Understanding VPF for Small Companies: How Does It Work and Can Employers Contribute?

Clarifications Needed on VPF and EPF Procedures

I need the following clarifications (our company has fewer than 20 employees): What is the procedure for VPF? How much do employees contribute to VPF? Can the employer contribute to VPF, and if so, how much? Is the VPF procedure the same as PPF?

Actually, our office is considering EPF, but our number of employees is less than 20. My friend suggested that it would be a good idea to apply for VPF if not EPF. I am awaiting your reply regarding registering for VPF.

Thank you.

Procedure for Voluntary Provident Fund (VPF) Application

Make a voluntary application to the RPFO along with a 12% contribution payment of the present employees.

Attachments Required

1. No Objection Certificate signed by the majority of the employees
2. Articles & Memorandum of Association of the company
3. Document illustrating and explaining the nature of the business of the company

Upon submission of the application to the RPFO, the application will go to the Head Office located in New Delhi for approval because the regional RPFO does not have the power to allot a code in a voluntary coverage application. Once approval is obtained from the Head Office, the regional office allots the code. The entire procedure takes nothing less than two months.