Glossary term

EPF

Salaried-employee retirement scheme — 12% of basic deducted, matched by employer; ~8% tax-free return.

Employees' Provident Fund (EPF) is the mandatory retirement scheme for salaried employees of registered Indian organisations. 12% of basic salary is deducted; the employer contributes an equal 12% (8.33% to EPS pension, 3.67% to EPF).

EPF currently pays around 8% per annum, tax-free if the account is held for 5+ years. Your contribution counts toward Section 80C automatically. Don't withdraw EPF between jobs — it resets the compounding clock and forfeits future tax benefits.