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Balasandhya.sl
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dear senior
kindly give me some information on voluntary provident fund(vpf) as soon as possible...i need the info.My major doubt is ,is there any employer contribution in vpf,or the contribution is only from the employees side in the case of vpf.also tell me the minimum and maximum amount or % of vpf.....pls do reply
regards
bala sandhya.sl
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thanks a lot malik...for ur info..the max is 12 % means wat is the min amt,the employee should pay for voluntary pf or vpf..other seniors,pls do post your answers,only form the seniors,we the juniors can improve our knowledge...thank u once again for the forum cite hr
Dear Bala
12% is employee share towards EPF and 12% is employer share out of which 8.33% goes to pension and rest is provident fund.now u can pay max 12% as VPF max .and min is as per your choice ,employer will only pay 12%.so vpf and epf can be upto 24%.
tks
j s malik
Hi Bala,
Voluntary PF is over & above the statutory PF of 12%. There is no limit for VPF. An employee can contribute as much as he/she may wish, earlier there was a cap on this. Employee is not required to pay any contribution towards VPF.
Hope this helps.
Regards,
Atishai
Correction...
"Voluntary PF is over & above the statutory PF of 12%. There is no limit for VPF. An employee can contribute as much as he/she may wish, earlier there was a cap on this. Employer is not required to pay any contribution towards VPF"
Apologies’...
i would tel u in a ly mans terms.....the employers contri and the employee is of a max of 12%...but if u want to save more then u can increase the contribution from ur side to whtever extent but the employeers contribution will remain the same that is 12%(fluctuations can b there with regard to company policy)
wow...thats really an useful info...I got it clearly..I thought VPF is something an entirely different scheme from normal PF,but after ur reply,i understood,it s just an additional benefit,which is contributed from the employees side to get more benefits in the future...am i correct...thank u :icon1:
Dear Balaji,
Volu Contribution Depends On Employee He Can Contribute Upto 100% But U Need To Take Permision From E.p.f.o & As For As Employer Is Concern Max. Contribution Is 12%. But If Employer Is Willing To Pay More Towards E.p.f. He (employer) Can Pay.
Dear All,
In my views;
The Maximum contribution towards PF indluding VPF is 20%. Employer's contribution will restricted upto 12% only. The approval is needed from RPFC office.
Employee is entitled for interest on such accumulation.Employer's service charge will increase to some extent(.01%)
Hope this is the latest status.
Regards,
ACCHR
I am 100% agree with you guys, but basic condition is that total deduction including PF,ESI,Gratuity,VPF, etc. should not cross the 50% of the total amount which you have going to pay.
Hi, in VPF you can contibute more in PF to save your tax as on PF you will get the tax rebate but employer contribution will not change. It will be only 12%.
Hi friends;I have just a company as a HR executive. Dont have a format of payroll format. Please help me. I really need that format.
From our salary 12% is deducted as PF. I have some doubt n this:confused:. How do we employees will track, whether that deduction + Employer contribution is deposited in our PF account correctly:?:. And how to track the total available balance in our PF account:?:.
Regards,
Saranya
THERE IS NO CEILING ON CONTRIBUTION OF V P F. The V P F Contribution is only on the willingness of employee and it should be on the
specific percentage on PF WAGE and it is not a fixed amount like Rs.1000/-, Rs. 500/- etc. It should be always a some % on P F Wage. There is no need to pay EMPLOYER contribution on this. It is a voluntary Provident Fund Contribution by the employee. Employees generally opt for VPF for I T purpose and savings.
KALIDAS
I completely agree with Atishai. VPF is the cotribution made voulintarily by the employee towards his pf a/c. Regards, Sashmita
There is no limit that what employee should contribute in VPF it means he/she can contribute 100% of its basic+da salary.
Employer will not contribute at that rate what employee doing. Employer will just contribute the 10 or 12% whatever applies to establishment.
Best Regards
Its VPF means it depends upon u how much you money desire or how much % of your basic to deduct from your salary and deposited along withyour regular with PF deposit i.e.12% + 12% of employeer. On VPF employeer does not have any libality it your own and you will get same intrest as you are getting on regular P.F also you can not widraw
in between only on retirement or resignation. this as per my knowledge.
sunil prabhakar
Addl Manager H.R.

dear friends,
what is ESIC?????according to my knowledge it provide some benefit Sickness & other, suppose we are not taking any benefit then what happen according this Act..can any one explain this act....plzzzzzz
:confused:

Hi, For the deduction of Voluntary Provident Fund you have to apply for regularizing membership/Provident Fund Contributions deduction on salaries over and above Rs. 6500/- or at Higher Rate.

But employer should pay only 12% on basic rate. An employee can deduct the Provident Fund upto 32% of his basic. for thios he gets 8.5% intrest rate.

Pravin

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Voluntary contribution is that, which the individual wish he should deposit it in his/her provident fund. It can be any amount. The statutory deduction is minimum 12% from employee side and 12% from employer side. But Voluntary contribution is dependent on the individual, howsoever amount an individual is able to free to take off from his salary on monthly basis. The advantage is income tax saving, higher rate of interest etc.
hi all really cite hr is a very useful forum,helping the hr community a lot..feel happy to be a member of cite hr regards sl.bala sandhya
hi as per my knowledge the total pf contribution is 24% + 1.61% =25.61%
here 24% means 12% frm employee and 12% frm employer and remaining 1.61% is for pf admin charges and in this 12% employee contribution 8.33% is for eps and 3.67% is for epf.
Dear Bala,
The PF contribution is 12% both from employer & employee side. 12% is compulsory but in case employee wants he/she can increase the % of share of PF from the basic salary but employer contribution remains the same. There is no obligation on employer to increase their % of share on vpf.
In case of more clarification feel free to get in touch on .
Regards
Shikha Jain
Dear,
According to me, employee can invest maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF Contributions.
As most of the companies are bound to pay 12% PF, employees have a provision to contribute remaining 15% towards VPF.
However, Company contributes to the tune of 12% only.
Example:
Salary - Rs.10,000.00
Employee Cont - Rs. 1,200.00
Co.share to EPF - Rs. 659.00
Co.share to FPS - Rs. 541.00
Employee share towrads VPF (Max 15%) - Rs.1500.00
However, under the current interest rates and ivestment patterns and more options available (like PPF / MFs) the VPF has no major attraction in employee community. This was in practice in early years as many employees' savings are only through 'Forced' deductions.
Thanks & Best Regards,
Venkat
Dear all, i want help in forming the hr policy for a new organization as i am also new in this field pls help
Dear All,
Enclosed is the doc on salient features of PF.
Same can be downloaded from DKM Online - Download Section
Hope this is helpfull to all of us.
Regards,
Atishai

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File Type: doc Feature PF.doc (762.5 KB, 435 views)

hi 2 all,
Voluntary PF is the contribution of employee's own contribution and not from the employer side and has no limit. In our company it is restricted and compulsory to 12% from employer side but it can be more than 12% from employee side.
thx
Tajender K Bajaj
Hi, Can the employer restrict himself from paying PF contribution to employee earniong above Rs.6500. What is the legal procedure? Please update me
nothing there is a limit of Rs. 6500/- in EPF Act and according to that employers are required to contribute @ 6500/-. But if basic salary of a employee is more than 6500/- at time of joining and employee is not in favour of epf than employer has to taken form 11 from employee. But employers are not required to contribute on full basic i.e, above 6500/-. One more thing if a employee is covered under the epf act and after increment his basic salary increses and moves more then 6500/- then in this case he is also required to contribute till his service @6500/-.
Dear All,
VPF is over and above the statutory rate of 12% which only the employee contributes. Employer will not contribute anything against employee's VPF contribution. In fact there is no ceiling on VPF. The whole amount of VPF earns tax benefit to an employee.
If employee is not member of PF, he/she can deposit vpf only ? is yes what is the procedure of VPF
My basic is Rs.7500 but my PF is not deducted due to croos limit of Rs.6500 as per PF rules. Can i apply for Voluntory PF deduction? Regards, Robins Christian
Their is CAP of 40 % on VPF ........................................................................................................
dear bala,

Actually the contribution is 12% from Employee side & 12% from Employer side + some other admin charges.

So the government has fixed 12% minimum from Employee contribution and if the employee wants to contribute more then 12% he can. If the employee is contributing more then 12% what ever the extra contribution is done that is called voluntary.
Mahesh
My employer is not providing felicity of VPF. How can I contribute in VPF? Is their any way ?
I wonder most of the guys on this cite they are just to misguide. For VPF employee can contribute for 100% on BASIC & DA (if given) Beware of incomplete information.
Provident Fund (PF) & Voluntary Provident Fund (VPF):
PF is automatically deducted from your salary.
Both you and your employer contribute to it.
While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments.
You also have the option to contribute additional amounts through voluntary contributions (VPF).
Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
Try speaking to your HR Head, give them a written application if necessary; for the amount of VPF you want to deduct from your Salary. Or you will have to separately visit the PF office, I suppose.
Voluntary PF is deducted on request of Employee by employer from his/her salary a fixed amount, VPF are not limit. It is like a Recurring Deposit like opened in bank. It is extra saving amount which you put with PF department Interest will be calculated.
Thanks
SANJIV GUPTA
Hi, In my view the cap is 20% for the contribution. If one wants to exceed this, permission from the RPFC is required. However, I am open to correction. Cyril
There is no limit for VPF, employee can contribute 100% from BASIC and DA. Checked with respective local regional EPFO.
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