The full form of GPF is General Provident Fund. A provident fund programme known as GPF is used to describe government personnel. In this approach, government employees contribute to the account a portion of their salaries. When the employee retires or becomes eligible for retirement benefits, the accrued balance is paid to them.
Eligibility Criteria of GPF
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- The government employee must be a citizen of India.
- For employees of the government earning that particular wage level, this account is required.
- Employees of private companies are not eligible for this programme.
How does GPF Operate
- Government workers can use it as a tool to save money. The employee must make annual contributions to the GPF account, totalling a certain percentage of their pay. The employee will get the remaining balance in their GPF account by retirement or superannuation.
- The GPF account holder must also submit a candidate for their consideration. The nominee will be the one who benefits if something happens to the account holder.
- Additionally, the account has a function called GPF advance. It is an instance of a GPF interest-free loan.