The Nest Building Tools: EPF, VPF, PPF, SCSS & Gratuity
EPF, VPF, PPF, SCSS, and Gratuity form the guaranteed, government-backed foundation of an Indian retirement plan — the “nest.” This guide explains what each instrument does, current rates (EPF & VPF at 8.25%, PPF at 7.1%, SCSS at 8.2% for FY 2025-26/Q1 FY 2026-27), contribution limits, and tax treatment (most are EEE — exempt-exempt-exempt). VPF, often overlooked, lets high-earners voluntarily top up their EPF at the same guaranteed rate. SCSS and Gratuity are end-of-career payout tools rather than accumulation tools. Together these five instruments form a low-risk floor — but they don’t offer the equity growth needed to truly outpace inflation, which is where mutual funds and NPS come in.