What is VPF?
Voluntary Provident Fund (VPF) is the contributions made by the employees that are over and above the minimum contribution set by the Employees’ Provident Fund Organisation (EPFO). However, the employer will not contribute more than 12% of the basic salary, regardless of how much the employee contributes.
What is the PF interest rate for 2021-22?
8.5 per cent
On the matter related to maintaining the 8.5 per cent interest rate for 2021-22 as decided for 2020-21, Union Labour Minister and CBT head Bhupender Yadav told PTI that the decision would be taken on the basis of income projection for the financial year.
What is current EPF interest rate?
8.5%
The government reviews the interest rate on EPF accounts regularly. For the FY 2019-20, the interest rate notified is 8.5%….EPF Interest Rates for the Last 15 Years.
| Financial Year | Rate of Interest p.a. |
|---|---|
| 2019-2020 | 8.50% |
| 2018-2019 | 8.65% |
| 2017-2018 | 8.55% |
| 2016-2017 | 8.65% |
Can I withdraw VPF after 5 years?
Withdrawals after the 5-year lock-in period are completely tax-free. There is income tax exemption at all stages -contribution, investment, accumulation and returns and also at the time of withdrawal. Employees can access the VPF money for reasons like marriage, house purchase, children’s education, etc.
What is the lock-in period for VPF?
5 years
The VPF interest rate is similar to the EPF scheme. It is not mandatory for employers or employees to contribute to the VPF. However, the scheme has a lock-in period of 5 years. The rate of interest of VPF is decided by the Government of India on a yearly basis.
When can I withdraw my PF?
EPF can be partially or completely withdrawn. Complete withdrawal is allowed when an individual retires or if he/she remains unemployed for more than 2 months. Whereas, partial EPF withdrawal is allowed under certain circumstances including medical purposes, marriage, home loan repayment, etc.
How is PF balance calculated?
To calculate your provident fund contribution, add both employer and employee contributions. The employer contributes 12% towards the PF balance, whereas the employee contributes 3.67% towards the PF balance. The employer’s contribution of 12% towards the PF balance depends on the employee’s basic pay.
Can I invest in EPF?
Only employees of companies registered under the EPF Act can invest in the EPF or PF. Both the employer and employee are required to contribute 12% of the employee’s basic salary and dearness allowance every month to the EPF account. PPF or Public Provident Fund is a government-supported savings scheme.
Can I withdraw VPF after resignation?
You cannot discontinue or withdraw out of a VPF scheme in the middle of the year. VPF scheme can be availed only by salaried professionals enrolled with the EPF. If the direct tax code comes into effect, the entire maturity amount becomes taxable.
How many times VPF can be withdrawn?
Lock-in period As per Voluntary Provident Fund withdrawal rules, contribution to a VPF account is subject to a maturity period of 5 years. Therefore, an individual cannot withdraw any sum from their Voluntary Provident Fund before the completion of 5 years sans repercussions.