Dear all, Please can anyone tell me that what is VPF? I know about EPS, EPF but here the first time I have seen VPF. And is there any ceiling limit of VPF?
What is the procedure of VPF? Please guide me in this direction.
From India, Rajkot
15What is the procedure of VPF? Please guide me in this direction.
From India, Rajkot
Hello Vipul...
EPF is usually VPF is usually an extension of EPF...
In simpler words, in EPF, employer and employee both contribute 12% each... In addition to this 12%, employer is expected to bear the account handling charges as well as insurance charges (Which are minimal)
However, under EPF scheme an employee is allowed to voluntarily increase his/her own share from 12% to a max of 20% so that he can plan and invest more in his retirement benefit. However, the employer is under no obligation to increase his share more than 12% plus the account handling charges.
Since the changes are voluntarily made by employee, we call it VPF or Voluntary Provident Fund.
Hope this clears your doubt.
From India, Mumbai
EPF is usually VPF is usually an extension of EPF...
In simpler words, in EPF, employer and employee both contribute 12% each... In addition to this 12%, employer is expected to bear the account handling charges as well as insurance charges (Which are minimal)
However, under EPF scheme an employee is allowed to voluntarily increase his/her own share from 12% to a max of 20% so that he can plan and invest more in his retirement benefit. However, the employer is under no obligation to increase his share more than 12% plus the account handling charges.
Since the changes are voluntarily made by employee, we call it VPF or Voluntary Provident Fund.
Hope this clears your doubt.
From India, Mumbai
Dear Shah
There is no limit to EPF as 20% said by you.
Act does not say so.
EPF can be any amount upto your qualifying salary within it's 100%. Employer will contribute only 12% + Admin. charges.
Regards
Suresh
From India, Nagpur
There is no limit to EPF as 20% said by you.
Act does not say so.
EPF can be any amount upto your qualifying salary within it's 100%. Employer will contribute only 12% + Admin. charges.
Regards
Suresh
From India, Nagpur
Contributions
Voluntary Provident Fund (VPF)
VPF is applicable for employees who are covered under the Employee’s Provident Fund.
How can employee opt for VPF?
Any employee can opt for VPF by mentioning the details like what is the percentage he/she wants to opt on his/her Basic+DA+Food Allowance and give the same in writing to the employer.
After that the mentioned percentage of amount on Basic+DA+Food Allowance will be contributed towards VPF.
His/Her contribution will continue till he/she will be in service.
From the Employer Side:
Employer can add this VPF amount also along with EPF amount under contribution recovered from Employee while mentioning Form – 12A or can have two separate columns one for EPF and other for VPF. The same thing in PF Challan can be mentioned separate box given under Employee’s Provident Fund which says VPF.
In yearly returns we can mention under a column called “RATE OF HIGHER VOLUNTARY CONTIRBUTION (If Any)” in Form 6A and same kind of column can be added in Form 3A also this will help to have more clarity.
When it comes to mentioning in the Withdrawal form i.e particularly in Form-19 we need to mention the total amount of employee contribution which would include both EPF and VPF.
Note: There is no limit on the percentage that one can choose to opt. And Admin/EDLI Charges are applicable only on the total wages and thus it will not make employer to pay extra charges.
- Babu
Appreciate And Validate
attribution <link outdated-removed> #ixzz2aQFpjuRg
From India, Nagpur
Voluntary Provident Fund (VPF)
VPF is applicable for employees who are covered under the Employee’s Provident Fund.
How can employee opt for VPF?
Any employee can opt for VPF by mentioning the details like what is the percentage he/she wants to opt on his/her Basic+DA+Food Allowance and give the same in writing to the employer.
After that the mentioned percentage of amount on Basic+DA+Food Allowance will be contributed towards VPF.
His/Her contribution will continue till he/she will be in service.
From the Employer Side:
Employer can add this VPF amount also along with EPF amount under contribution recovered from Employee while mentioning Form – 12A or can have two separate columns one for EPF and other for VPF. The same thing in PF Challan can be mentioned separate box given under Employee’s Provident Fund which says VPF.
In yearly returns we can mention under a column called “RATE OF HIGHER VOLUNTARY CONTIRBUTION (If Any)” in Form 6A and same kind of column can be added in Form 3A also this will help to have more clarity.
When it comes to mentioning in the Withdrawal form i.e particularly in Form-19 we need to mention the total amount of employee contribution which would include both EPF and VPF.
Note: There is no limit on the percentage that one can choose to opt. And Admin/EDLI Charges are applicable only on the total wages and thus it will not make employer to pay extra charges.
- Babu
Appreciate And Validate
attribution <link outdated-removed> #ixzz2aQFpjuRg
From India, Nagpur
Thank Suresh, If we are cutting VPF from Salary, shall we get the govt. interest ? shall we have to take any permission from employer to deduct the VPF ?
From India, Rajkot
From India, Rajkot
Dear Vipul
Not only that you will get interest on your VPF +employers contribution to 12 %,It will be free from attachment of any Decree by court .
You have to only write to your employer to deduct the proposed VPF from your salary.
I advise to maintain your VPF as a multiple of 12% e.g. 12/24/36 -----onwards.
Regards
Suresh
From India, Nagpur
Not only that you will get interest on your VPF +employers contribution to 12 %,It will be free from attachment of any Decree by court .
You have to only write to your employer to deduct the proposed VPF from your salary.
I advise to maintain your VPF as a multiple of 12% e.g. 12/24/36 -----onwards.
Regards
Suresh
From India, Nagpur
Employee's PF is 12% of the the Basic + DA + Other pay (as described by the organisation).
The remaining 88% can be VPF - that means, 100% of your Basic Pay+DA+ Other Pay can be contributed towards the EPF.
However, the organisation's contribution will be 12% towards the EPF.
There are many who live with the other allowances after contributing 100% (12% + 88%) towards the EPF!
Rajusiachen
From India, Coimbatore
The remaining 88% can be VPF - that means, 100% of your Basic Pay+DA+ Other Pay can be contributed towards the EPF.
However, the organisation's contribution will be 12% towards the EPF.
There are many who live with the other allowances after contributing 100% (12% + 88%) towards the EPF!
Rajusiachen
From India, Coimbatore
Dear All,
To know upper limit of VPF, please review below given link, especially posting by me.
https://www.citehr.com/456450-volunt...utive-pg2.html
From India, Mumbai
To know upper limit of VPF, please review below given link, especially posting by me.
https://www.citehr.com/456450-volunt...utive-pg2.html
From India, Mumbai
Dear Sir, For Voluntary higher rate of PF Contribution (Beyond 12%) there is no lower limit or upper limit prescribed in the Act. D.Gurumurthy HR & IR Consultant, Hyd.
From India, Hyderabad
From India, Hyderabad
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