What is General Provident Fund (GPF)?

General Provident Fund is a savings scheme introduced in 1960 that is available only for government employees in India.

What is General Provident Fund (GPF)?

About General Provident Fund (GPF):

  • It is a savings scheme introduced in 1960 that is available only for government employees in India. 
  • The primary objective of GPF is to provide a dependable source of income after retirement to government employees.
  • With a GPF account, all the government employees can contribute a certain percentage of their salary to the GPF.
  • Unlike the Employees Provident Fund (EPF), the contributions toward the GPF are made only by the employee.
  • The total amount that is accumulated throughout the employment term is paid to the employee at the time of retirement.
  • As per the GPF rules, the following are eligible to subscribe to a GPF account:
    • All temporary government servants who have given their service for continuously one year.
    • All re-employed pensioners (except those eligible for admission to the contributory provident fund).
    • All permanent government servants.
  • Contribution:
    • It is a mandatory scheme for government employees, requiring them to contribute a certain percentage of their salary towards the fund. 
    • The contributions are deducted from the employee’s monthly salary, and the amount earns interest at a predetermined rate.
    • The amount for GPF subscription is fixed by the subscriber only. The minimum contribution is 6%of the salary, while the maximum can go up to 100%.
  • Withdrawal:
    • Employees can withdraw their savings from the fund upon retirement or resignation from service.
    • A GPF is flexible, allowing employees to withdraw money from the fund for various reasons, such as marriage, education, and medical emergencies.
    • Employees can also take out loans against their GPF account, subject to certain conditions.
    • Employees who transfer to another government department or leave their job can withdraw their GPF balance or transfer it to their new employer.
    • The GPF sum will be paid to their nominee if the employee passes away.
  • Interest rates on GPF are revised periodically according to the government’s issued notifications. 
  • The GPF scheme is administered by the Department of Pension and Pensioners’ Welfare, falling under the Ministry of Personnel, Public Grievances and Pensions.
  • This scheme offers several benefits to government employees, including tax savings, low-risk investments, and guaranteed returns.

Q1: What is the Employee Pension Scheme (EPS)?

The scheme makes provisions for employees working in the organized sector for a pension after their retirement at the age of 58 years. The benefits of the scheme can be availed only if the employee has provided a service for at least 10 years. Under Employees’ Provident Funds Scheme(EPF), both the employer and employee contribute 12% each of the employee’s pay towards Employees Provident Fund (EPF). While the employee’s entire share is contributed towards EPF, 8.33% of the employer’s share goes towards the Employees’ Pension Scheme (EPS) and 3.67% goes towards EPF contribution every month.

Source: No Explicit Option For CPF Means Automatic Transition To GPF Scheme: Madras HC Upholds Pension Rights Of KV Teachers

Latest UPSC Exam 2025 Updates

Last updated on July, 2025

UPSC Notification 2025 was released on 22nd January 2025.

UPSC Prelims Result 2025 is out now for the CSE held on 25 May 2025.

UPSC Prelims Question Paper 2025 and Unofficial Prelims Answer Key 2025  are available now.

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UPSC Mains 2025 will be conducted on 22nd August 2025.

UPSC Prelims 2026 will be conducted on 24th May, 2026 & UPSC Mains 2026 will be conducted on 21st August 2026.

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