EPF vs VPF: Smart Retirement Planning for Salaried Employees

• EPF (Employee Provident Fund) is a mandatory savings scheme where both employee and employer contribute 12% of basic salary plus dearness allowance.
• VPF (Voluntary Provident Fund) is an extension of EPF, allowing employees to voluntarily contribute more than the mandatory 12% to save extra.
• Both schemes offer long-term savings, financial security post-retirement, and tax benefits under Section 80C of the Income Tax Act.
• Investments in EPF and VPF are secure, government-guaranteed, and not subject to market fluctuations, with tax-free interest.
• EPF is essential for basic retirement security, while VPF is ideal for those with higher income seeking additional stable, long-term savings.