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Provident Fund (EPF)
The Employees’ Provident Fund requires salaried employees and their employers to each contribute 12% of basic pay to a retirement account managed by the EPFO. It pays a declared interest rate each year and can be withdrawn at retirement or in specific situations.
Why It Matters
EPF is forced saving, and for many Indians it becomes their largest retirement asset.
In India
An employee with basic pay of ₹25,000 contributes ₹3,000 a month to EPF, matched by the employer.
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