GPF, short for General Provident Fund, is a type of PPF (Public Provident Fund) account that is available only for government employees in India. With a GPF account, all the government employees can contribute a certain percentage of their salary to the General Provident Fund. The total amount that is accumulated throughout the employment term is paid to the employee at the time of retirement.

Interest rates on GPF are revised periodically according to the government’s issued notifications. As per the GPF rules, the following are eligible to subscribe to 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

Key Features of GPF

  • GPF is managed by the Department of Pension and Pensioner’s Welfare under the Ministry of Personnel, Public Grievances and Pensions.
  • A government employee can become a GPF member by contributing a certain percentage of his/her salary to the same, according to pensioners’ official portal, i.e.
  • GPF provides an interest rate of 8% at present
  •  A monthly subscription is required to GPF except during the period when the subscriber is under suspension.
  • According to, subscriptions to the general provident fund are stopped three months prior to the date of superannuation
  • Immediate payment of the final balance is done upon the retirement of a subscriber.
  • A subscriber is required to make a nomination in the name of a family member, at the time of joining the fund, in the prescribed form. The nomination grants the right to one or more persons to receive the accumulated credit in the fund in the event of the subscriber’s demise.
  • There is no need to submit an application by the subscriber for the final payment from the fund.
  • As per the GPF rules, the person is entitled to receive the amount standing to the credit of the subscriber on the death of a subscriber, shall be paid an additional amount equal to the average balance in the account during the three years immediately preceding the death of the subscriber, however, it is subject to certain conditions provided in the relevant rule.
  • The additional amount that is payable under that rule should not exceed Rs 60,000. Furthermore, to avail of this benefit, the subscriber should be in service for at least 5 years at the time of his/her death.
  • As per the Interim Budget 2019-20 proposals, people having a taxable income of Rs 6.5 lakh per annum can avail “tax rebate” provided they invest Rs 1.5 lakh in specified investments such as Public Provident Fund (PPF), General Provident Fund (GPF) and insurances. The proposed rebate on tax liability came into effect from April 1, 2019.

General Provident Fund – Eligibility Criteria

  • Anyone who fulfills the below-mentioned criteria can subscribe to GPF Account:
  • A government employee who is a resident of India
  • General Provident Fund is compulsory for government employees that come under certain salary slab
  • Private sector company employees are not eligible for the General Provident Fund
  • To become a member of the General Provident Fund, a government employee only needs to invest a certain percentage of their salary

GPF Contribution Amount

The amount for GPF subscription is fixed by the subscriber-only. However, the contribution rate should not be less than 6% of the total salary of the employee. The maximum contribution can be 100% of the employee’s salary.

GPF Advances

  • GPF has certain provisions for refundable advances from the accumulated fund under various predefined grounds which include education, medical emergency, marriage, and for getting a house or consumer durables.
  • The GPF subscriber is eligible to get either up to 12 months of pay or three-fourths of the GPF balance, whichever is less. However, the sanctioning authority can allow a 90% withdrawal of the balance under some special circumstances.
  • The sanctioning authority must sanction and credit the qualified advance within fifteen days from the date request. There is no need for any sort of documentary proof to be furnished by the subscriber in order to raise a claim for GPF advance. The amount borrowed has to be repaid. It can be repaid in a maximum of 60 months’ installments.
  • It should be noted no interest is charged on the GPF advance and the account holder can make multiple claims for GPF advances throughout his career. Even if you are already repaying an existing GPF advance, you can make a request for a fresh advance.
  • However, the condition here is, if the advance is granted before the complete repayment of your existing advance, the outstanding amount of the same will be added to the new advance and installments for recovery refixed with reference to the consolidated amount.

Maturity and Withdrawal Process of GPF

  • The maturity of the GPF account happens at the time of retirement/superannuation of the respective government employee.
  • An employee can withdraw his accumulated GPF funds on various grounds but the only mandatory condition is completing 10 years of service or within 10 years before the date of retirement on superannuation, whichever is earlier. This applies if the employee has not left the government service.
  • In case an employee quits the job at any stage, he becomes eligible to withdraw his GPF balance irrespective of his service tenure.
  • Finally, on the event of the subscriber’s demise, the GPF amount will be paid to his/her nominee

On a closing note

Fulfilling financial goals like your child’s education, marriage, house, or even a medical emergency is a part of everyone’s life. So, if you are a government employee and want to save a substantial amount of savings for your golden years, GPF Account is a great tool that can help you achieve the same.

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