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