For many working professionals, retirement planning often starts and stops with the Employee Provident Fund (EPF). But what if you want to do more? That’s where the Voluntary Provident Fund (VPF) comes in—offering higher flexibility, better savings potential, and the same safety net as EPF.
Whether you're looking to top up your retirement fund or simply want a tax-efficient way to save more, VPF could be the missing piece in your financial puzzle.
What is the Voluntary Provident Fund (VPF)?
The Voluntary Provident Fund is essentially an extension of your EPF account. While the EPF mandates a 12% contribution from both employee and employer, VPF allows you to voluntarily contribute up to 100% of your basic salary + DA (Dearness Allowance).
This is a low-risk, high-discipline savings option specifically designed for salaried employees who want to strengthen their long-term financial security.
Also Read: What is Provident Fund (PF)?
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Benefits of VPF: Why it’s worth considering
Flexibility to contribute more
You can choose how much you want to contribute—up to 100% of your basic salary + DA.
Loan facility
You can avail loans against your VPF balance during emergencies, based on company policies.
Government-backed security
Just like EPF, VPF is backed by the government, making it a low-risk and stable option.
Disciplined savings
Since the contribution is auto-deducted from your salary, you build a solid savings habit without even trying.
Build a diversified portfolio! Use VPF for retirement savings and consider Bajaj Finance FDs for mid-term goals with flexible tenures (ranging from 12 to 60 months) and assured returns (of up to 7.30% p.a.). Open FD.
Also Read: VPF vs PPF
VPF interest rate 2024-25
For FY 2024–25, the VPF interest rate stands at 8.25% per annum, slightly higher than many traditional savings instruments.
Eligibility: Who can invest in VPF?
Only salaried individuals registered under EPF and receiving salaries through recognised payroll accounts can contribute to VPF.
How to open a VPF Account
Opening a VPF account is straightforward and employer-driven:
Submit a written request to your employer/HR.
Mention the percentage of basic salary + DA you want to contribute.
Your VPF account will be linked with your existing EPF account.
Note: Once opted in, you must continue contributions for a minimum of 5 years.
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Documents required to open a VPF Account
While most of the paperwork is handled by your employer, the following documents may be needed:
Registration certificate of your employer
Business registration (Form 9 & Form D)
MOA & AOA (for private firms)
Form 24 and Form 29
Other documents as per HR/Finance department’s policies