General Provident Fund and Interest rates

All Temporary Government servants after a continuous service of one year all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government servants are eligible to subscribe to the Fund. A subscriber, at the time of joining the Fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.

A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscription to Provident Fund are stopped three months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscriber’s emoluments and not more than his total emoluments. Rate of interest on GPF accumulations at present is 12% compounded annually. The Rules provide for drawal of advances /withdrawals from the Fund for specific purposes.