According to the rules of EPFO, 12 percent of the basic salary and dearness allowance (DA) of any employee is deducted and goes into the PF account every month. The same amount is contributed by the company as well. At present, interest of 8.25% is being given on this contribution deposited every month. This interest is better than the interest received on all government schemes. But if you want, you can also increase your contribution in EPFO ​​and collect the strong interest received on it and deposit a huge fund for yourself. Even experienced people do not know about this. Know here what is the secret way to make a strong fund from EPFO.

According to the rules, if you want to increase your contribution in EPF, then you cannot do so directly. But you can also increase your contribution to EPF through Voluntary Provident Fund (VPF) and avail the same interest (8.25%) on your investment, which you get on EPF.

Unlike EPF, there is no limit for salary deduction in VPF. If the employee wants, he can contribute up to 100% of the basic salary through VPF. That is, if you increase investment through VPF, then you can contribute as much PF as you want above 12%.

The lock-in period of VPF is 5 years. No tax is deducted on withdrawal made after completion of 5 years of service. However, if you withdraw VPF before this, you will have to pay tax on it according to your tax slab.

The interest and withdrawal amount of VPF are tax free. Therefore, it is considered an Exempt-Exempt-Exempt (E-E-E) category investment. In such a situation, tax is saved in 3 ways. Deduction on investment under Section 80C of Income Tax Act, no tax on interest, and no tax on maturity amount.

If you are also interested in investing in VPF, then you have to meet the HR of your company and tell him that you want to increase your investment in PF. With the help of HR, you can also open your VPF account along with EPF. You have to fill a form and give it to HR about how much contribution of your salary you want to increase. After this, the process of your VPF account along with EPF account will be completed. After this process is completed, you can start getting money deducted from your salary in VPF.

The interest and benefits on the amount of VPF are all like EPF, similarly the rules for withdrawal of money are also like EPF. You can withdraw the entire amount of VPF fund only after retirement. After 5 years, when its lock-in period ends, you can withdraw a partial amount from it. For this, a claim can be made online.