The Central Government has put a limit on the investment of General Provident Fund. This limit will be for one financial year. Let us tell you, government sector employees invest in GPF. This is a kind of voluntary scheme, which works like PPF. In this, an interest of 7.1 percent is available on investment.
7th Pay Commission: There is a big news for the central employees. The government has made changes in the rules related to the retirement fund of employees. Under the new rules, now the investment limit in General Provident Fund has been fixed.
Fixed limit up to Rs 5 lakh
The Central Government has put a limit on the investment of General Provident Fund. This limit will be for one financial year. Let us tell you, government sector employees invest in GPF. This is a kind of voluntary scheme, which works like PPF. In this, an interest of 7.1 percent is available on investment.
No limit was set yet
According to the Office Memorandum of the Department of Pension and Pensioners’ Welfare, under the GPF (Central Service) Rules 1960, the GPF contribution of the account holder should not be less than 6 per cent of the total salary. Till now no limit was fixed for putting money in GPF. Employees could deposit a percentage of their salary in it. But the government has now imposed a maximum limit of Rs 5 lakh in a financial year.
GPF is for government employees
Explain that like PPF, government employees can deposit a part of their salary in the General Provident Fund (GPF). This money is returned to the account holder at the time of retirement. Interest is earned on the money deposited in GPF. It is managed under the Department of Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions.
General Provident Fund Account is only for government employees. It is a type of retirement fund scheme. Government employees can contribute up to 15 percent of their salary to the GPF account.
