A portion of every salaried person's salary is placed into their Employees' Provident Fund (PF) each month. However, it is possible to quadruple this PF amount by making little effort. 

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PF is a very popular way to accumulate savings for long-term investment goals. An employee contributes 12 per cent of his/her basic salary and dearness allowance (DA) towards the PF balance. For example: If an individual's basic salary and DA is Rs 18,000 then their PF contribution would be Rs 18000 x 12/100= Rs 2,160. 

However, many companies provide their employees with a flexible tool to help them alter their salary structure if they are contributing the bare minimum amount towards the PF balance. Using this tool, employees can request that their employer increase their PF contribution. 

This may result in a little reduced in-hand income, but increased PF payments can help one save more money while simultaneously reducing income taxes. Furthermore, after each evaluation cycle, your pay in hand will increase, which will help with this problem.

How to increase your EPF contribution by more than 12%? 

If you want to increase your EPF contribution for higher interest rates, you can do that through VPF (Voluntary Provident Fund). However, it is not possible to do directly. 

VPF is deducted from the employees' salary only after their approval. Through this, an employee can increase the EPF contribution as much as he wants without any limitation, and the benefits of VPF are the same as EPF. 

VPF provides a return of 8.10 per cent per annum. By investing in this scheme, people get tax benefits under Section 80C of the Income Tax Act; returns on maturity, too, are not taxed. 

However, if a person invests more than Rs 2.5 lakh per annum in PF and VPF together, the returns on the EPF become taxable. 

How to invest in VPF? 

To invest in VPF, you need to inform your HR and through their help, you can open your VPF account along with an EPF account. For that, you need to fill up a form with the details like monthly deductions, percentages, etc. The lock-in period for VPF is five years. 

Tax redemption and transfer of funds 

The VPF rules are the same as EPF. If you change your company, the VPF amount can be transferred to your new company and no tax is levied on this. This also comes under 80C and one can avail of tax benefits of upto Rs 1.50 lakh in a year.