General Provident Fund firmly referred as GPF is a part of public provident fund which is available for the employees in India. The Indian government has brought multiple schemes under Public Provident Fund which includes Employee Provide Fund and General Provident Fund. These schemes launched to secure the future of an employee after their superannuation period.
Every month a certain amount deducted from the employee salary based on the percentage form their Basic salary. The total amount will get accumulate in the General Provident Fund account which specifies for an employee when they create an account for future finance. The Government of India does decide the interest rate and other withdrawal options for the General Provident Fund scheme.
General Provident Fund Eligibility
Here is the list of employees who eligible to open their account in the General Provident Fund and get their future to secure.
- Every government temporary and permanent employee
- Every private employee who has their employer registered with General Provident Fund
- Every permanent government servant
The General Provident Fund does bring many benefits for an employee with a good amount of savings and here are some benefits which can describe more about it.
- Departed of Pension and Pensioners Welfare under Ministry of Personnel, Public Grievance and Pensions does manages the General Provident Fund
- Any employee who is eligible can become part of the General Provident Fund with their specific percentage form their basic salary not exceeding 100 percent of salary.
- Get an interest rate of 7 percent every year with floating rate of interest decided by government of India
Minimum auto deduction every month subsidized to accumulate
- The subscription to General Provident Fund stopped before retirement period
- Add nominee in GPF to secure their future
- The final amount from GPF sent directly to registered bank account
Type of GPF lump sum amount withdrawn depends on emergency entitled
How to Open General Provident Fund Account
An employee can raise the General Provident Fund account request by visiting the official website of Provident fund. This may also raised by using any Bank which links their account with the General Provident Fund to create an account. The contribution made for the financial year chosen by the employee and there may no contribution from the employer in this scheme.
General Provident Fund Contribution: The General Provident Fund contribution fixed by the subscriber who is the employee and will minimize 6% of basic salary. As well the amount of contribution will not be more than 100 percent of basic salary.
GPF Maturity and Withdrawal
The maturity period of General Provident Fund is retirement age for superannuation period as per the employee working period.
- If a minimum of 10 years completed the subscriber can withdraw a portion of the accumulated amount. It’s also in any emergency case.
- If the employee quits the jobs, then the employee can choose to withdraw the General Provident Fund.
- The amount of GPF may sent to nominee in case of any emergency situation