Is there any limit for VPF contribution?
Mia Ramsey
Published Mar 11, 2026
In an EPF account, a person has to mandatorily give 12% of his Basic Salary and Dearness Allowance towards the fund. In a VPF, it is a voluntary contribution with the maximum limit at 100%.
Can we increase or decrease VPF contribution?
You can also request your employer to increase your contribution towards VPF by writing in request, asking for additional deduction from salary.
Is it good to contribute to VPF?
Through VPF, an employee can contribute a sum higher than the mandatory 12% from one’s salary under EPF. VPF also gives the same tax benefits as EPF. It falls under the exempt-exempt-exempt (EEE) tax structure—you get tax deduction benefit at the time of investment, and there’s no tax payable on accrual or withdrawal.
Is VPF taxable in 2021?
As announced in the Budget 2021, if deposits in Employees’ Provident Fund (EPF) and Voluntary Provident Fund (VPF) by an employee exceed Rs 2.5 lakh in a financial year, then the interest earned on the contributions exceeding Rs 2.5 lakh will be taxable in the hands of an employee.
Can I invest more than 1.5 lakhs in VPF?
If you don’t want to get into the dilemma of choosing and buying the most appropriate investment option to avail tax benefits, then you can simply increase your VPF so that the EPF and VPF contributions total up to Rs 150000. The interest earned and maturity amount is tax exempt.
Is VPF better than PPF?
A VPF account is only meant for salaried employees while a PPF account can be opened by self –employed and people working at unorganized sectors….Difference between PPF & VPF.
| Features | PPF | VPF |
|---|---|---|
| Employer Contribution | N.A | N.A |
| Taxation on Maturity Returns | None | Tax Free |
| Tax Deduction | As per section 80 C | As per section 80 C |
What is the lock in period for VPF?
Comparison of VPF With PPF
| Parameter | Voluntary Provident Fund |
|---|---|
| Lock-in period | Locked-in until the employee retires or is meeting a certain condition to make a premature withdrawal |
| Who is contributing? | Employee alone (employer’s contribution is restricted to the minimum requirement) |
| Extension beyond maturity | Not possible |
Can I withdraw my VPF anytime?
There is no pre-fixed amount of withdrawal which can be made from a VPF account. However, withdrawals are possible only after completion of 5 years of continuous contributions in the scheme.
What is VPF salary?
Voluntary Provident Fund
VPF (Voluntary Provident Fund) An employee can contribute 100% of his basic salary and DA. Interest offered would be the same as EPF and this amount would be credited to EPF Scheme account only as there is no separate account for VPF.
Is VPF better or PPF?
PPF stands for Public Provident Fund and VPF for Voluntary Provident Fund….Difference between PPF & VPF.
| Features | PPF | VPF |
|---|---|---|
| Maturity | Can be extended indefinitely by extending for 5 years each after that. | Can transfer account to new company till retirement. |
| Maximum Loan | 50% after 6 years | Partial withdrawals is permitted |
