Voluntary Provident Fund (VPF)

VPF is applicable for employees who are covered under the Employee’s Provident Fund.

How can employee opt for VPF?

Any employee can opt for VPF by mentioning the details like what is the percentage
he/she wants to opt on his/her Basic+DA+Food Allowance and give the same in writing
to the employer.

After that the mentioned percentage of amount on Basic+DA+Food Allowance will be

contributed towards VPF.

His/Her contribution will continue till he/she will be in service.

From the Employer Side: Employer can add this VPF amount also along with EPF
amount under contribution recovered from Employee while mentioning Form – 12A or
can have two separate columns one for EPF and other for VPF. The same thing in PF
Challan can be mentioned separate box given under Employee’s Provident Fund which
says VPF.

In yearly returns we can mention under a column called “RATE OF HIGHER

VOLUNTARY CONTIRBUTION (If Any)” in Form 6A and same kind of column can
be added in Form 3A also this will help to have more clarity.

When it comes to mentioning in the Withdrawal form i.e particularly in Form-19 we

need to mention the total amount of employee contribution which would include both
EPF and VPF.

Note: There is no limit on the percentage that one can choose to opt. And Admin/EDLI
Charges are applicable only on the total wages and thus it will not make employer to pay
extra charges.
 Provision of Loan from Employee Provident Fund
We have three different types of Loans under Employee Provident Fund,

1) Loan for House Construction

Under this an employee covered under EPF can opt for Loan provided the site
for construction is in the name of the Member or in the name of Spouse only. For this the
minimum number of service to be completed is five years.

2) Loan for Marriage of Family Member

Under this an employee covered under EPF can opt for Loan for Marriage
of any his/her Marriage or of his/her siblings. For this the minimum number of service to
be completed is seven years.

3) Loan for Higher Education

Under this an employee covered under EPF can opt for Loan for Higher
Education of their children only. For this the minimum number of service to be
completed is seven years.

Note 1: In all the above case the amount that one can get will depend on the amount of
contribution by that particular member. And this is not a refundable loan as the amount
given to you will be from your contribution only. Loan will be given on 15.67%, which
includes 12% contribution of employees and 3.67% contribution of employer only and
not on remaining 8.33%, which is Pension Fund.

Kindly share if I have missed out important points and also write in if you have more
questions about the same to my mail ID amithrm@gmail.com Let me also know was this
information useful to you people.