Are you a salaried employee looking to make some extra cash? Well, let us tell you about the Voluntary Provident Fund or VPF! It’s an optional investment you can make on top of your regular Employees Provident Fund or EPF. It’s a sweet deal! This government-backed savings scheme offers low risks and high returns, making it a no-brainer for those looking to grow their money. You’ll be glad when you make your next pf balance check. If you want to learn more about this fantastic opportunity, dive into this article and discover the benefits of VPF for yourself!
What is Voluntary Provident Fund?
The Voluntary Provident Fund, or VPF for short, is a scheme where you, as a salaried employee, can voluntarily contribute towards your provident fund account. This additional contribution is on top of the 12% you already contribute towards your Employees Provident Fund or EPF. The best part is you can contribute up to 100% of your Basic Salary and Dearness Allowance! Plus, you’ll earn interest on your VPF at the same rate as your EPF.
Here’s the catch – your employer isn’t required to contribute to your VPF account, and you’re not obligated to contribute either. However, once you choose to contribute to the VPF, you can only terminate or discontinue it after completing the base tenure of 5 years. Oh, and one more thing – the Government of India determines the interest rate for the Voluntary Retirement Plan at the beginning of each financial year. So there you have it – a simple explanation of the VPF scheme!
How does OPT do for it?
Now, if you want to sign up for VPF immediately, you must ask HR when joining – easy! But let’s say you join your new company and realize you want in on the VPF game – don’t sweat it! You just need to give your HR and accounts department a heads-up before starting a new financial year, and you’re good to go.
What is the UAN Number?
UAN? The EPFO’s unique ID will change how we manage many Member IDs.
UANs encompass all Member IDs from various businesses. The UAN combines all your Member Identity Numbers into a single, easy-to-remember Universal Account Number. With the UAN, you can see all your Identities in one spot. PF balance check with UAN number becomes a possibility.
If you have a UAN, you only need to provide it to your new employer. So, your new employer may connect your new Member Identity Number to your UAN. Simple! The UAN, your one-stop shop for Provident Fund requirements, eliminates the need to manage several Identities.
Checking PF Account Balance
Many options are available for pf balance checks via the Workers’ Provident Fund Organisation of India.
1. PF Balance Check with UAN Number
Every eligible Employees’ Provident Fund member is given a Universal Account Number or UAN for short. And guess what? This UAN remains the same even if you switch jobs! That means you don’t have to worry about a new UAN every time you start a new job.
But that’s not all – once your UAN is generated and activated, you’ll receive a monthly SMS notification that keeps you updated on your contributions and the balance amount in your VPF account. With this notification, you can easily keep track of your funds and ensure that you’re on track to meet your financial goals. So, make sure to activate your UAN and never miss a beat regarding your hard-earned money!
2. PF Balance Check Using a Mobile App
On the EPFO Mobile App, by entering your registered mobile number and UAN, you may get updates on your VPF balance. EPFO’s website offered a link to download the app. Similarly, you may use this app to activate your UAN. Moreover, both pensioners and businesses may utilize the EPFO app.
Among the working class, deposits under the Voluntary Provident Fund program have become quite popular due to their high liquidity. In the case of a sudden and critical financial emergency, the VPF account balance may be accessed after a pf balance check. Nevertheless, there are a couple of caveats to this. A depositor may access their VPF funds for a variety of reasons, including but not limited to:
- For use in paying for the depositor’s and/or their family’s medical bills
- Costs incurred by a family, such as those associated with a child’s further education or wedding,
- To buy or develop a residential property
- Mortgage principal payments
Are you tired of risky investments that make your heart race faster than a rollercoaster? The VPF scheme, managed by the esteemed Government of India, offers a sweet fixed interest accrual, making it a reliable and safe investment option.
Opening a VPF account is a breeze! All you need to do is chat with your HR/Finance team and fill out a simple registration form requesting an additional contribution to your existing EPF account, which will serve as your VPF account. And here’s the best part – when you switch jobs, your account can be easily transferred to your new employer.
How’s that for flexibility? Plus, the VPF account is linked to your Aadhar Card, making transferring your account a piece of cake. Don’t wait any longer – sign up for the VPF scheme today!