Explore Personal Banking
Accounts
Deposits
Loans
Wealth & Insure
Payments
Cards
What's special about us
Customer Support
Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore Gift City
About Us
Investors
Careers
IDFC FIRST Academy
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account
Open an Account

EPFO Benefits – Tax Advantages, Employer Contributions & Key Perks

Key Takeaways

  • EPFO offers matched employer contributions—a 100% return on your own savings.
  • Tax benefits include deductions under Section 80C and tax-free interest under Section 10(11).
  • Built-in pension and life insurance coverage make EPFO more than just a savings tool.
  • Ideal for long-term, low-risk retirement planning.
  • Use digital tools to monitor and manage your EPF with ease.
10 Jun 2025 by Team FinFIRST
EPFO Benefits – Tax Advantages, Employer Contributions & Key Perks
Open an Account

When it comes to planning your financial future, EPFO (Employees' Provident Fund Organisation) stands out as one of the most tax-efficient, risk-free investment options for salaried employees in India. If you're looking to build wealth, save on taxes, and secure your future, EPFO is a smart move.

Here’s why EPFO is more than just a salary deduction:

READ MORE

Four differences between a Demat and Trading account
Four differences between a Demat and Trading account
Four things you should know about a Trading Account
Four things you should know about a Trading Account

Employer Contributions
 

Every month, 12% of your basic salary goes into your EPF account and your employer matches that 12%. That’s a 100% return on your contribution right from the start. Over time, this match significantly boosts your savings, helping you build a solid retirement fund.

Tax-Free Returns – Keep More of What You Earn
 

The interest earned on your EPF corpus (currently around 8.25% p.a.) is completely tax-exempt under Section 10(11) of the Income Tax Act. That means more money in your hands when you retire, without the tax burden.

🔹 Section 80C Deduction – Cut Your Tax Bill
 

Your personal contribution towards EPF is eligible for a deduction under Section 80C, up to ₹1.5 lakh per year. This directly reduces your taxable income—helping you save more while you invest for the future.

🔹 Life & Pension Benefits – Safety Beyond Savings
 

Your EPFO membership includes two hidden gems at zero extra cost:

  • Employees’ Pension Scheme (EPS): Get a monthly pension after 10 years of service.
  • Employees' Deposit Linked Insurance (EDLI): Enjoy life cover up to ₹7 lakh, automatically covered as long as you're contributing to EPF.

✅ Benefit Snapshot
 

  • Interest Rate: ~8.25% per annum (compounded)
  • Tax Deduction: Up to ₹1.5 lakh under Section 80C
  • Tax-Free Returns: Under Section 10(11)
  • Pension: Eligible after 10 years of service
  • Life Insurance: Up to ₹7 lakh via EDLI

💡Track & Grow Your EPF Wealth
 

Want to keep an eye on your growing EPF corpus? Just visit the EPFO section in your Net Worth dashboard to view your contributions, check interest earned, and download your passbook in a single tap.

Final Thought:

Whether you're just starting your career or well on your way, EPFO offers a safe, rewarding, and tax-friendly way to build wealth for the future. With employer support, government backing, and long-term perks, it’s a retirement plan that works while you work.

Start early, stay invested, and let your EPF work for your tomorrow.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.

Prev

How to Calculate Personal Loan EMI Using Excel?
Next

Discover how a home loan prepayment calculator can save you big

Related Products

Related Articles

Download IDFC FIRST Bank App

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan