ATTENTION Central government employees! Center Makes BIG Change to General Provident Fund Rule

GPF Rule Change 2022: The General Provisions Fund is a savings fund for civil servants. All government employees of the Pensions & Retired Service benefit from this scheme. Just like the Employee Provident Fund, government employees with a GPF account can contribute a certain percentage of their salary to the scheme. The deposits in the GPF yield a stable interest rate, as determined by the central government. For the quarter from October to December 2022, the central government has set the GPF rate at 7.1 percent.

Change in the general rule of the Provident Fund:
In order to remove ambiguities and make the fund more transparent, the Pensions and Retirement Welfare Department of the Ministry of Personnel, PG and Pensions has made an amendment to the deposit rule of the General Provisions Fund.

“In accordance with the General Provident Fund (Central Service) Rules, 1960, the amount of the subscription to the GPF in respect of a subscriber shall be not less than 6% of the emoluments and not more than the subscriber’s total emoluments, the Department said in an Oct. 11 notice. The department underlined that there was no cap on a subscriber’s total subscriptions to their GPF account in a fiscal year.

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The department further said that the government has decided to set a maximum annual cap of Rs 5 lakh on the GPF contributions.

“….the sum of a subscriber’s monthly subscription under the GPF during a financial year, along with the amount of subscription arrears deposited in that financial year, must not exceed the threshold (currently Rs five lakh)…” according to the notification.

GPF upper limit

She urged all ministries/departments to inform all concerned ministries and departments in order to create awareness about the maximum ceiling.

It should be noted that GPF is managed by the Pension and Retirement Welfare Department. An employee’s contribution to the general provision is stopped three months before the date of his/her retirement and upon the employee’s retirement, the final balance is immediately paid out.

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