Understanding EPF, GPF, NPS, Pension and Gratuity: A Comprehensive Guide for Indian Employees


As an employee in India, it is essential to have a clear understanding of various funds and schemes that affect your financial future. In this blog post, we will explore the important aspects of EPF, GPF, NPS, Pension, and Gratuity, and provide you with valuable information to make informed decisions.

EPF (Employees Provident Fund)

The Employees Provident Fund (EPF) is a government-managed savings scheme that helps employees save for their retirement. It is a mandatory contribution wherein both the employer and the employee make monthly contributions.

EPF is a long-term investment that offers attractive interest rates. The amount accumulated in your EPF account can be withdrawn upon retirement, or in some cases, for specific financial emergencies.

GPF (General Provident Fund)

The General Provident Fund (GPF) is a similar fund to EPF but is applicable only to government employees. It allows government employees to save a portion of their salary for retirement. The contributions made to GPF are eligible for tax benefits, and the interest rates are determined by the government.

Advance Payments from EPF and GPF

Both EPF and GPF allow employees to make advance withdrawals under certain circumstances. In case of medical emergencies, education expenses, or house construction, employees can avail partial withdrawals or loans from their EPF or GPF accounts.

However, it is important to note that these withdrawals come with specific eligibility criteria and may have implications on the final retirement corpus. It is always advisable to consult with a financial advisor before making such withdrawals.

Pension and Gratuity

After retirement, employees are eligible for a monthly pension, which provides a regular income to sustain their livelihood. The pension amount is calculated based on factors such as length of service, average salary, and contribution made to the pension scheme.

Gratuity, on the other hand, is a lump sum amount that is paid to the employee as a token of appreciation for their service. It is calculated based on the number of years of service and the last drawn salary.


Understanding EPF, GPF, NPS, Pension, and Gratuity is crucial for every Indian employee. These funds and schemes play a significant role in securing your financial future. By taking advantage of the available calculators and understanding the calculation formulas, you can plan your investments wisely and maximize your retirement benefits.

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