPF, and NPS to help Indian employees maximize their retirement benefits.
For salaried professionals in India, the Employee Provident Fund (EPF) is the bedrock of retirement security. In 2026, understanding how to leverage EPF and voluntary contributions can make or break your retirement goals.
EPF vs VPF
While EPF is mandatory (12% of basic pay), you can voluntarily contribute up to 100% of your basic pay into the Voluntary Provident Fund (VPF). VPF offers the same high interest rate as EPF and is one of the safest tax-free (up to ₹2.5 Lakh/year) debt instruments in India.
The NPS Advantage
In addition to EPF, the National Pension System (NPS) offers a market-linked component and additional tax benefits. A healthy mix of EPF and NPS is the recommended retirement strategy for 2026.