VPF (Voluntary Provident Fund)
One can invest more than 12% of his/ her salary to PF account. This excess contribution to PF is called VPF. You can contribute to PF in percentage (%) terms only. It means you can ask your employer to deduct excess 3% of your salary but you cannot say deduct INR 2,000 more. You will get the interest on VPF. But Employer will not contribute matching % for VPF . Employer will only 12% of your basic salary, not beyond that.
Rules applicable to VPF is same as applicable to employee’s contribution. There is no change. Only difference is that instead of you contributing 12% of your salary, now you are contributing more to PF.
Tax benefit is available u/s 80C on VPF contribution subject to the maximum limit available for this section.
Must Read : Some facts about EPF
: EPF Facts 1 – Nomination and Insurance Facility
: EPF Facts 2 – Pension by EPFO
: EPF Facts 3 – No interest on EPS (Employee Pension Scheme)
