People look for schemes to save as much money as he can so that in his old age, he can live without much stress. I recently joined a company and saw that from my salary an amount is deducted. I asked my manager about it and she asked me, do you know what is Voluntary Provident Fund Contribution? I had heard about it before but did not know much about it so I said not much. It was she who explained everything to me so let me tell you about it vividly here.
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What is VPF in salary?
VPF, also known as Voluntary Retirement Fund is an amount of money which is deducted from the employee’s salary. It is basically a government-backed investment cum retirement planning scheme that helps an employee to save money and use it after his retirement. He is to be voluntarily or compulsorily contributing 12% of his basic salary monthly. The employer also contributes the same amount.
What is VPF and its benefits?
After having an idea about the VPF, you must now be knowing why it is a good idea to invest here. So let me share some advantages of having VPF:
The scheme is managed by the government and has a fixed interest accrual
Easy to apply
High interest rate standing at 8.5% per annum
The account can be transferred as well whenever you change job/company
I hope the concept of what is Voluntary Provident Fund Contribution is all clear to you now.
Read More:
What is Employee Provident Fund?
What is Statutory Provident Fund?
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What Is Voluntary Provident Fund?
Umang Saraf
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3 Year
2022-08-22T10:05:30+00:00 2022-08-31T13:59:24+00:00Comment
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