Central Government is running one scheme after another for the benefit of the employees. The mandatory investment for employed people is the Provident Fund, or PF. But there is also an investment that is optional, which is called a voluntary provident fund (VPF). Yes, you’ve heard it right.
The advantage of VPF is that it is a government-backed savings scheme with low risk and high returns. Let us now know in a little detail what this VPF is, how much interest is received in it, and what is its eligibility.
What is VPF?
When you are doing a job, you have to plan your future along with the present, that is, your retirement. You have a regular income during the job, so it is very important that you invest some money from it so that.
Employees’ Provident Fund is a mandatory category of PF investment, while Voluntary Provident Fund is an alternative PF. VPF is a voluntary fund contribution by an employee to his Provident Fund (PF) account. This contribution is in addition to 12 percent of the contribution made by an employee towards his EPF. The maximum contribution can be up to 100 percent of the basic salary and dearness allowance.
Who is eligible for VPF?
Those individuals who work in the organized sector are eligible for VPF. For VPF, a person must work in an EPF-recognized organization.
How do I apply for VPF?
If you also want to apply for VPF, then you have to tell your company’s HR department in writing or by mail. Apart from this, you have to fill out a VPF application form. You will also need to specify the amount that will be deducted from their monthly salary as a VPF contribution.
What is the interest rate in VPF?
VPF is a subset of EPF, so it earns interest at the same rate as EPF. The EPF interest rate for the financial year 2023-24 was set at 8.1 percent. Therefore, the same percentage is available only on VPF.
What is the maturity time?
The minimum lock-in period for VPF is 5 years. The amount you will get at the time of maturity depends on the amount you invest.
Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
