VPF is just extra money you choose to put into your existing EPF account. If you are a salaried employee covered by EPFO, you already pay 12 percent of your basic pay plus dearness allowance to EPF. With VPF, you can add more—up to 100 percent of basic + DA—through your company’s payroll. This extra amount earns the same interest as EPF.

Why it’s attractive now

For FY 2024–25 (and notified again for FY 2025-26), EPF pays 8.25 percent a year. VPF gets that same rate because it sits inside EPF. That’s higher than many bank FDs. It’s also backed by EPFO, so the risk is low. Because the money is deducted from salary, it’s an easy way to save regularly.

Key benefits and tax treatment

Your VPF contribution can be claimed under Section 80C (within the Rs 1.5 lakh overall limit). Interest is t

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