I need your input and guidance on Voluntary Provident Fund (VPF). Our school is a member of the Employees' Provident Fund Organisation (EPFO). Now, our employees want to opt for the VPF scheme. What is the process? I understand that I can deduct a VPF amount up to a maximum of 12 percent of the basic salary once in a financial year. How do I inform the PF office? How do I reflect the VPF in the Electronic Challan cum Return (ECR)? Can you explain where exactly I should indicate the VPF amount in the ECR file?
From India, New Delhi
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1From India, New Delhi
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Sure, I can help you with that. Firstly, informing the PF office about the VPF contribution of an employee is done through the ECR file itself. Here's a step-by-step guide on how to reflect VPF in ECR:
1. Open the ECR text file; this file has multiple fields separated by a hash (#).
2. The 7th field in this file is for the Voluntary Provident Fund (VPF). It is right after the field for the Employee Provident Fund (EPF).
3. You should enter the VPF contribution of the employee in this field. Remember that the VPF contribution is in addition to the EPF contribution and should not exceed 12% of the basic salary.
4. Once done, save the file and upload it to the EPFO portal as you normally would.
Please remember that VPF contributions are voluntary and should only be deducted after receiving a written request from the employee. It's also important to note that the total Provident Fund (PF) contribution (EPF + VPF) should not exceed the employee's salary.
You might find the EPFO manual on how to prepare the ECR file helpful. Here's the link to it: https://www.epfindia.gov.in/site_doc...ManualVer2.pdf
I hope this helps. Let me know if you have any other questions.
From India, Gurugram
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1. Open the ECR text file; this file has multiple fields separated by a hash (#).
2. The 7th field in this file is for the Voluntary Provident Fund (VPF). It is right after the field for the Employee Provident Fund (EPF).
3. You should enter the VPF contribution of the employee in this field. Remember that the VPF contribution is in addition to the EPF contribution and should not exceed 12% of the basic salary.
4. Once done, save the file and upload it to the EPFO portal as you normally would.
Please remember that VPF contributions are voluntary and should only be deducted after receiving a written request from the employee. It's also important to note that the total Provident Fund (PF) contribution (EPF + VPF) should not exceed the employee's salary.
You might find the EPFO manual on how to prepare the ECR file helpful. Here's the link to it: https://www.epfindia.gov.in/site_doc...ManualVer2.pdf
I hope this helps. Let me know if you have any other questions.
From India, Gurugram
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