Difference Between EPF and CPF

EPF vs CPF

EPF and CPF are the two types of provident funds issued to the salaried employees. They are implemented in different countries and have different clauses.

EPF
“EPF” stands for “Employees’ Provident Fund.” It is a Social Security tool for salaried employees in India and Malaysia. Expenses of an employee towards his housing and medical bills are covered under this fund, but a certain part of this fund, say 40 per cent, cannot be touched at all until termination or retirement of the employee. Under this program, a certain percentage, currently 12 per cent, is deducted from the employee’s salary and credited to his EPF fund. This percentage is decided by the government. An equal amount is contributed to the employee’s fund by the employer. An employee can contribute a greater amount, if he desires, but the employer’s share is restricted to a fixed percentage (currently 12%).

CPF
“CPF” stands for “Central Provident Fund.” To provide Singaporeans with a healthy retirement plan, a mandatory benefit account, called the Central Provident Fund was set up on July 1, 1955 ensuring every Singaporean to be provided for their retirement, health, and housing needs. Since September, 2010, the employer’s share has been revised and increased from time to time, making an increase of 16 per cent and bringing the total fund to 36 per cent. Depending upon the employee’s age, the rates of contribution may vary. Employees who are 35 years of age or younger should contribute 33 per cent of their wages, breaking down to the employee’s share as 20 per cent of his wage and the remaining 13 per cent share by the employer.

Summary:

1.The EPF program is a Social Security tool for salaried people of India and Malaysia while the CPF program is for salaried people of Singapore.
2.In the EPF program, an employee can contribute 12 per cent or more of his salary while in the CPF program an employee can contribute a fixed 20 per cent of his salary.
3.In the EPF, the employer’s share of the contribution is fixed at 12 per cent while in the CPF the employer’s share of the contribution varies and starts from a 13 per cent minimum.
4.In the EPF, 40 per cent of the total funds cannot be touched until the date of his or her retirement while in the CPF the funds cannot be touched at all until the employee retires.

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