GPF New Rule: Important news for government employees. The government has changed the rules of General Provident Fund (GPF).
Under the new rule, now employees will be able to invest only up to Rs 5 lakh in GPF in a financial year. GPF is a scheme like PPF, in which only government employees can contribute. Let’s know the latest update.
Government changed the rules
It is worth mentioning that according to the General Provident Fund (Central Service) Rules, 1960, till now no upper limit was fixed for putting money in this fund. That is, according to the rules till now, employees could put one percent amount of their salary. But after this, on June 15, 2022, through a government notification, it was informed that these rules have been changed. According to this notification, now an amount of more than Rs 5 lakh cannot be added to the GPF account within a financial year.
Government issued notification
After this, on 11 October 2022, the Department of Pension and Pensioners’ Welfare (DoPPW) again issued an office memorandum. This new rule states that according to the General Provident Fund (Central Service) Rules, 1960, the GPF in respect of a subscriber should not be less than 6 per cent of the total emoluments. That is, then the upper limit was not fixed on it, but now this rule has changed.
What is GPF?
Now let’s talk about what is GPF? GPF is also a type of provident fund (PF) account, which is not open to all employees. Actually, only government employees get the benefit of GPF. For this, government employees have to contribute a certain part of their salary to GPF. It is mandatory for government employees to contribute in this.
Thereafter, the total amount accumulated from the contribution made by the employee to GPF during the period of employment is paid at the time of retirement of the employee. Let us tell you that the government does not contribute to GPF, only the employee contributes to it. Not only this, the Finance Ministry changes the interest rate of GPF every quarter.
Know the interest rate on GPF
Let us tell you that at present the interest received on GPF is similar to that of PPF. Significantly, the Department of Economic Affairs (DEA) has not made any change in the interest rates for the October to December quarter of 2022, and currently it is 7.1 percent.
