What is VPF?
Voluntary Provident Fund or VPF is defined as a voluntary scheme for investment made by salaried employees over and above the Employee Provident Fund (EPF) governed and supported by the Government of India. Under VPF, employees contribute a certain percentage of their share of salary to the PF account. Employee may direct their employer to deduct an extra amount of PF over and above EPF, VPF contribution is beyond the set standard contribution of 12% of EPF which is compulsory in nature to contribute for both employee and employer, whereas under VPF neither employee nor employer is under a statutory obligation to contribute.
Key takeaways from Voluntary Provident Fund (VPF):
- VPF is a voluntary long-term investment scheme supported by the Government of India
- Under VPF there is no statutory obligation to contribute either to employee or employer.
- The interest rate applicable to VPF is the same as what is applicable to EPF.
Table of Content
- Interest Rate on VPF
- Benefits of Voluntary Provident Fund
- Limit of VPF Investment
- Documents Required For VPF Registration
- How to Open a VPF account?
- How to Check VPF Balance Online?
- EPF vs VPF vs NPS
- Frequently Asked Questions (FAQs)