In recent times, what is vpf in salary slip has become increasingly relevant in various contexts. Voluntary Provident Fund (VPF): Interest Rate, Benefits, Tax ... The VPF or Voluntary Provident Fund is a non-compulsory investment made by salaried employees over and above the EPF i.e. Employees Provident Fund. It's important to note that, the major advantage is that it is a government-backed savings scheme with low risks and high returns. Voluntary Provident Fund (VPF): Eligibility, Interest Rates & Key ....
Voluntary provident fund or VPF is an extension of retirement savings plans offered to salaried people in India. Unlike the EPF, this is an optional scheme and not an obligatory one; here employers and employees make a prescribed percentage contribution out of an employee's salary, 12% for EPF. VPF or Voluntary Provident Fund is a provident fund scheme under which an employee voluntarily deposits a sum in excess of the maximum permissible employee’s contribution towards EPF. From another angle, the interest earned on this additional amount is the same as that earned on the EPF contribution.
Maximum contribution under VPF scheme is 100% of basic salary + dearness allowance, and if applicant makes a withdrawal before 5 years, proceeds received from VPF account will be taxable. What is Voluntary Provident Fund? Explanation | EasyHR. Furthermore, it allows salaried employees to voluntarily contribute a portion of their salary (over and above the mandatory 12% contribution under the Employee Provident Fund or EPF) into a provident fund account. VPF - Voluntary Provident Fund Benefits & Interest Rate 2025.
Employees can contribute up to 100% of their basic salary and dearness allowance, boosting their retirement savings. In this context, under the VPF scheme, employees can voluntarily contribute to their provident fund account. The scheme is also called the Voluntary Retirement Fund scheme. Understanding Voluntary Provident Fund: A Wise Retirement ...
Building on this, under this scheme, employees can choose to contribute a portion of their salary towards a provident fund account. It is a non-mandatory contribution. Voluntary Provident Fund (VPF) Scheme | A Complete Guide For Employees. Unlike the EPF, which mandates a 12% contribution of basic salary, VPF allows contributions up to 100% of the basic salary and dearness allowance (DA). The interest earned on these contributions is the same as EPF, making it an attractive option for risk-averse investors looking for assured returns. VPF - Voluntary Provident Fund | Overview, Features & Benefits.
It allows you to contribute more than the mandatory 12% of your basic salary and dearness allowance (DA) that goes into the Employees’ Provident Fund (EPF). Additionally, these additional contributions earn the same interest rate as EPF and are managed by the Employees’ Provident Fund Organisation (EPFO).
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