VPF Calculator

You can contribute up to 100% of your basic salary plus dearness allowance to VPF. VPF contributions up to 1,50,000 qualify for Section 80C deduction.

Yes, you can increase, decrease, or stop your VPF contribution at the beginning of each financial year.

VPF is linked to your EPF account and earns the same interest rate as EPF. PPF is a separate account independent of employment. Both offer tax-free returns and 80C benefits.

Yes, VPF withdrawals follow the same rules as EPF. You can partially withdraw for specific purposes such as housing, education, marriage, or medical emergencies after a certain lock-in period. Full withdrawal is permitted on retirement, resignation after 2 months of unemployment, or leaving India permanently. The tax treatment of VPF withdrawals is identical to EPF — tax-free if you complete 5 years of continuous service.

When you change jobs, your entire EPF balance including the VPF component is transferred to your new EPF account through the online transfer claim process on the EPFO portal. If your new employer does not offer VPF, you cannot make additional VPF contributions through them, but your existing VPF balance continues to earn interest. You can start VPF contributions again if you join an employer who offers the facility.

Yes, interest earned on VPF contributions is tax-free, just like interest on regular EPF contributions, provided the employee has completed 5 years of continuous service. The interest rate for VPF is the same as the EPF rate declared annually by the EPFO. As per Budget 2021, interest on employee contributions exceeding ₹2.5 lakh per year (combined EPF and VPF) becomes taxable in the hands of the employee.

Yes, you can stop or reduce your VPF contribution at the beginning of any financial year. However, once you choose a VPF contribution percentage for a financial year, most employers do not allow mid-year changes. You must inform your employer's HR or finance department in writing before the start of the new financial year if you wish to modify your VPF contribution amount.

No, VPF contributions are entirely voluntary and made only by the employee. Your employer's EPF contribution remains unchanged at 12% of your basic salary plus dearness allowance (3.67% to EPF and 8.33% to EPS). The employer's contribution is not affected by your VPF election. VPF is purely an additional voluntary deduction from your salary directed to your EPF account.

The VPF interest rate is identical to the EPF rate declared annually by the EPFO, which has historically ranged between 8% and 8.75% in recent years (8.25% for FY 2023-24). PPF, in comparison, offers interest at around 7.1% (FY 2023-24). Both VPF and PPF offer tax-free returns and Section 80C benefits, but VPF typically offers a slightly higher rate and is deducted directly from salary, making it more convenient.

Yes, the VPF balance is part of your total EPF corpus and can be transferred to your new employer's EPF account when you change jobs. The transfer is initiated through the EPFO's online claim portal (employer need not be logged in). Both old and new Universal Account Numbers (UAN) are linked through the process. VPF transfers are tax-free and do not trigger any tax liability if done before withdrawal.