Home Finance Govt places 5L ceiling on GPF subscription

Govt places 5L ceiling on GPF subscription

Mumbai: In a outstanding transfer, the central authorities has put a ceiling of Rs5 lakh on subscription to Normal Provident Fund (GPF) in a monetary yr.

In accordance with Normal Provident Fund (Central Service) Guidelines, 1960, the quantity of subscription to the GPF in respect of a subscriber, shall not be lower than six per cent of the emoluments and less than complete emoluments of the subscriber. Nonetheless, there was no ceiling on the entire quantity of subscription of a subscriber into his GPF account in a monetary yr, says a govt notification.

Speaking to Bizz Buzz, Michael Dias, member, central board of trustees, EPFO, and secretary of Employers’ Affiliation in New Delhi, says, “Some individuals had been misusing the power of constructing PF contribution which is a authorities safety and therefore the protected mode of funding. Principally wealthy individuals had been availing of the power, whereas it’s meant for poor and center class of the society in order that when one retires from the federal government job, one has respectable quantity in a single’s checking account to reside in a good method.”

As of now, EPFO presents 8.1 per cent curiosity yearly which was larger than a hard and fast deposit in a financial institution.

Guidelines 7, 8 & 10 of the Normal Provident Fund (Central Service) Guidelines, 1960 have been amended vide Notification No GSR 96 dated June 15. As per the notification, the sum of the month-to-month subscription by a subscriber below the GPF throughout a monetary yr along with the quantity of arrear subscriptions deposited in that monetary yr shall not exceed the edge restrict of Rs 5 lakh.

All ministries/departments have been requested that the above amended provisions of the GPF Guidelines, 1960 concerning restrict of subscription below GPF in a monetary yr by a subscriber could also be given extensive publicity to all Authorities servants and, extra notably, to the personnel coping with the GPF issues within the Ministry/Division and connected/subordinate workplaces there-under, for strict implementation.

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