If you want to increase your PF contribution, this question: “
Can I increase my PF contribution
?” might come to your mind. Let me say that yes, you can increase your Provident Fund (PF) contribution in India through the Voluntary Provident Fund (VPF) scheme. Under the Employees’ Provident Fund (EPF) scheme, the employee’s mandatory contribution is 12% of their basic salary, and the employer matches this. However, if you wish to contribute more than the mandated 12%, the VPF allows you to voluntarily increase your share of the contribution.
How to Increase My PF Contribution?
Under VPF, you can choose to contribute a higher percentage of your basic salary and dearness allowance to your PF account. There is no upper limit to the percentage you can contribute, unlike the mandatory 12%.
However, the employer is not obligated to increase their share beyond the standard 12%.
Contributions made to the EPF, including VPF, are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of Rs. 1.5 lakh per year.
The interest earned on the EPF contributions (currently around 8.15% annually) is also tax-free, provided the total interest does not exceed Rs. 2.5 lakh for employees who don’t contribute more than Rs. 2.5 lakh annually.
To increase your contribution, inform your employer or HR department that you want to opt for VPF. They will update the payroll system to reflect the increased contribution.
Your query about
can I increase my PF contribution
should be solved.
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Authors Of The Question
Can I Increase my PF Contribution?
vishwas
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34 days
2024-10-18T07:39:24+00:00 2024-10-18T07:39:24+00:00Comment
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