Topic In This Article
WHAT IS GPF (General Provident Fund):-
GPF or General Provident Fund account is only for government employees. A government servant can become a member by giving a certain part of his salary as a contribution. The amount deposited in this fund comes to the government employee during retirement. Deduction of GPF shall be made only from the salary of the employee appointed prior to 01.01.2004.
ELIGIBILITY OF GPF :-
Government employees who are citizens of India are eligible for General Provident Fund Account. This is mandatory for some salaried class employees. Private sector employees are not eligible for this account.
HOW DO WORK GPF :-
The General Provident Fund is a savings medium for centre and state government employees. In this account, the account holder deposits a certain part of his salary for a fixed time period.
At the time of retirement, the fund’s amount is paid to the future of employees. The account holder can make a nominee to anyone when opening the account. If something goes wrong with the account holder, then the nominee receives that amount and profit.
GPF has a GPF Advance feature, which is an interest-free loan. This money borrowed can be repaid in regular monthly installments. No interest amount is paid on the GPF Advance Cash. How often can GPF Advance be taken as needed.
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GPF Subscription Slabs :
Every Account holder will be required to compulsorily deposit every month. The following amounts out of his salary bill drawn through treasury. As per the Rates prescribed by the Rajasthan government from time to time.
Rates prescribed by the Rajasthan Government from 01 March, 2018.
General Provident Fund (Deduction Slab) – pay scale 2017
Note – GPF deduction will not be deducted from the salary of the appointed employees after January 1, 2004 or later.
GPF Distribution :
GPF defined benefits and defined contributions have been designed by adding both concepts. Under this, government employees will make mandatory contribution of 3% of their monthly salary and send it to the fund as employee contribution. (maximum contribution of 15%)
Money will be deposited in each member’s personal GPF account and will be invested according to the rules. At the end of the membership, a member will get the money two parts.
The first part is pension or gratuity under the old defined benefit plan from the government. The second part is reimbursement of retirement savings from GPF.
For those who retire from government service without the right to receive pension or gratuity under the old scheme, they will receive only on the reimbursement of their personal savings, including other profits from GPF.