New Delhi, Business Desk. After announcing the interest rate of the General Provident Fund (GPF) of government employees, the central government has now announced the quarterly interest rate of non-government funds. This interest rate is for January to March 2022. This includes those provident funds, which are linked to the retirement, gratuity of the employee.
According to Ashish Vachhani, Joint Secretary in the Government of India, the Finance Ministry has fixed the interest rate for the Special Deposit Scheme, Superannuation and Gratuity Funds of Non-Government Provident. For the quarter from January to March 2022, the interest rate on these funds will be 7.1 percent.
What is General Provident Fund
GPF is exclusively for government employees. Persons employed in the Government of India contribute a minimum of 6% of their salary and are entitled to the amount accumulated at the time of retirement or retirement. The current interest rate on GPF is 7.1%. It is mandatory for all temporary government employees, all permanent government employees and all re-employed pensioners (other than those eligible for Contributory Provident Fund) to subscribe to GPF after one year of regular service.
Who conducts GPF
GPF i.e. General Provident Fund is managed by the Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, Public Grievances and Pensions. The subscriber can nominate one or more persons at the time of GPF subscription to enable them to claim the fund in case of death of the GPF holder. The interest rate on GPF fund is revised by the government from time to time.
who decides the amount
The subscription amount for GPF is decided by the subscriber himself. However, the rate of contribution should not be less than 6% of the total salary of the employee. The maximum contribution is 100% of the employee’s salary.