Dear Senior,
Kindly provide me with some information on the Voluntary Provident Fund (VPF) as soon as possible. I need the info. My major doubt is: is there any employer contribution in VPF, or is the contribution only from the employee's side in the case of VPF? Also, please tell me the minimum and maximum amount or percentage of VPF. Please do reply.
Regards,
Bala Sandhya SL
From India, Madras
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2Kindly provide me with some information on the Voluntary Provident Fund (VPF) as soon as possible. I need the info. My major doubt is: is there any employer contribution in VPF, or is the contribution only from the employee's side in the case of VPF? Also, please tell me the minimum and maximum amount or percentage of VPF. Please do reply.
Regards,
Bala Sandhya SL
From India, Madras
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Thank you very much, Malik, for your information. The maximum is 12%, which means what is the minimum amount the employee should pay for voluntary PF or VPF. Other seniors, please post your answers. Only from the seniors, we juniors can improve our knowledge. Thank you once again for the forum. Cite HR.
From India, Madras
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From India, Madras
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Dear Bala,
12% is the employee's share towards EPF, and 12% is the employer's share, out of which 8.33% goes to the pension, and the rest is the provident fund. Now, you can pay a maximum of 12% as VPF. The maximum, and the minimum is as per your choice. The employer will only pay 12%, so VPF and EPF can be up to 24%.
Thank you,
J. S. Malik
From India, Delhi
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12% is the employee's share towards EPF, and 12% is the employer's share, out of which 8.33% goes to the pension, and the rest is the provident fund. Now, you can pay a maximum of 12% as VPF. The maximum, and the minimum is as per your choice. The employer will only pay 12%, so VPF and EPF can be up to 24%.
Thank you,
J. S. Malik
From India, Delhi
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Hi Bala,
Voluntary PF is over and above the statutory PF of 12%. There is no limit for VPF. An employee can contribute as much as he or she may wish; earlier, there was a cap on this. The employee is not required to pay any contribution towards VPF.
Hope this helps.
Regards,
Atishai
From India, Delhi
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Voluntary PF is over and above the statutory PF of 12%. There is no limit for VPF. An employee can contribute as much as he or she may wish; earlier, there was a cap on this. The employee is not required to pay any contribution towards VPF.
Hope this helps.
Regards,
Atishai
From India, Delhi
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Correction:
"Voluntary PF is over and 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. The employer is not required to pay any contribution towards VPF."
Apologies...
From India, Delhi
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"Voluntary PF is over and 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. The employer is not required to pay any contribution towards VPF."
Apologies...
From India, Delhi
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I would tell you in layman's terms that the employer's contribution and the employee's contribution are a maximum of 12%. If you wish to save more, you can increase your contribution, but the employer's contribution will remain the same at 12% (fluctuations may occur based on company policy).
From India, Delhi
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From India, Delhi
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Wow, that's really useful information. I got it clearly. I thought VPF was something entirely different from the normal PF, but after your reply, I understood it's just an additional benefit contributed by employees to gain more benefits in the future. Am I correct? Thank you. :icon1:
From India, Madras
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From India, Madras
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Dear Balaji,
Voluntary contribution depends on the employee; he can contribute up to 100%. However, you need to take permission from EPFO. As for the employer, the maximum contribution is 12%. If the employer is willing to pay more towards EPF, they can do so.
Thank you.
From India, Bangalore
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Voluntary contribution depends on the employee; he can contribute up to 100%. However, you need to take permission from EPFO. As for the employer, the maximum contribution is 12%. If the employer is willing to pay more towards EPF, they can do so.
Thank you.
From India, Bangalore
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Dear All,
In my view, the maximum contribution towards PF, including VPF, is 20%. The employer's contribution will be restricted to 12% only. Approval is needed from the RPFC office. The employee is entitled to interest on such accumulations. The employer's service charge will increase to some extent (0.01%).
Hope this is the latest status.
Regards,
ACCHR
From India, Mumbai
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In my view, the maximum contribution towards PF, including VPF, is 20%. The employer's contribution will be restricted to 12% only. Approval is needed from the RPFC office. The employee is entitled to interest on such accumulations. The employer's service charge will increase to some extent (0.01%).
Hope this is the latest status.
Regards,
ACCHR
From India, Mumbai
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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.
From India, Gurgaon
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From India, Gurgaon
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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%.
From India, Ghaziabad
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From India, Ghaziabad
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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 India, Calcutta
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From India, Calcutta
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From our salary, 12% is deducted as PF. I have some doubt on this. How do we, as employees, track whether that deduction along with the employer's contribution is deposited correctly into our PF account? Also, how can we track the total available balance in our PF account?
Regards, Saranya
From India, Madras
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Regards, Saranya
From India, Madras
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There is no ceiling on the contribution of VPF. The VPF contribution is only based on the willingness of the employee and should be a specific percentage of the PF wage, not a fixed amount like Rs. 1000/- or Rs. 500/-. It should always be a certain percentage of the PF wage. There is no need to pay the employer contribution for this. It is a voluntary Provident Fund contribution by the employee. Employees generally opt for VPF for IT purposes and savings.
KALIDAS
From India, Hyderabad
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KALIDAS
From India, Hyderabad
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I completely agree with Atishai. VPF is the cotribution made voulintarily by the employee towards his pf a/c. Regards, Sashmita
From India, Delhi
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From India, Delhi
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There is no limit to what an employee should contribute in VPF; it means he/she can contribute 100% of their basic+DA salary. The employer will not contribute at the same rate as the employee. The employer will only contribute the 10% or 12% that applies to the establishment.
Best Regards
From India, Nagpur
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Best Regards
From India, Nagpur
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Dear Senior,
Kindly give me some information on the Voluntary Provident Fund (VPF) as soon as possible. I need the info. My major doubt is, is there any employer contribution in VPF, or is the contribution only from the employee's side in the case of VPF? Also, tell me the minimum and maximum amount or percentage of VPF. Please do reply.
Regards,
Bala Sandhya SL
---
The VPF means it depends upon you how much money you desire or how much percentage of your basic salary to deduct from your salary and deposit along with your regular PF deposit, i.e., 12% + 12% from the employer. On VPF, the employer does not have any liability; it is your own, and you will get the same interest as you are getting on the regular PF. Also, you cannot withdraw in between, only on retirement or resignation. This is as per my knowledge.
Sunil Prabhakar
Addl. Manager HR
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Kindly give me some information on the Voluntary Provident Fund (VPF) as soon as possible. I need the info. My major doubt is, is there any employer contribution in VPF, or is the contribution only from the employee's side in the case of VPF? Also, tell me the minimum and maximum amount or percentage of VPF. Please do reply.
Regards,
Bala Sandhya SL
---
The VPF means it depends upon you how much money you desire or how much percentage of your basic salary to deduct from your salary and deposit along with your regular PF deposit, i.e., 12% + 12% from the employer. On VPF, the employer does not have any liability; it is your own, and you will get the same interest as you are getting on the regular PF. Also, you cannot withdraw in between, only on retirement or resignation. This is as per my knowledge.
Sunil Prabhakar
Addl. Manager HR
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Dear friends,
What is ESIC? According to my knowledge, it provides some benefits for sickness and others. Suppose we are not taking any benefits, then what happens according to this Act? Can anyone explain this act? Please.
Thank you.
From India, Bhopal
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What is ESIC? According to my knowledge, it provides some benefits for sickness and others. Suppose we are not taking any benefits, then what happens according to this Act? Can anyone explain this act? Please.
Thank you.
From India, Bhopal
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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 a higher rate.
But the employer should pay only 12% on the basic rate. An employee can deduct the Provident Fund up to 32% of his basic. For this, he gets an 8.5% interest rate.
- Pravin
From India, Pune
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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 a higher rate.
But the employer should pay only 12% on the basic rate. An employee can deduct the Provident Fund up to 32% of his basic. For this, he gets an 8.5% interest rate.
- Pravin
From India, Pune
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Voluntary contribution is that which the individual wishes to deposit in his/her provident fund. It can be any amount. The statutory deduction is a minimum of 12% from the employee's side and 12% from the employer's side. However, voluntary contribution depends on the individual and the amount they are able to set aside from their salary on a monthly basis. The advantages include income tax savings, a higher rate of interest, etc.
From India, Dehra Dun
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From India, Dehra Dun
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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
From India, Madras
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From India, Madras
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Hi,
As per my knowledge, the total PF contribution is 24% + 1.61% = 25.61%. Here, 24% means 12% from the employee and 12% from the employer. The remaining 1.61% is for PF admin charges. Within the 12% employee contribution, 8.33% is for EPS and 3.67% is for EPF.
Thank you.
From India, Hyderabad
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As per my knowledge, the total PF contribution is 24% + 1.61% = 25.61%. Here, 24% means 12% from the employee and 12% from the employer. The remaining 1.61% is for PF admin charges. Within the 12% employee contribution, 8.33% is for EPS and 3.67% is for EPF.
Thank you.
From India, Hyderabad
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Dear Bala,
The PF contribution is 12% both from the employer and employee sides. The 12% is compulsory, but if an employee wishes, he/she can increase the percentage of their PF share from the basic salary. However, the employer's contribution remains the same. There is no obligation on the employer to increase their share percentage in VPF.
If you need further clarification, please feel free to contact me at skh.1983@gmail.com.
Regards,
Shikha Jain
From India, Bangalore
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The PF contribution is 12% both from the employer and employee sides. The 12% is compulsory, but if an employee wishes, he/she can increase the percentage of their PF share from the basic salary. However, the employer's contribution remains the same. There is no obligation on the employer to increase their share percentage in VPF.
If you need further clarification, please feel free to contact me at skh.1983@gmail.com.
Regards,
Shikha Jain
From India, Bangalore
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Dear,
According to me, an employee can invest a maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF contributions. Most companies are obligated to pay 12% PF, giving employees the option to contribute the remaining 15% towards VPF. However, the company contributes only 12%.
For example:
Salary - Rs. 10,000.00
Employee Contribution - Rs. 1,200.00
Company's Share to EPF - Rs. 659.00
Company's Share to FPS - Rs. 541.00
Employee's Share towards VPF (Max 15%) - Rs. 1,500.00
However, given the current interest rates, investment patterns, and the availability of more options such as PPF/MFs, VPF does not hold significant appeal in the employee community. In the past, many employees' savings were solely through 'forced' deductions.
Thanks & Best Regards,
Venkat
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According to me, an employee can invest a maximum of 27% of his salary (Basic + any DA + Food concession, if any) towards PF contributions. Most companies are obligated to pay 12% PF, giving employees the option to contribute the remaining 15% towards VPF. However, the company contributes only 12%.
For example:
Salary - Rs. 10,000.00
Employee Contribution - Rs. 1,200.00
Company's Share to EPF - Rs. 659.00
Company's Share to FPS - Rs. 541.00
Employee's Share towards VPF (Max 15%) - Rs. 1,500.00
However, given the current interest rates, investment patterns, and the availability of more options such as PPF/MFs, VPF does not hold significant appeal in the employee community. In the past, many employees' savings were solely through 'forced' deductions.
Thanks & Best Regards,
Venkat
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Dear all, i want help in forming the hr policy for a new organization as i am also new in this field pls help
From India, Mumbai
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From India, Mumbai
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Dear All,
Enclosed is the document on the salient features of PF. The same can be downloaded from DKM Online - Download Section.
Hope this is helpful to all of us.
Regards,
Atishai
From India, Delhi
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Enclosed is the document on the salient features of PF. The same can be downloaded from DKM Online - Download Section.
Hope this is helpful to all of us.
Regards,
Atishai
From India, Delhi
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Hi all,
Voluntary PF is the contribution of the employee's own funds and not from the employer's side, with no limit. In our company, the contribution is restricted and compulsory at 12% from the employer's side, but employees can contribute more than 12%.
Thank you,
Tajender K. Bajaj
From India, Dehra Dun
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Voluntary PF is the contribution of the employee's own funds and not from the employer's side, with no limit. In our company, the contribution is restricted and compulsory at 12% from the employer's side, but employees can contribute more than 12%.
Thank you,
Tajender K. Bajaj
From India, Dehra Dun
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Hi, Can the employer restrict himself from paying PF contribution to employee earniong above Rs.6500. What is the legal procedure? Please update me
From India, Madras
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From India, Madras
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In the EPF Act, there is a limit of Rs. 6500/-, and according to that, employers are required to contribute @ 6500/-. However, if the basic salary of an employee is more than 6500/- at the time of joining and the employee is not in favor of EPF, then the employer has to take Form 11 from the employee. Employers are not required to contribute on the full basic, i.e., above 6500/-. Another point to note is that if an employee is covered under the EPF Act and after an increment, their basic salary increases and exceeds 6500/-, then in this case, the employee is also required to contribute up to Rs. 6500/- during their service.
From India, New Delhi
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From India, New Delhi
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Dear All,
VPF is over and above the statutory rate of 12%, which only the employee contributes to. The employer will not contribute anything towards the employee's VPF contribution. In fact, there is no ceiling on VPF. The entire amount of VPF earns tax benefits for the employee.
From India, Calcutta
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VPF is over and above the statutory rate of 12%, which only the employee contributes to. The employer will not contribute anything towards the employee's VPF contribution. In fact, there is no ceiling on VPF. The entire amount of VPF earns tax benefits for the employee.
From India, Calcutta
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If employee is not member of PF, he/she can deposit vpf only ? is yes what is the procedure of VPF
From India, Gurgaon
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From India, Gurgaon
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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
From India, Mumbai
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From India, Mumbai
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Their is CAP of 40 % on VPF ........................................................................................................
From United Kingdom
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From United Kingdom
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Dear Bala,
Actually, the contribution is 12% from the employee's side and 12% from the employer's side, plus some other administrative charges.
So, the government has set a minimum of 12% from the employee's contribution, and if the employee wishes to contribute more than 12%, they can voluntarily do so. Any additional contribution made by the employee beyond 12% is considered voluntary.
Mahesh
From India, Hyderabad
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Actually, the contribution is 12% from the employee's side and 12% from the employer's side, plus some other administrative charges.
So, the government has set a minimum of 12% from the employee's contribution, and if the employee wishes to contribute more than 12%, they can voluntarily do so. Any additional contribution made by the employee beyond 12% is considered voluntary.
Mahesh
From India, Hyderabad
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My employer is not providing felicity of VPF. How can I contribute in VPF? Is their any way ?
From India, Delhi
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From India, Delhi
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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.
From India, Mumbai
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From India, Mumbai
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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.
From India, Mumbai
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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.
From India, Mumbai
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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.
From India, Mumbai
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From India, Mumbai
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Voluntary PF is deducted upon the request of the employee by the employer from his/her salary, a fixed amount. VPF is not limited. It is similar to a Recurring Deposit opened in a bank. It is an extra saving amount that you contribute to the PF department, and interest will be calculated.
Thanks,
SANJIV GUPTA
From India, Delhi
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Thanks,
SANJIV GUPTA
From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx