What is Voluntary Provident Fund (VPF)?
Voluntary Provident Fund (VPF) is a savings scheme offered to employees, allowing them to contribute voluntarily to their Employee Provident Fund (EPF) account over and above the mandatory contribution. The contributions made to the VPF are deducted from the employee’s salary and are eligible for tax benefits, offering a higher interest rate compared to regular savings accounts. The employee can choose the contribution amount, subject to limits set by the government, and the accumulated corpus is accessible at retirement or under specific conditions.