Final Up to date on Jun 4, 2025 by Aishika Banerjee
Retirement is a vital part of 1’s life. It needs to be prioritised in your monetary plan proper from a younger age. That can assist you along with your retirement financial savings objectives, the federal government of India has launched Provident Funds (PF). The Common Provident Fund (GPF) is among the PF accounts completely designed for presidency workers. The Division of Pension and Pensioner’s Welfare takes care of it. On this article, allow us to study extra about GPF and the foundations.
What’s GPF?
Within the Common Provident Fund, the federal government workers contribute a small a part of their salaries to the GPF account. They will get their accrued funds on the time of retirement (maturity date).
It’s obligatory for the GPF subscribed workers to contribute their month-to-month share usually except there’s a case of suspension. Nevertheless, workers 3 months near retirement can cease contributing.
GPF Guidelines
The federal government has categorised the Common Provident Fund guidelines into a number of classes to make the processes associated to GPF easy for the contributors.
1. Eligibility Guidelines
The GPF eligibility guidelines are as follows.
- All non permanent authorities workers who’ve labored for a yr or extra are eligible.
- All of the re-employed pensioners (besides these eligible for admission to the Contributory Provident Fund) are eligible.
- All everlasting workers are eligible.
2. GPF Deposit guidelines
These guidelines are concerning the deposit quantity, frequency and maturity date:
- Most quantity: The utmost contribution to the account mustn’t exceed your whole revenue.
- Minimal quantity: The minimal contribution shouldn’t be lower than 6% of your whole revenue.
- Frequency: You need to contribute to the account month-to-month except the subscription is suspended.
- Maturity date: The deposits mature solely at your retirement or superannuation.
3. GPF Nomination guidelines
On the time of subscription to the PF account, you may add a nominee to the account who must be a member of the family. You can even add a couple of nominee and declare the share of every nominee.
4. Withdrawal guidelines
The non-refundable GPF withdrawal guidelines are about when and the way a lot a subscriber can withdraw the funds. The essential criterion for the non-refundable withdrawal is that it’s best to have accomplished at the least 15 yrs of service or inside 10 yrs of the date of retirement or superannuation (whichever is earlier). The GPF withdrawal guidelines are as follows.
- You possibly can withdraw 75% of the excellent PF account stability to fund schooling or any occasion like marriage (yours or dependent relations).
- You possibly can withdraw 90% of the excellent quantity within the case of any medical emergency for your self or a dependent member of the family. In 7 days you may obtain the quantity you need to withdraw.
- You possibly can withdraw 75% of the account stability to buy a brand new home or land, renovate/restore it or repay an present house mortgage.
- You possibly can withdraw 75% of the stability or 3/4th of the car worth (whichever is decrease) to buy a car, repay a automotive mortgage, or restore the automotive.
- You possibly can withdraw 90% of the stability earlier than 2 yrs of retirement with out offering any purpose.
- You possibly can withdraw funds to buy giant house home equipment like air conditioners or washing machines. Nevertheless, the funds should be used solely to buy the merchandise you state on the GPF closing withdrawal kind.
- The nominee can withdraw the excellent quantity within the occasion of the subscriber’s demise. They’re additionally entitled to a further quantity of a median of three yrs PF stability previous the occasion. This extra quantity shouldn’t be greater than Rs. 60,000. Additionally, as per the GPF half closing withdrawal and GPF partial withdrawal guidelines, the nominee shall be eligible for the extra fund provided that the subscriber has been in service for at least 5 yrs.
- On the time of retirement or superannuation, the subscriber is allowed to withdraw the whole quantity.
5. GPF Advance guidelines
The GPF contributors can get an advance of three months’ pay or half the account stability (whichever is decrease). The GPF non permanent advance guidelines are as follows:
- You will get an advance to fund the upper schooling of a dependent member of the family or any occasion like a wedding.
- You will get a GPF advance for medical bills within the case of any medical emergency for your self or a dependent member of the family.
- You will get a GPF advance for home development or to buy giant house home equipment like TV, air conditioners or washing machines. Be aware that funds should be used just for the rationale said.
- You will get an advance to satisfy the prices of authorized proceedings placed on or in opposition to your self or a dependent member of the family.
The advance supplied needs to be paid again in equal instalments for as much as 12-24 months. The restoration tenure may be prolonged to 36 months provided that the advance cost is greater than 3 months’ pay.
6. Rate of interest guidelines
GPF rates of interest are revised periodically as per authorities laws. It was 7.1% per 03 June 2025.
7. Taxation guidelines
The month-to-month contributions made in keeping with GPF contribution limits, rate of interest accrued, and the returns supplied from the GPF account are eligible for the tax-exemption class and GPF tax advantages below Part 80C of the Earnings Tax Act.
Steadily Requested Questions About GPF Guidelines
1. What’s GPF full kind?
GPF stands for Common Provident Fund. It’s a provident fund facility supplied to the federal government workers of India.
2. Methods to verify the GPF stability?
You possibly can verify your GPF account stability by visiting the e-GPF web site and logging in to your account with particulars like GPF quantity, worker pin and collection code.
3. What are GPF mortgage guidelines?
GPF mortgage is often known as GPF advance for schooling or marriage, the place the contributors can get a brief GPF advance for marriage or schooling or medical bills from their GPF account to fund important purchases.
4. What are GPF subscription guidelines?
The GPF subscription rule is that each one authorities workers needs to be contributing at the least 6% of their month-to-month revenue to the GPF account.
5. The place can we get the GPF withdrawal kind?
You possibly can obtain the GPF withdrawal kind from https://pensionersportal.gov.in. The shape must be crammed out appropriately and submitted to the respective authorities for withdrawal functions.
