What is vbf in salary?
How much does a Operator VBF make? The national average salary for a Operator VBF is $35,569 in United States. Average salary for Merck Operator VBF in Raleigh: $ 57949. But yes, if you declared it in your company to save tax, it will be mentioned on FORM 16 (Salary and tax calculation form issued by your employer). Average salaries for Operator VBF: [salary].
VPF or Voluntary Provident Fund is a type of regular provident fund scheme under which a depositor can maintain an explicit portion of his/her provident fund voluntarily. As replicated by the name of this scheme, any employee who wishes to avail the VPF scheme is entitled to contribute a portion of his earning /salary towards the conventional Provident fund.
This contribution should ideally be over and above the PF limit of 12%; however, he/she is not bound to contribute any specific amount towards the VPF account. The employee can contribute the full amount of their basic salary as well as DA. The interest offered on VPF is as per the EPF scheme and the interest earned is credited to the employee’s EPF account. Since, the VPF account is linked to the employee’s EPF account only, having an EPF account is mandatory in order to invest in VPF.
VPF account is not only a seamless & safe investment option but also enables the salaried class with savings for the long term which can be liquidated in case of any financial exigency without any loss to the capital. Apart from its other unmatched benefits, the supplementary appeal is the high interest rate offered on it.
Also Read: EPF
Under VPF, an employee can contribute beyond the normal mandatory deduction of 12% of his/her salary. This 12% stands for the amount which their employer deducts every month from basic salary toward the Employees’ Provident Fund. VPF scheme is available only for resident salaried individuals without any defined obligation.
Read More: EPF Interest Rate
A VPF account is basically the subset of the mandatory Employee Provident Fund account for the salaried employees and can easily be enrolled by requesting the concerned organization finance or HR team. The VPF application form captures basic details of the employees with the instruction to debit a particular percentage of the amount from the basic salary and dearness allowance per month as VPF contribution. Additionally, it is mandatory for the Employer to get registered with the EPFO office in order to provide the EPF & VPF facilities to its concerned employees.
For the purpose of registration, the employer needs to submit the below-mentioned documents for registration-
The investments made under the Voluntary Provident Fund have gained huge popularity amongst the service class. The accumulated money in the VPF account can be withdrawn in the event of any unexpected and urgent financial emergency, this is subject to a few conditions.
A depositor can withdraw their VPF amount for a various reasons, such as-
An employee must furnish the following documents while applying for VPF withdrawal-
These documents must be submitted and later on attested by the concerned employer.
Even though all the three types of investment options offered by the government are meant to deal with the social and financial security of various classes of people, however, there are various differences between them-
Ques: Who can open a VPF account? Ans: Any employee who has an EPF account can apply for opening a Voluntary Provident Fund account.
Ques: How can I open a VPF account? Ans: In order to open a VPF account, you must request the concerned HR person in your workplace and ask him/her for an application. You must submit the application along with the required documents to the HR.
Ques: What will happen to my VPF account after I change my job? Ans: Since your Voluntary Provident Fund account is linked to your Aadhaar, it will be easily transferred to your new employer as you switch jobs.
