{"id":16023,"date":"2024-11-17T05:35:46","date_gmt":"2024-11-17T00:05:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=16023"},"modified":"2025-04-03T21:51:07","modified_gmt":"2025-04-03T16:21:07","slug":"gpf","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/gpf\/","title":{"rendered":"What is General Provident Fund (GPF)?"},"content":{"rendered":"<h2><strong>About General Provident Fund (GPF):<\/strong><\/h2>\n<ul>\n<li>It is a <strong>savings scheme<\/strong> introduced in 1960 that is available <strong>only for government employees in India.\u00a0<\/strong><\/li>\n<li>The primary objective of GPF is to provide a dependable source of income after retirement to government employees.<\/li>\n<li>With a GPF account, all the government employees can <strong>contribute a certain percentage of their salary<\/strong> to the GPF.<\/li>\n<li>Unlike the Employees Provident Fund (EPF), the <strong>contributions<\/strong> toward the GPF are <strong>made only by the employee.<\/strong><\/li>\n<li>The <strong>total amount<\/strong> that is <strong>accumulated<\/strong> throughout the employment term is <strong>paid to the employee at the time of retirement.<\/strong><\/li>\n<li>As per the GPF rules, the <strong>following are eligible<\/strong> to subscribe to a GPF account:\n<ul>\n<li><strong>All temporary government servants<\/strong> who have given their <strong>service for continuously one year.<\/strong><\/li>\n<li><strong>All re-employed pensioners<\/strong> (except those eligible for admission to the contributory provident fund).<\/li>\n<li><strong>All permanent government servants<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Contribution<\/strong>:\n<ul>\n<li>It is a <strong>mandatory scheme<\/strong> for government employees, requiring them to contribute a certain percentage of their salary towards the fund.\u00a0<\/li>\n<li>The contributions are <strong>deducted from the employee&#8217;s monthly salary<\/strong>, and the <strong>amount earns interest<\/strong> at a predetermined rate.<\/li>\n<li>The amount for <strong>GPF subscription<\/strong> is <strong>fixed by the subscriber<\/strong> only. The <strong>minimum contribution is 6%of the salary<\/strong>, while the <strong>maximum<\/strong> can go up to <strong>100%.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Withdrawal:<\/strong>\n<ul>\n<li>Employees can withdraw their savings from the fund <strong>upon retirement or resignation<\/strong> from service.<\/li>\n<li>A GPF is <strong>flexible<\/strong>, <strong>allowing employees to withdraw<\/strong> money from the fund <strong>for various reasons,<\/strong> such as marriage, education, and medical emergencies.<\/li>\n<li>Employees <strong>can also take out loans against<\/strong> their <strong>GPF account,<\/strong> subject to certain conditions.<\/li>\n<li><strong>Employees who transfer<\/strong> to another government department <strong>or leave their job can withdraw their GPF balance or transfer it to<\/strong> their <strong>new employer.<\/strong><\/li>\n<li>The GPF sum will be <strong>paid to their nominee if<\/strong> the employee <strong>passes away.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Interest rates<\/strong> on GPF are <strong>revised periodically<\/strong> according to the government\u2019s issued notifications.\u00a0<\/li>\n<li>The GPF scheme is <strong>administered by the Department of Pension and Pensioners\u2019 Welfare,<\/strong> falling under the Ministry of Personnel, Public Grievances and Pensions.<\/li>\n<li>This scheme offers <strong>several benefits<\/strong> to government employees, including <strong>tax savings,<\/strong> low-risk investments, and guaranteed returns.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1<\/strong>: What is the Employee Pension Scheme (EPS)?<\/h3>\n<p>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\u2019 Provident Funds Scheme(EPF), both the employer and employee contribute 12% each of the employee\u2019s pay towards Employees Provident Fund (EPF). While the employee\u2019s entire share is contributed towards EPF, 8.33% of the employer\u2019s share goes towards the Employees\u2019 Pension Scheme (EPS) and 3.67% goes towards EPF contribution every month.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.livelaw.in\/labour-service\/no-explicit-option-cpf-means-automatic-transition-gpf-scheme-madras-hc-upholds-pension-rights-of-kv-teachers-274915\" target=\"_blank\" rel=\"nofollow noopener\">No Explicit Option For CPF Means Automatic Transition To GPF Scheme: Madras HC Upholds Pension Rights Of KV Teachers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>General Provident Fund is a savings scheme introduced in 1960 that is available only for government employees in India. <\/p>\n","protected":false},"author":5,"featured_media":16024,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-16023","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=16023"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/16024"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=16023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=16023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=16023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}