According to the rules of EPFO, 12% of the basic salary and dearness allowance (DA) of any employee is deducted and deposited into the PF account every month. The same contribution is also made by the company. At present, 8.25% interest 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 to EPFO ​​collect a strong interest in it, and accumulate a huge fund for yourself. Even the most experienced people do not know about this. Here know what is the secret way to create a strong fund from EPFO.

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

You can contribute up to 100% of your basic salary.

There is no limit on salary deduction in VPF like EPF. If the employee wants, he can contribute up to 100% of his basic salary through VPF. That is, if you increase your investment through VPF, you can contribute as much PF as you want above 12%.

5-year lock-in period

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

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

How to Invest

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 out 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 with EPF account will be completed. After completion of this process, you can start getting money deducted from your salary in VPF.

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

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