There is important news for government employees. The government has changed the rules of General Provident Fund (GPF). Under the new rule, now employees will be able to invest only up to Rs 5 lakh in GPF in a financial year. GPF is a scheme like PPF, in which only government employees can contribute. Let’s know the latest updates.

government changed rules

It is noteworthy that as per the General Provident Fund (Central Service) Rules, 1960, till now no upper limit has been fixed for putting money in this fund. That is, according to the rules till now, employees could put a percentage of their salary. But after this, on June 15, 2022, through a government notification, informed that these rules have been changed. According to this notification, no more than Rs 5 lakh can be added to the GPF account within a financial year.

Government issued notification 

After this, on 11 October 2022, the Department of Pension and Pensioners Welfare (DoPPW) has again issued an Office Memorandum. This new rule states that as per the General Provident Fund (Central Service) Rules, 1960, the GPF in respect of a subscriber should not be less than 6 per cent of the total wages. That is, there was no upper limit on it then, but now this rule has changed.

What is GPF?

Now let’s talk about what is GPF? GPF is also a kind of provident fund (PF) account, which is not available to all employees. Actually, only government employees get the benefit of GPF. For this, government employees have to contribute a certain part of their salary to GPF. It is mandatory for government employees to contribute in this. Thereafter, the total amount accumulated out of the contribution made by the employee to GPF during the employment period is paid at the time of retirement of the employee. Let us tell you that the government does not contribute to GPF, only the employee’s contribution is there. Not only this, the Finance Ministry changes the interest rate of GPF every quarter.

Know the interest rate on GPF

Let us tell you that at present the interest earned on GPF is same as that of PPF. Significantly, the Department of Economic Affairs (DEA) has not made any change in the interest rates for the October to December quarter of 2022, and it is currently at 7.1 percent.

The post GPF New Rule: Big news for government employees! Changes in GPF rules, you need to know first appeared on Rightsofemployees.com.

There is big news for government employees. The government has changed the rules of General Provident Fund (GPF). Under the new rule, now employees will be able to invest only up to Rs 5 lakh in GPF in a financial year. Let us tell you that GPF is a scheme like PPF, in which only government employees can contribute.

Government changed rules

It is noteworthy that as per the General Provident Fund (Central Service) Rules, 1960, till now no upper limit has been fixed for putting money in this fund. That is, according to the rules till now, employees could put a percentage of their salary. But after this, on June 15, 2022, through a government notification, informed that these rules have been changed. According to this notification, no more than Rs 5 lakh can be added to the GPF account within a financial year.

Government issued notification

After this, on 11 October 2022, the Department of Pension and Pensioners Welfare (DoPPW) has again issued an Office Memorandum. This new rule states that as per the General Provident Fund (Central Service) Rules, 1960, the GPF in respect of a subscriber should not be less than 6 per cent of the total wages. That is, there was no upper limit on it then, but now this rule has changed.

What is GPF?

Now let’s talk about what is GPF? GPF is also a kind of provident fund (PF) account, which is not available to all employees. Actually, only government employees get the benefit of GPF. For this, government employees have to contribute a certain part of their salary to GPF. It is mandatory for government employees to contribute in this. Thereafter, the total amount accumulated out of the contribution made by the employee to GPF during the employment period is paid at the time of retirement of the employee. Let us tell you that the government does not contribute to GPF, only the employee’s contribution is there. Not only this, the Finance Ministry changes the interest rate of GPF every quarter.

Know the interest rate on GPF

Let us tell you that at present the interest earned on GPF is same as that of PPF. Significantly, the Department of Economic Affairs (DEA) has not made any change in the interest rates for the October to December quarter of 2022, and it is currently at 7.1 percent.

The post Big news for government employees! Changes in GPF rules, you need to know first appeared on Rightsofemployees.com.