Exploring EPF and EPS: Essential Components of Employee Benefits

TrackMyPF by Finnable, Download for Smarter PF Management


Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are integral components of employee benefits in many organizations worldwide. These schemes are designed to provide financial security and retirement benefits to employees. In this blog, we will delve into the key aspects of EPF and EPS, compare their features, and explore their significance in the realm of employee benefits.

Understanding EPF:

The Employee Provident Fund (EPF) is a retirement savings scheme mandated by the government, aimed at providing financial security to employees after retirement. Both employees and employers contribute a certain percentage of the employee’s salary towards the EPF account. The contributions accumulate over the years, earning interest, and serve as a retirement corpus for employees.

Key Features of EPF:

  1. Mandatory Contributions: Both employers and employees are required to contribute a certain percentage of the employee’s salary towards the EPF account.
  2. Tax Benefits: Contributions made towards EPF are eligible for tax deductions under Section 80C of the Income Tax Act.
  3. Retirement Corpus: The accumulated EPF amount serves as a retirement corpus for employees, providing financial security post-retirement.
  4. Withdrawal Options: EPF allows partial withdrawals for specific purposes such as purchasing a house, medical emergencies, or education expenses.
  5. Interest Accrual: EPF contributions earn interest, which is compounded annually, ensuring the growth of the retirement corpus over time.

Understanding EPS:

The Employee Pension Scheme (EPS) is a pension scheme that operates alongside the EPF, providing pension benefits to employees after retirement. EPS is managed by the Employees’ Provident Fund Organization (EPFO) and offers financial assistance to retired employees and their dependents.

Key Features of EPS:

  1. Pension Benefits: EPS provides a monthly pension to employees after retirement, ensuring financial stability during their post-retirement years.
  2. Eligibility Criteria: Employees who are members of the EPF scheme and have completed a minimum service period are eligible for EPS benefits.
  3. Pension Calculation: The pension amount under EPS is calculated based on factors such as the employee’s pensionable service, average monthly salary, and pensionable salary.
  4. Nomination Facility: Employees have the option to nominate their family members or dependents to receive pension benefits in case of their demise.
  5. Commutation Option: EPS also offers the option of commutation, wherein a portion of the pension amount can be converted into a lump sum payment.
PurposeBuilding retirement corpusProviding pension benefits to retired employees
Contribution StructureContributions from both employer and employeeContributions solely from the employer
Withdrawal OptionsPartial withdrawals for specific purposesMonthly pension with limited commutation options
Tax TreatmentContributions qualify for tax deductions (Section 80C)Pension income is taxable
DependencyFunds can be withdrawn for various purposesIntended to provide financial support to retired employees and their dependents

TrackMyPF by Finnable:

Tap your PF’s potential with TrackMyPF by Finnable! With this app, you can:

  1. Plan Your PF Growth and gain informed retirement savings insights.
  2. Easily understand eligibility and streamline the withdrawal process.
  3. Access your entire PF history securely in one place, paper-free.
  4. Effortlessly track your PF balance and retirement progress.
  5. Gain financial insights by reviewing past PF transactions.

Download TrackMyPF on iOS & Android to take control of your PF! Available on the App Store and Google Play Store:  Click to download: https://www.finnable.com/products/trackmypf


Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are essential components of employee benefits, offering financial security and retirement benefits to employees. While EPF focuses on building a retirement corpus through regular contributions and interest accrual, EPS provides pension benefits to retired employees. Both schemes play a crucial role in ensuring the financial well-being of employees during their post-retirement years. Understanding the features and benefits of EPF and EPS is vital for employees to make informed decisions regarding their retirement planning and financial security.


Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 


Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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