VPF is a lucrative saving option for the current EPF contributors who want to save some more money with steady returns backed by Government. EPF is not so much difference with VPF. In VPF an employee can knowingly increase their monthly contribution to their provident fund. Interest which is paid to EPF amount will be levied to VPF also. Right now due to volatile situations in market, best interest earning scheme is to invest in EPF or VPF as much as possible. Savings accounts or fixed deposit bonds are not steady gainers because of base rate cut by RBI on all schemes.
VPF Voluntary Provident Fund Scheme:
As name indicates it is given to persons who voluntary retire from their services and it is similar to EPFO but it does not have any upper ceiling that means it will have 100% of employee basic wage and there will be no legal obligation. After starting this VPF there is no disclosure in middle and they have to pay up to five years and it was decided by government at time of joining
Eligibility to VPF:
Those who had any employment can donate their money to VPF and it will pay by their respective company
There should be tax assumption for this which will give 9.5% up to Interest will get tax exempted and amount of maturity will be tax free
It is easy to open and EPF account can also serve as VPF account
It is risk free as it get fixed rate of interest
One can get loan i=by using VPF account and it will get high returns up to 8.5% as P.A
Anyone can get easy transfer and UAN is linked with EPF account
At time of emergency one can withdrawal their amount and in case of death of employee his nominee will get all amount as gift and its tenure is 5 years
In case of emergency medical bills, Childs marriage, purchase of new land or construction of new house and education for their children. Process is same as EPF withdrawal. There is no special application form designated for VPF withdrawal. Lock in period is also applicable as EPF to VPF and if an employee was unemployed for 2 consecutive months, he or she is allowed to withdraw their provident fund amount as per allowed rules and measures.