The employee can contribute more than this 12%,in VPF at any rate he desires. His contribution can even go up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
Apart from the higher interest rates, VPF can give you a tax benefit under section 80C of the Income Tax Act. Your investments in VPF will be considered equivalent to your investment in any other investment instruments under section 80C.
. In VPF, funds may remain locked in till retirement
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