GPF (General Provident Fund) Rules, 1960 |
Introduction and Applicability |
General Provident Fund (GPF) scheme is available to all employees of the Central and State governments, including those working in autonomous organizations and universities who have been appointed on or before 31.12.2003 (Employees who joined service after that date are covered by the National Pension System (NPS). The scheme allows employees to save a portion of their salary every month, and the government also contributes to the employee's GPF account. A government employee needs to contribute a minimum of 6% of emoluments and not more than his total emoluments (Basic Pay, does not include Dearness Allowance). Subscription may be increased twice and/or reduces once at any time during the year. The contributions made to the GPF account earn interest, which is compounded annually. The interest rate is determined by the government and is subject to change from time to time. The interest earned on the GPF account is tax-free, and the contributions made towards the GPF account are tax-deductible under Section 80C of the Income Tax Act. In other words: The General Provident Fund (GPF) is a retirement benefit scheme for the government employees of India. It is a savings-cum-pension scheme, where a certain percentage of the employee's salary is deducted every month and deposited into their GPF account. The interest rate on GPF is determined by the government and is typically higher than other savings schemes. The GPF account earns interest at a rate determined by the government from time to time. The interest is compounded annually and credited to the employee's account at the end of each financial year. The employee can withdraw from their GPF account for certain purposes such as education, marriage, medical treatment, purchase of a house, and so on. However, there are certain restrictions on the amount that can be withdrawn and the frequency of withdrawal. |
GPF Advance |
Employees can take an advance from their GPF account for specific purposes, such as education, illness, housing, betrothal, marriage, funerals and purchase of a vehicle. Amount of advance payable: i) 12 months pay or three-fourth of the amount at credit, whichever is less. ii) The amount of advance will be recovered in a maximum of 60 installments. A GPF advance is a temporary loan that must be repaid with interest, a withdrawal is a permanent withdrawal of funds from the account and can only be made under specific circumstances, such as retirement or resignation. Advances are sanctioned through the Head of Office. Maximum time limit of fifteen days is being prescribed for sanction and payment of an advance from the Fund. In emergency cases, time limit is restricted to seven days. No documentary proof is required, only a simple declaration explaining the reasons in advance would be sufficient. |
GPF Withdrawal |
Withdrawal from the GPF account is allowed under certain conditions, such as: 1. Retirement: The account holder can withdraw the entire balance on retirement. 2. Resignation: If the account holder resigns from the job, they can withdraw the entire balance after two months from the date of resignation. 3. Superannuation: Employees who have completed 33 years of service or attained the age of 60 years can withdraw the entire balance. 4. Illness: In case of illness of self or family members or dependents, the account holder can withdraw up to 90% of the balance. 5. Education: Up to 12 months pay or three-fourth of the amount standing in credit, whichever is less. 6. Housing: (New House construction, house loan, reconstruction) The account holder can withdraw up to 90% of the balance for the construction/purchase of a house or flat. 7. Obligatory expenses : i.e. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants, amount up to 12 months pay or three-fourth of the amount standing in credit, whichever is less is admissible for withdrawal |
Some Important Points to remember |
| 1. GPF Rules applicable to the Central Govt. employees on or before 31.12.2003. 2. Minimum 6% of Emoluments (Only Basic, does not includes DA) Whole or part of the bonus amount may be deposited in the Provident Fund. 3. Maximum 100% of emoluments can be contributed towards GPF. 4. Should be fixed at not less than 6% of his/her emoluments on the 31st march of the preceding year and in case of new subscribers to the emoluments on the date of joining the fund. 5. Subscription may be increased twice and/or reduced once at any time during the year. 6. Subscription to the fund shall be stopped during suspension. 7. Subscription to the Fund shall be stopped during Suspension and the option of the GS during leave on HPL, Leave without Pay and Dies Non. Proportionate subscription to be recovered for the period of duty and any leave than HPL/EOL. 8. Subscription recovery to be stopped 3 months before retirement on Superannuation. 9.Advance Permissible : 12 months of pay or three-fourth of the amount at credit, whichever is less. The amount of advance will be recoverable in a maximum of 60 installments. |
CPF ( Contributory Provident Fund) |
Introduction, Objective & Applicability |
Contributory Provident Fund (CPF) is a retirement savings scheme available to employees in India. It is a defined contribution plan in which both the employee and the employer make contributions to the fund. The contributions are made on a monthly basis, and the accumulated amount is paid out to the employee at the time of retirement or resignation. Under the CPF scheme, the employer contributes 10% of the employee's basic salary and dearness allowance, while the employee contributes an equal amount. The contributions are credited to the employee's account on a monthly basis, and interest is added to the amount at a fixed rate. |
CPF Withdrawal |
The Contributory Provident Fund (CPF) is a retirement savings scheme available to employees in India. The scheme is regulated by the Employees' Provident Fund Organisation (EPFO), which is a statutory body under the Ministry of Labour and Employment, Government of India. Here are some of the common scenarios in which CPF withdrawal is allowed: 1. Retirement: If you have reached the age of 58 years, you can withdraw your entire CPF balance. 2. Resignation or termination: If you resign from your job or are terminated from your employment, you can withdraw your CPF balance after a waiting period of two months. 3. Medical reasons: If you suffer from a serious illness or are physically disabled, you can withdraw your CPF balance before the age of 58 years. 4. Education: If you are planning to pursue higher education for yourself or your family members, you can withdraw a portion of your CPF balance for this purpose. 5. Housing: If you are planning to purchase or construct a house, you can withdraw a portion of your CPF balance for this purpose. To initiate the CPF withdrawal process, you need to fill up a withdrawal form and submit it to the EPFO. The EPFO will process your request and credit the amount to your bank account. |
Some important Points to remember |
1. Every non-pensionable Government servant is to compulsorily subscribe to the fund. 2. Any sum as fixed by the subscriber is subject to a minimum of 10 percent of emoluments and not more than his emoluments. 3. Government contribution is also at 10 percent of subscriber’s emoluments. |
For any query or inquiry please write to us at : info2academy99@gmail.com |
