New Delhi, April 27 -- Employees' Provident Fund (EPF) contributions form a key part of retirement savings for salaried individuals, combining employee and employer contributions each month along with annual interest. Alongside the EPF account, a portion of the employer's contribution is also directed towards the Employees' Pension Scheme (EPS), which is meant to provide monthly pension benefits after retirement.

Most employees contribute 12% of their basic salary plus dearness allowance (subject to a maximum of Rs.15,000) every month towards EPF. The employer also contributes an equivalent 12%, of which 3.67% is deposited into the EPF account, while the remaining 8.33% is invested into the employee's EPS account.

While EPF balances are...