Hope i made some attempt to clarify you.
Where is the clause or restriction ?
An employee can contribute an additional 8% towards PF(Total Max 20%). This additional 8% will be credited to PF account .There is no need to fill any specific form regarding this.
Thanks and Regards,
Posted 4th February 2016
Presently I m deducting 36% (12%+24%) of my basic. My HR told me there is a limitation of Interest over VPF (interest will be allowed only upto 20% VPF). But i Have checked and found the EPFO is giving same interest on EPF & VPF.
No doubt presently VPF is a big saving tool than any other. EPF attracts good interest. The major point is that in other investment, if you break the premium/payment the plan will reduce your "Return". In private sector jobs are uncertain,. If you take any big policy/investment plant and some adverse happened, and you find/feel you cant continue it in your bad times. The policymaker make use of your situation.
But in EPF you have to contribute only till you are in job, but this will help you in your bad time (if you are jobless and much need money, you can withdraw the EPF). Though EPF is a retirement plan, we shud not withdraw, till it is must.
There is one restriction, though.
Payment of wages act does not allow total deductions to exceed 50% of gross wages.
So your contribution can't exceed that (including deductions of epis, etc).
I would then suggest using PPF which is similar, but allowing you up to ₹150,000 per year