GPF News Great news for the staff of the Presidency, you already know how it affects you
New Delhi. Some adjustments were made to the guidelines of the General Prevision Fund (GPF). Now only up to Rs 5 lakh can be invested in any financial year. GPF is a program similar to PPF, however only government employees can contribute.
According to the General Provident Fund (Zentraldienst) Rules of 1960, there has so far been no limit on depositing cash into this fund. In the past, workers could use part of their wages. These policies were amended by regulatory determination dated June 15, 2022. Under the new model guidelines, any amount in a GPF account cannot exceed Rs 5 lakh in any financial year.
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Well, on October 11, 2022, the Department of Pensions and Pensioners Welfare (DoPPW) mentioned the same factor in the office memo. The law states that under the General Provident Fund (Central Service) Rules of 1960, the GPF for a subscriber must not be less than 6% of total income. However, there was no further restriction for this.
What is GPF? GPF is a type of pension fund (PK) account, but it does not apply to all employees. The GPF benefit is available to government employees. To receive this benefit, government employees must pay a certain percentage of their salaries to the GPF. The contribution to the GPF is required for a specific category of public servants. The full amount of the employee's contribution to the GPF during the interval of employment is paid to the employee upon retirement. The state does not contribute to the GPF, only the contribution is made by the employee. The Treasury adjusts the GPF interest rate quarterly.
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Interest rate in GPF Currently, the curiosity gained in GPF is the same as in PPF. The Department of Commerce (DEA) did not change the interest rates for the quarter from October to December 2022. They are currently 7.1 percent. The interest rates of other schemes corresponding to CPF, AISPF, SRPF and AFPPF are an additional 7.1 percent for the quarter.
Keywords: public employees, GPF, investments