Contributions
Voluntary Provident Fund (VPF)
VPF is applicable for employees who are covered under the Employee’s Provident Fund.
How can employee opt for VPF?
Any employee can opt for VPF by mentioning the details like what is the percentage he/she wants to opt on his/her Basic+DA+Food Allowance and give the same in writing to the employer.
After that the mentioned percentage of amount on Basic+DA+Food Allowance will be contributed towards VPF.
His/Her contribution will continue till he/she will be in service.
From the Employer Side:
Employer can add this VPF amount also along with EPF amount under contribution recovered from Employee while mentioning Form – 12A or can have two separate columns one for EPF and other for VPF. The same thing in PF Challan can be mentioned separate box given under Employee’s Provident Fund which says VPF.
In yearly returns we can mention under a column called “RATE OF HIGHER VOLUNTARY CONTIRBUTION (If Any)” in Form 6A and same kind of column can be added in Form 3A also this will help to have more clarity.
When it comes to mentioning in the Withdrawal form i.e particularly in Form-19 we need to mention the total amount of employee contribution which would include both EPF and VPF.
Note: There is no limit on the percentage that one can choose to opt. And Admin/EDLI Charges are applicable only on the total wages and thus it will not make employer to pay extra charges.
- Babu
Appreciate And Validate
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