{"id":4114,"date":"2026-05-12T07:13:37","date_gmt":"2026-05-12T07:13:37","guid":{"rendered":"https:\/\/jumpp.finance\/blog\/?p=4114"},"modified":"2026-05-12T10:54:29","modified_gmt":"2026-05-12T10:54:29","slug":"voluntary-provident-fund","status":"publish","type":"post","link":"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/","title":{"rendered":"What is a Voluntary Provident Fund, and Why Are Salaried Employees Investing More in It?"},"content":{"rendered":"<div class='main-article-wrapper'>\n<p class=\"wp-block-paragraph\">Many salaried employees rely only on EPF for retirement savings without realising they can voluntarily invest more through VPF. With government-backed returns and tax benefits, VPF has become a popular long-term savings option in India. In this blog, learn everything about <strong>Voluntary Provident Fund (VPF).<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Voluntary_Provident_Fund_VPF\"><\/span>What is a Voluntary Provident Fund (VPF)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Voluntary Provident Fund (VPF)<\/strong> is an optional retirement savings scheme that allows salaried employees to contribute more money to their Employee Provident Fund (EPF) account beyond the mandatory EPF contribution.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under EPF, employees usually contribute 12% of their basic salary and dearness allowance.&nbsp;<\/li>\n\n\n\n<li>With VPF, employees can voluntarily increase this contribution and invest up to 100% of their basic salary and dearness allowance in their provident fund account.<\/li>\n\n\n\n<li>The VPF contribution earns the same interest rate as EPF, which is currently around 8.25% for FY 2025-26.&nbsp;<\/li>\n\n\n\n<li>The scheme is backed by the Government of India, making it one of the safer long-term savings options for salaried individuals.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Also, check how to do <a href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/financial-planning-for-salaried-employees\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial planning for salaried employees<\/a>.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large app-download-banner\"><a href=\"https:\/\/jumpp.finance\/download-app\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"288\" src=\"https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money-1024x288.png\" alt=\"Mutual fund Investment app- Grow Your Money\" class=\"wp-image-4108\" srcset=\"https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money-1024x288.png 1024w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money-300x84.png 300w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money-768x216.png 768w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money-520x146.png 520w, https:\/\/jumpp.finance\/blog\/wp-content\/uploads\/2026\/05\/Investment-app-Grow-Your-Money.png 1376w\" sizes=\"auto, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">VPN in India<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Information&nbsp;<\/strong><\/td><td><strong>Details&nbsp;<\/strong><\/td><\/tr><tr><td>VPF full form<\/td><td>The VPF full form is Voluntary Provident Fund.<\/td><\/tr><tr><td>VPF interest rate<\/td><td>The current VPF interest rate is 8.25% for FY 2025-26, the same as the EPF interest rate.<\/td><\/tr><tr><td>VPF contribution limit<\/td><td>Employees can contribute up to 100% of their basic salary and dearness allowance under VPF.<\/td><\/tr><tr><td>VPF maximum limit<\/td><td>The VPF maximum contribution can go up to 100% of the employee\u2019s basic salary and dearness allowance.<\/td><\/tr><tr><td>VPF withdrawal rules<\/td><td>VPF withdrawals after five years of continuous service are generally tax-free, while early withdrawals may attract tax.<\/td><\/tr><tr><td>Is VPF taxable<\/td><td>VPF may become taxable if annual employee EPF and VPF contributions exceed the prescribed threshold or if withdrawals happen before eligible conditions are met.<\/td><\/tr><tr><td>VPF tax benefits<\/td><td>VPF offers tax deduction benefits under Section 80C subject to applicable limits under the old tax regime.<\/td><\/tr><tr><td>VPF tax exemption<\/td><td>Eligible VPF contributions, interest, and maturity amounts may qualify for tax exemptions under prevailing income tax rules.<\/td><\/tr><tr><td>Is VPF tax-free<\/td><td>VPF can be tax-free if contribution and withdrawal conditions under EPF tax rules are satisfied.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Voluntary_Provident_Fund_VPF_Rules_in_India\"><\/span>Voluntary Provident Fund (VPF) Rules in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The rules related to the <strong>Voluntary Provident Fund (VPF)<\/strong> decide how salaried employees can contribute, withdraw funds, claim tax benefits, and transfer their provident fund balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Explore top <a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/how-to-save-income-tax\/\">tax saving options <\/a><a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/how-to-save-income-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">in<\/a><a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/how-to-save-income-tax\/\"> 2026<\/a>!<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">VPF Eligibility<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Voluntary Provident Fund (VPF) eligibility is exclusive to salaried employees already contributing to the Employees&#8217; Provident Fund (EPF).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">VPF Contribution and Enrollment Rules<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employees Can Contribute More Than Mandatory EPF<\/strong><br>Under VPF, employees can voluntarily contribute up to 100% of their basic salary and dearness allowance towards their provident fund account.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employer Does Not Match Extra Contribution<\/strong><br>The employer is only required to contribute towards the mandatory EPF portion. Any additional VPF contribution is made only by the employee.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Contribution Changes Usually Happen at the Start of the Financial Year<\/strong><br>Most employers allow employees to revise or opt for VPF contributions at the beginning of a financial year based on payroll policies.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VPF Uses the Same EPF Account<\/strong><br>VPF is not a separate investment account. The contribution gets added directly to the employee\u2019s existing EPF account linked through the Universal Account Number (UAN).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">VPF Tax Benefits<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tax Deduction Under Section 80C<\/strong><br>VPF contributions qualify for a tax deduction under Section 80C up to the applicable annual limit under the old tax regime.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Interest Above the Prescribed Threshold May Become Taxable<\/strong><br>If the combined employee contribution towards EPF and VPF exceeds the prescribed annual threshold, the interest earned on the excess contribution becomes taxable according to applicable income tax rules.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Long-Term Tax Benefits<\/strong><br>VPF is generally considered a tax-efficient retirement savings option because eligible contributions, interest, and maturity amounts may qualify for tax benefits subject to prevailing tax laws.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">VPF Withdrawal Rules&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Five-Year Rule for Tax-Free Withdrawal<\/strong><br>Withdrawals made after completing five years of continuous service are generally tax-free under applicable EPF rules.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Early Withdrawal May Attract Tax<\/strong><br>If funds are withdrawn before completing five continuous years of service, the withdrawn amount and interest may become taxable.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Partial Withdrawals Are Allowed for Specific Needs<\/strong><br>Employees may apply for partial withdrawals or advances for approved purposes such as:<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Medical emergencies<\/li>\n\n\n\n<li>Marriage expenses<\/li>\n\n\n\n<li>Higher education<\/li>\n\n\n\n<li>Home purchase or construction<\/li>\n\n\n\n<li>Home loan repayment<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">VPF Job Change and Transfer Rules<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VPF Balance Can Be Transferred During Job Switches<\/strong><br>Employees do not need to close their VPF contribution account while changing jobs. The accumulated balance can continue through the same UAN-linked EPF account.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>UAN Helps Maintain Continuity<\/strong><br>The Universal Account Number (UAN) allows employees to transfer EPF and VPF balances smoothly between employers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Open_a_Voluntary_Provident_Fund_VPF_Account\"><\/span>How to Open a Voluntary Provident Fund (VPF) Account<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You do not need to open a separate account for a <strong>Voluntary Provident Fund (VPF)<\/strong>. VPF works through your existing Employee Provident Fund (EPF) account.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Contact Your Employer<\/strong><br>Reach out to your company\u2019s HR, payroll, or finance department and inform them that you want to start Voluntary Provident Fund (VPF) contributions.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Many companies usually accept VPF requests at the beginning of the financial year or during the annual tax declaration period.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Fill the VPF Request Form<\/strong><br>Your employer may provide an internal VPF declaration or enrollment form.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In the form, you need to mention:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The percentage of salary you want to contribute, or<\/li>\n\n\n\n<li>The fixed monthly amount you want deducted towards VPF<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The contribution is deducted from your basic salary and dearness allowance.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Submit the Form to Payroll or HR<\/strong><br>After filling in the details, submit the signed form to your payroll or HR department for processing.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The request is then linked to your existing Universal Account Number (UAN) and EPF account.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Salary Deductions Begin Automatically<\/strong><br>Once approved, the additional VPF contribution starts getting deducted automatically from your monthly salary along with the regular EPF deduction.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Track Your VPF Balance<\/strong><br>You can check your EPF and VPF contributions through:<br>&#8211; Salary slips<br>&#8211; EPFO passbook<br>&#8211; <a href=\"https:\/\/passbook.epfindia.gov.in\/MemberPassBook\/Login?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">EPFO Member Portal<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Check_VPF_Balance\"><\/span>How to Check VPF Balance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Since the <strong>Voluntary Provident Fund (VPF)<\/strong> is linked directly to your Employee Provident Fund (EPF) account, you can check your VPF balance through the same EPF platforms and services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1. Check VPF Balance Through EPFO Passbook Portal<\/strong><br>This is one of the easiest ways to view your detailed EPF and VPF contributions separately.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Visit the <a href=\"https:\/\/passbook.epfindia.gov.in\/MemberPassBook\/Login?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">EPFO Member Passbook Portal<\/a><\/li>\n\n\n\n<li>Log in using your Universal Account Number (UAN), password, and captcha<\/li>\n\n\n\n<li>Verify with the OTP sent to your registered mobile number<\/li>\n\n\n\n<li>Select your Member ID<\/li>\n\n\n\n<li>Open the passbook to check your employee contribution details<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Your VPF contribution usually appears under the employee share section along with the regular EPF contribution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2. Check VPF Balance Through UMANG App<\/strong><strong><br><\/strong>Employees can also track their provident fund balance through the government\u2019s UMANG mobile application.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Download the <a href=\"https:\/\/web.umang.gov.in\/landing\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">UMANG App<\/a><\/li>\n\n\n\n<li>Open EPFO services under Employee-Centric Services<\/li>\n\n\n\n<li>Select View Passbook<\/li>\n\n\n\n<li>Enter your UAN and OTP<\/li>\n\n\n\n<li>View or download the passbook statement<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3. Check VPF Balance Through SMS<\/strong><strong><br><\/strong>EPFO also provides balance details through SMS services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Send this message from your registered mobile number:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">EPFOHO UAN<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Send it to:<br>7738299899<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To receive the message in a regional language, add the first three letters of the preferred language at the end.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Example:<br>EPFOHO UAN HIN<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4. Check VPF Balance Through Missed Call<\/strong><strong><br><\/strong>Employees can also get their PF balance instantly through a missed call service.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Give a missed call to 9966044425 from your registered mobile number<\/li>\n\n\n\n<li>The call disconnects automatically<\/li>\n\n\n\n<li>You receive an SMS with your provident fund balance details<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How to check the VPF balance?<\/strong><br>You can check your VPF balance through the EPFO portal, UMANG app, SMS service, or missed call facility because VPF contributions are linked directly to your EPF account.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EPF_vs_PPF_vs_VPF_vs_NPS_in_2026\"><\/span>EPF vs PPF vs VPF vs NPS in 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">EPF, VPF, and PPF act as ultra-safe havens by investing in stable government and corporate bonds for guaranteed returns, while NPS serves as a growth engine that targets higher wealth through market-linked equity exposure.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>EPF<\/strong><\/td><td><strong>PPF<\/strong><\/td><td><strong>VPF<\/strong><\/td><td><strong>NPS<\/strong><\/td><\/tr><tr><td>Full Form<\/td><td>Employees\u2019 Provident Fund<\/td><td>Public Provident Fund<\/td><td>Voluntary Provident Fund<\/td><td>National Pension System<\/td><\/tr><tr><td>Who Can Invest<\/td><td>Salaried employees in eligible organisations<\/td><td>Any Indian citizen<\/td><td>Salaried employees with EPF account<\/td><td>Indian citizens aged 18 to 70<\/td><\/tr><tr><td>Contribution Type<\/td><td>Mandatory for eligible employees<\/td><td>Voluntary<\/td><td>Voluntary additional PF contribution<\/td><td>Voluntary retirement investment<\/td><\/tr><tr><td>Employer Contribution<\/td><td>Yes, employer contributes<\/td><td>No<\/td><td>No extra employer contribution on voluntary amount<\/td><td>Employer contribution possible in corporate NPS<\/td><\/tr><tr><td>Current Interest \/ Returns (May 2026)<\/td><td>8.25%<\/td><td>7.1%<\/td><td>8.25%<\/td><td>Around 9% to 12% market-linked returns<\/td><\/tr><tr><td>Tax Benefits<\/td><td>Section 80C benefits available<\/td><td>Section 80C benefits available<\/td><td>Section 80C benefits available<\/td><td>Section 80C + additional \u20b950,000 deduction under Section 80CCD(1B)<\/td><\/tr><tr><td>Tax on Maturity<\/td><td>Generally tax-free after eligible conditions<\/td><td>Fully tax-free<\/td><td>Generally tax-free after eligible conditions<\/td><td>Partial maturity amount taxable under current rules<\/td><\/tr><tr><td>Lock-In Period<\/td><td>Till retirement or eligible withdrawal<\/td><td>15 years<\/td><td>Similar to EPF rules<\/td><td>Till retirement age<\/td><\/tr><tr><td>Partial Withdrawal<\/td><td>Allowed under EPF rules<\/td><td>Allowed after a specified period<\/td><td>Allowed under EPF rules<\/td><td>Partial withdrawals allowed under NPS rules<\/td><\/tr><tr><td>Liquidity<\/td><td>Moderate<\/td><td>Low<\/td><td>Moderate<\/td><td>Lower liquidity compared to PF schemes<\/td><\/tr><tr><td>Suitable For<\/td><td>Salaried employees building retirement corpus<\/td><td>Conservative long-term investors<\/td><td>Salaried employees wanting higher PF savings<\/td><td>Investors seeking higher retirement growth through market exposure<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>If you are comparing retirement investment options beyond VPF, read our guide on <a href=\"https:\/\/jumpp.finance\/blog\/financial-wellness\/what-is-annuity-in-nps\/\" target=\"_blank\" rel=\"noreferrer noopener\">what is annuity in NPS<\/a> to understand how NPS retirement income works in India.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Which Option is Better?<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EPF<\/strong> works as a retirement foundation for salaried employees because both employee and employer contribute regularly.<\/li>\n\n\n\n<li><strong>PPF<\/strong> is suitable for conservative investors who want government-backed long-term savings without employer dependency.<\/li>\n\n\n\n<li><strong>VPF<\/strong> is useful for salaried employees looking to increase retirement savings with the same EPF interest rate and lower investment risk.<\/li>\n\n\n\n<li><strong>NPS<\/strong> is suitable for individuals comfortable with market-linked investments and looking for potentially higher long-term retirement growth.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Disclaimer\u2013<\/strong>&nbsp;The rankings and figures in this article have been compiled from multiple verified reports, credible news sources, and public financial data available as of 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All values are approximate and may vary with newer updates, revisions, or changes in official records.<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Voluntary_Provident_Fund_VPF_%E2%80%93_FAQs\"><\/span>Voluntary Provident Fund (VPF) &#8211; FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1778562674889\"><strong class=\"schema-faq-question\"><strong>Which is better, PPF or VPF?<\/strong><\/strong> <p class=\"schema-faq-answer\">VPF may be better for salaried employees who already have an EPF account and want higher retirement savings with employer-linked provident fund benefits. PPF is suitable for both salaried and self-employed individuals looking for long-term tax-saving investments.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562675792\"><strong class=\"schema-faq-question\"><strong>Is VPF a good option?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, VPF is considered a good long-term investment option for salaried employees because it offers government-backed returns, disciplined savings, and an interest rate of 8.25% for FY 2025-26.<br><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562677107\"><strong class=\"schema-faq-question\"><strong>What happens if VPF exceeds 2.5 lakh?<\/strong><\/strong> <p class=\"schema-faq-answer\">If the combined employee contribution towards EPF and VPF exceeds \u20b92.5 lakh in a financial year, the interest earned on the excess contribution becomes taxable according to current income tax rules.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562677643\"><strong class=\"schema-faq-question\"><strong>Which is better NPS or VPF?<\/strong><\/strong> <p class=\"schema-faq-answer\">VPF offers fixed government-backed returns with lower risk, while NPS provides market-linked returns that may offer higher growth but involve higher volatility. The better option depends on an individual\u2019s risk appetite and retirement goals.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562678242\"><strong class=\"schema-faq-question\"><strong>Is VPF better than FD?<\/strong><\/strong> <p class=\"schema-faq-answer\">VPF often provides higher long-term interest rates compared to many bank fixed deposits and also offers tax benefits for eligible salaried employees, making it attractive for retirement-focused savings.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562721323\"><strong class=\"schema-faq-question\"><strong>How much does VPF earn?<\/strong><\/strong> <p class=\"schema-faq-answer\">VPF currently earns 8.25% annual interest for FY 2025-26, which is the same interest rate applicable to EPF accounts.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562721983\"><strong class=\"schema-faq-question\"><strong>Can I withdraw VPF after 5 years?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, VPF withdrawals after five continuous years of service are generally considered tax-free under applicable EPF rules.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562738696\"><strong class=\"schema-faq-question\"><strong>What are the risks associated with VPF?<\/strong><\/strong> <p class=\"schema-faq-answer\">VPF is considered relatively low-risk because it is government-backed. However, it has lower liquidity compared to some investments because withdrawals are restricted under EPF rules and long-term holding conditions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562739414\"><strong class=\"schema-faq-question\"><strong>How much maximum VPF can be deducted from salary?<\/strong><\/strong> <p class=\"schema-faq-answer\">Employees can voluntarily contribute up to 100% of their basic salary and dearness allowance towards VPF.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1778562755360\"><strong class=\"schema-faq-question\"><strong>What is the difference between PF and VPF?<\/strong><\/strong> <p class=\"schema-faq-answer\">PF or EPF includes the mandatory provident fund contribution deducted from salary, while VPF is the additional voluntary contribution made by employees beyond the mandatory EPF contribution.<\/p> <\/div> <\/div>\n<\/div><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#What_is_a_Voluntary_Provident_Fund_VPF\" >What is a Voluntary Provident Fund (VPF)?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#Voluntary_Provident_Fund_VPF_Rules_in_India\" >Voluntary Provident Fund (VPF) Rules in India<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#How_to_Open_a_Voluntary_Provident_Fund_VPF_Account\" >How to Open a Voluntary Provident Fund (VPF) Account<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#How_to_Check_VPF_Balance\" >How to Check VPF Balance<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#EPF_vs_PPF_vs_VPF_vs_NPS_in_2026\" >EPF vs PPF vs VPF vs NPS in 2026<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/#Voluntary_Provident_Fund_VPF_%E2%80%93_FAQs\" >Voluntary Provident Fund (VPF) &#8211; FAQs<\/a><\/li><\/ul><\/nav><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many salaried employees rely only on EPF for retirement savings without realising they can voluntarily invest more through VPF. With government-backed returns and tax benefits, VPF has become a popular long-term savings option in India. In this blog, learn everything about Voluntary Provident Fund (VPF). What is a Voluntary Provident Fund (VPF)? The Voluntary Provident &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/jumpp.finance\/blog\/financial-management\/personal-finance\/voluntary-provident-fund\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What is a Voluntary Provident Fund, and Why Are Salaried Employees Investing More in It?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":4135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1001],"tags":[2932,2929,2934,2928,2924,2926,2930,2925,2922,2936,2935,2931,2933,2927,2923],"class_list":["post-4114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","tag-how-to-check-vpf-balance","tag-how-to-open-vpf-account","tag-is-vpf-tax-free","tag-is-vpf-taxable","tag-voluntary-provident-fund","tag-vpf-contribution","tag-vpf-contribution-limit","tag-vpf-full-form","tag-vpf-interest-rate","tag-vpf-maximum-limit","tag-vpf-rules","tag-vpf-tax-benefits","tag-vpf-tax-exemption","tag-vpf-withdrawal-rules","tag-what-is-vpf"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Voluntary Provident 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VPF?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"VPF may be better for salaried employees who already have an EPF account and want higher retirement savings with employer-linked provident fund benefits. PPF is suitable for both salaried and self-employed individuals looking for long-term tax-saving investments.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562675792\",\"position\":2,\"url\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562675792\",\"name\":\"Is VPF a good option?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, VPF is considered a good long-term investment option for salaried employees because it offers government-backed returns, disciplined savings, and an interest rate of 8.25% for FY 2025-26.<br>\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562677107\",\"position\":3,\"url\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562677107\",\"name\":\"What happens if VPF exceeds 2.5 lakh?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"If the combined employee contribution towards EPF and VPF exceeds \u20b92.5 lakh in a financial year, the interest earned on the excess contribution becomes taxable according to current income tax rules.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562677643\",\"position\":4,\"url\":\"https:\\\/\\\/jumpp.finance\\\/blog\\\/financial-management\\\/personal-finance\\\/voluntary-provident-fund\\\/#faq-question-1778562677643\",\"name\":\"Which is better NPS or VPF?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"VPF offers fixed government-backed returns with lower risk, while NPS provides market-linked returns that may offer higher growth but involve higher volatility. 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