NEW DELHI, June 22 -- With the Employees' Provident Fund Organisation (EPFO) holding the EPF interest rate steady at 8.25% for FY26, the retirement scheme remains one of the highest-yielding fixed-income options for salaried workers.

Employees typically contribute 12% of basic salary to the fund, but those seeking to build a larger guaranteed retirement corpus can route additional savings through the Voluntary Provident Fund (VPF), taking contributions up to 100% of basic pay and dearness allowance.

The appeal, however, comes with a tax catch. Interest earned on an employee's contribution above Rs.2.5 lakh in a financial year is taxed at the individual's slab rate. That raises a simple question: does it still make sense to put extra mon...