EPF account to VPF account

Ask the Community Statutory Compliance
1

Hi,

Can we convert an EPF account to VPF account? what is the process?

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2

Hi,
An EPF account can be easily converted to a VPF account . To do that, the employee needs to notify the employer regarding the opening of a VPF account . The additional amount that an individual would like to invest in a VPF account should also be mentioned to the employer.

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3

Hi @RamyaV

Agree with @Arpana.

Every VPF account will have a primary EPF account, and it’s easy for employees to start a VPF with the help of an employer, and the same can be carried forward too in the next Org.

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4

To start VPF in the organization, do we need to intimate to PF authorities or take approval from them? Please let us know procedure to initiate VPF in the organization.

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5

Hi @Vidyamohan

There is no specific registration form that must be submitted to open a VPF account, but the conversion takes place in the following way from an employee

  • All the documents mentioned as below
  • The employee needs to fill & sign the KYC form and submit the same to the payroll department or HR
  • The department then confirms the authenticity of the documents submitted and converts the account
  • After that, the contribution percentage as decided by you voluntarily will be deducted from your monthly salary

Documents:

  • Company profile
  • Business Registration certificate (Form 9 & Form D)
  • MOF- Company Registration Certificate Forms 24 & 49
  • In case the company is an ‘Sdn Bhd’ (Private Limited Company)- MOA & AOA (Memorandum and Articles of Association)

Post all this in greytHR you can enable a VPF option for employee and during monthly payroll - ECR reports this automatically reflects.

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6

Thanks for the information.
In the current case, employee is already a EPF member and monthly contribution is on. And now employee would like to contribute more than 12% towards PF.
In this scenario also we are supposed submit all mentioned documents to PF department?

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7

Yeah, you need to submit to PF dept, and create a VPF account, so that while filing ECR there’s no error with VPF column.

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8

This case we have done with no documents producing, and simply making the contribution difference.
Thank you

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9

Have faced any issues with that? i heard many are doing the same.

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10

Yeah EPFO will accept them but and reflects in the passbook too.

But when an employee has an issue and to withdraw there are some challenges to the protocol, one of my close friend was having this issue.

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