We have all heard of EPF in our lifetime. But many of us are unaware of VPF. If you are a salaried employee, then trust me on this, you are required to know about the VPF
maximum limit. You must not only know about maximum VPF contribution but also be aware of the latest developments related to these terms.
For an additional three months, from June to August 2020, the Government of India shall pay the employee and employer contributions to the EPF accounts of the employees. The benefit is available to businesses with a maximum of 100 employees, 90% of whom are paid less than Rs 15,000 a month. For non-government organisations, the EPF contribution is now 10% rather than the previous 12%.
Invest in your dream property by taking home loans via NoBroker from the leading banks of India at interest rates starting at 7.3%.What is Voluntary Provident Fund and Voluntary PF Contribution Limit?
The employee's voluntary contribution to his provident fund account is known as the Voluntary Provident Fund (VPF). This contribution goes above and beyond the 12% that an employee is required to contribute to his EPF. Up to 100% of his Basic Salary and Dearness Allowance may be contributed in total. This very same percentage as the EPF is used to calculate interest.
Employers are not required to make investments in their employees' VPF portfolios. An employee also isn't required to make contributions to the Plan. Once a contribution is selected in the VPF, it cannot be changed or withdrawn before the initial 5-year base period has passed. At the beginning of each fiscal year, the Government of India sets the interest rate for the Voluntary Retirement Plan.
Who can invest in Voluntary Provident Fund?
The EPF is a continuation of the VPF. Only salaried employees who receive their payments through a certain salary account have access to the VPF option.
What is the maximum limit for VPF contribution?
You may invest 100% of your basic + dearness allowance in a VPF.
This is all you need to know about VPF
maximum limit.
Read More: What is the difference between VPF and PPF? How to check VPF balance? How to open VPF account?Your Feedback Matters! How was this Answer?
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What is the Maximum Limit for VPF Contribution?
Anku
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1 Answers
2 Year
2022-08-24T10:57:11+00:00 2022-08-24T10:57:12+00:00Comment
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