What is the difference between EPF and EPS

Question

Accepted Answer

EPF and EPS are two different components of the employee provident fund scheme in India.

EPF stands for Employee Provident Fund, which is a retirement savings scheme for employees in India.
EPS stands for Employee Pension Scheme, which provides a pension to employees who have completed a certain number of years of service.
EPF is mandatory for all employees earning a basic salary of up to Rs. 15,000 per month, while EPS is optional.
EPF contributions are made by both the employee and the employer, while EPS contributions are made only by the employer.
EPF contributions are divided into two parts - 12% of the employee's basic salary goes into the EPF account, and 3.67% goes into the Employee Pension Scheme.
EPS contributions are calculated based on the employee's pensionable salary and the number of years of service.
EPF provides a lump sum amount to the employee at the time of retirement, while EPS provides a monthly pension.
EPF withdrawals are allowed for specific purposes like buying a house, education, medical emergencies, etc., while EPS withdrawals are not allowed before the employee reaches the retirement age.

Accepted Answer

The fullform of both word is different like the EPF Is EMPLOYEE PROVIDENT FUND and the EPS is EMPLOYEE PENSION SCHEME.

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