GPF: Government employee? Know when to subscribe for General Provident Fund
All temporary government servants after a continuous service of one year, all permanent government servants and all re-employed pensioners (other than those eligible for Contributory Provident Fund) are mandatorily required to subscribe to the GPF
Are you a government employee and want to subscribe for a General Provident Fund (GPF)? Do you know when to subscribe for it? As per the rules, all temporary government servants after a continuous service of one year, all permanent government servants and all re-employed pensioners (other than those eligible for Contributory Provident Fund) are mandatorily required to subscribe to the GPF.
GPF is managed by the Department of Pension and Pensioner’s Welfare which works under the Ministry of Personnel, Public Grievances and Pensions. GPF is a type of Public Provident Fund (PPF) account that is available only for government employees. It allows the government employees to contribute certain percentage of their salary towards the PPF account. The total amount is accumulated throughout the employment term and is paid to the employee after he gets retired.
The interest rates of GPF are revised from time-to-time. The minimum contribution allowed under this is 6 per cent which can go up to 100 per cent. It is different from Employee Provident Fund (EPF) and Public Provident Fund (PPF).
All government employees who have subscribed to the GPF are entitled to get 7.1 per cent rate of interest form the period between 1 April 2020 and 30 June 2020 in the financial year 2020-21 (April-March). This is applicable for accumulations at the credit of all subscribers to the General Provident Fund and other similar funds.
List of funds concerned are:
-- The General Provident Fund (Central Services)
-- The Contributory Fund (India)
-- The All India Services Provident Fund
-- The State Railway Provident Fund
-- The General Provident Fund (Defense Services)
-- The Indian Ordnance Department Provident Fund
-- The Indian Ordnance Factories Workmen's Provident Fund
-- The Indian Naval Dockyard Workmen's Provident Fund
-- The Defense Services Officers provident Fund
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-- The Armed Forces Personnel Provident Fund
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