GPF Rules & Regulations

General Provident Fund (Central Services) Rules, 1960 — the definitive guide covering eligibility, subscription, interest rate, advances, withdrawals, nominations, final payment and all latest amendments for Central Government employees.

7.1%Current Interest Rate
6%–100%Subscription Range
1960Rules Enacted
Pre-2004Eligible Recruits
Rule 12 & 15Advance & Withdrawal

What is GPF? Overview & Key Facts

General Provident Fund – India’s oldest and most secure Government savings scheme

🏛️GPF – General Provident Fund Overview

The General Provident Fund (Central Services) Rules, 1960 govern the GPF scheme for Central Government employees. GPF is a compulsory savings instrument where eligible government employees contribute a fixed percentage of their salary every month, which accumulates with government-declared interest and is paid as a lump sum on retirement, resignation or death.

GPF is available exclusively for employees recruited before January 1, 2004. Those recruited on or after that date are covered under the National Pension System (NPS). GPF is administered by the Pay & Accounts Office (PAO) under the Ministry of Finance, Controller General of Accounts (CGA).

Interest Rate 2026

7.1% p.a.

Compounded annually. Consistent since FY 2020–21. Credited on 31st March each year.

Min Subscription

6% of Pay

Minimum 6% of emoluments (basic pay + DA). No maximum except total emoluments.

Subscription Stop

3 Months Prior

Subscription is stopped 3 months before the date of superannuation (retirement).

Advance Eligibility

Any Time

Temporary advance can be drawn at any stage of service after subscription starts.

Withdrawal Eligibility

15 Yrs Service

Or within 10 years before retirement — whichever is earlier. Non-refundable.

Tax Treatment

EEE Status

Exempt–Exempt–Exempt. Contributions, interest and final payment all tax-free.

✅Rule 4Conditions of Eligibility

The following categories of Central Government employees are eligible to subscribe to the GPF:

Rule 4(1)
Compulsory Subscription – Who Must Subscribe

• All permanent government servants — compulsory from the date of joining permanent service
• All temporary government servants after completing one year of continuous service
• All re-employed pensioners (except those eligible for Contributory Provident Fund)
• Probationers and officiated employees who are likely to be confirmed in permanent service

Rule 4(2)
Voluntary Subscription – Who May Subscribe

• Temporary Government servants within their first year of service (optional before the mandatory threshold)
• Probationers during the probation period (before confirmation)

🚫 Who is NOT eligible: Central Government employees recruited on or after January 1, 2004 are mandatorily covered under NPS (New Pension System) and are NOT eligible to subscribe to GPF. Employees on deputation from state governments, PSUs, or autonomous bodies covered under their own provident fund schemes are also not eligible unless specifically permitted by competent authority.

💰Rule 7Subscription Rules

Rule 7(1)
Monthly Subscription – Rates and Conditions

• Subscription is paid monthly through salary deduction — employee cannot pay in lump sum
• Minimum: Not less than 6% of emoluments (Basic Pay + Dearness Allowance)
• Maximum: Not more than 100% of total emoluments (total salary)
• Subscriber must fix the rate at the beginning of each financial year (April) — change mid-year not permitted except in special circumstances
• Subscription continues even during leave — except during extraordinary leave (subscriber may choose to stop)
• Subscription is NOT deducted during suspension — Rule 7(2) specifically exempts suspension period
• Subscription stops automatically 3 months before the date of superannuation (retirement)

Rule 20
Reduction of Subscription in Special Cases

• A subscriber under suspension may request reduction of subscription to the minimum rate (6%)
• Reduction also permitted when subscriber has taken an advance and is recovering it — in some cases, the competent authority may allow reduced subscription temporarily
• Application for reduction must be made to the Head of Office / Drawing & Disbursing Officer (DDO)

📈Rule 11Interest Rate on GPF Accumulations

Under Rule 11, the Government shall pay interest on GPF balances at a rate declared for each year. The interest is compounded annually and credited on 31st March each financial year. The minimum interest rate is guaranteed at 4% per annum — even if the government declares a lower rate, subscribers who were in service the previous year cannot get less than 4%.

Financial Year
Interest Rate
Status / Notes

Rule 11 – Interest Calculation Method
How GPF Interest is Calculated

• On opening balance (1 April): Interest for full 12 months on the balance as of 1st April
• On subscriptions credited during the year: Interest from the month of credit to 31st March
• On withdrawals: Interest on withdrawn amount stops from the month after withdrawal
• Calculation basis: Interest calculated on the balance at the end of each month — technically on net balance between 5th and last day of each month
• Annual credit: Total interest for the year credited to GPF account on 31st March
• If a subscriber dies during the year, interest up to the date of death is credited

Tax Note: GPF interest is fully exempt from income tax under Section 10(11) of the Income Tax Act, 1961 — there is NO upper limit on exemption (unlike PPF which has a ₹5 lakh cap from FY 2021–22). GPF balance and interest are also exempt from Wealth Tax. The full accumulated balance including interest at retirement is tax-free. This makes GPF one of the most tax-efficient savings instruments available.

🔄Rule 12Advance from GPF – Rules & Conditions

A temporary advance from GPF can be drawn at any time during service (no minimum service period required) for specified purposes. The advance is refundable — it must be repaid in monthly installments and carries no interest beyond the normal GPF interest on reduced balance.

🔵 Advance – Key Conditions (Rule 12)

• Can be drawn at any time after subscription commences — no minimum service
• Amount: up to 3 months’ pay OR 50% of GPF balance, whichever is less
• For special reasons (illness, overseas education, natural calamity): up to 6 months’ pay or 75% of GPF balance
• Must be recovered in not more than 24 equal monthly installments (Rule 12(3))
• Second advance can only be sanctioned after 30 days of full recovery of last installment
• Recovery at death: Any outstanding advance at death is adjusted from final GPF payment
• Interest charged: None separately — advance reduces balance, so less interest earned on balance
• Sanctioning authority: Head of Department for up to ₹1.5 lakh; Ministry for higher amounts

🟢 Withdrawal – Key Conditions (Rule 15)

• After 15 years of service OR within 10 years before superannuation (whichever is earlier)
• Amount: Up to 6 months’ pay OR 50% of GPF balance, whichever is less
• Non-refundable — does not need to be repaid (unlike advance)
• Permitted purposes: Housing, marriage, education, illness, purchase of consumer durables, LTC, pilgrimage, overseas visits
• After the 2017 amendment: No documentation/evidence required for withdrawal up to ₹1 lakh — deemed approval
• Sanction not required from Ministry — Head of Office can sanction within limits
• Conversion of advance into withdrawal permitted after 15 years service
• Second withdrawal: After 12 months from the previous withdrawal date

💸Rule 15Withdrawal Rules – Non-Refundable Withdrawals

Rule 15 governs non-refundable withdrawals from GPF (as opposed to Rule 12 advances which must be repaid). These withdrawals permanently reduce the GPF corpus but do not need to be repaid. They are tax-free.

Rule 15(1) – Eligibility Conditions
When Can You Make a Non-Refundable Withdrawal?

• Primary condition: After completing 15 years of service (not necessarily 15 years of GPF subscription)
• Alternative condition: Within 10 years before the date of retirement on superannuation — whichever of the two conditions is satisfied first
• Example: An employee joining at age 25 reaches 15 years of service at age 40. Their retirement is at age 60. So “10 years before retirement” = age 50. Since 15 years of service at age 40 is earlier, they can withdraw from age 40 onward.

Rule 15(2) – Amount Limits
How Much Can Be Withdrawn?

• Maximum: 50% of GPF balance OR 6 months’ basic pay, whichever is less
• For housing construction/purchase: up to 90% of GPF balance (special provision)
• For repayment of housing loan: up to 75% of balance
• Subsequent withdrawal: Only after 12 months from the date of last withdrawal
• Within 3 years of retirement: Withdrawal can be for any purpose without specifying reason

Rule 16-A – Conversion of Advance into Withdrawal
Converting a Previously Taken Advance to Non-Refundable

• Once a subscriber completes 15 years of service, any outstanding advance can be converted into a non-refundable withdrawal
• Application must be made to the sanctioning authority
• Recovery of converted advance installments is stopped immediately
• Balance outstanding becomes a permanent deduction from GPF corpus (non-refundable)

📝Rule 5Nomination Rules

Every GPF subscriber must make a nomination at the time of joining the Fund, in the prescribed form, conferring the right to receive the GPF balance in the event of the subscriber’s death.

Rule 5 – Nomination Provisions
Who Can Be Nominated and How

• Nomination must be made in Form A (single nominee) or Form B (multiple nominees with shares)
• If the subscriber has a family (spouse, children, dependent parents): Nomination must be in favour of one or more family members only — cannot nominate a non-family member while family exists
• If no family: Can nominate any person(s) including friends, relatives, charitable institutions
• Nomination can be changed at any time by submitting a fresh nomination form to the Head of Office
• Automatic revocation: Nomination in favour of a non-family member becomes automatically invalid if the subscriber later acquires a family member (marries, has children)
• In case of no nomination: The GPF balance is paid to the legal heirs as per succession laws

🎯Rule 34Final Payment of GPF Balance

The entire GPF balance (accumulated subscriptions + interest) is paid as a lump sum on retirement, resignation, death or dismissal. This payment is completely tax-free under Section 10(11) of the Income Tax Act.

On Superannuation

Full Corpus

Entire GPF balance paid within 30 days of retirement. Interest credited until payment date.

On Voluntary Retirement

Full Corpus

GPF balance paid along with other retirement dues. Eligible only after 20 yrs service (VRS).

On Resignation

Full Corpus

Payable on resignation after completing qualifying service, subject to departmental clearances.

On Death (In Service)

Corpus + Bonus

Full GPF balance + additional amount (avg 3-yr balance, max ₹60,000) paid to nominee.

On Dismissal

GPF Payable

GPF balance (employee’s own contributions + interest) is payable even on dismissal/removal. Employer contributions (if any under CPF) may be withheld.

Compulsory Retirement

Full Corpus

Treated same as superannuation for GPF purposes — full balance paid to employee.

Rule 34 – Payment Procedure & Timeline
Steps for GPF Final Payment
1

Application: Subscriber submits GPF final payment application to Head of Office / DDO at least 6 months before retirement (recommended) along with last GPF statement and Service Book.

2

Verification: DDO verifies GPF account details, advances outstanding, nominee details, and prepares Form 3 (DCRG/Commutation) and GPF Final Payment Form.

3

PAO Processing: Pay & Accounts Officer verifies GPF ledger, calculates interest up to payment date, adjusts any outstanding advance, and issues GPF payment authority.

4

Payment: GPF amount credited to subscriber’s bank account via PFMS (Public Financial Management System). Payment should be made within 30 days of the date of retirement (failing which, interest continues to accrue).

5

In case of delay: If payment is delayed beyond 30 days due to PAO/Department fault, subscriber is entitled to interest at GPF rate (7.1%) for the delay period. Subscriber can lodge a grievance at cpengrams.gov.in.

GPF vs NPS – Key Differences

Comparing the two pension savings systems for Central Government employees

⚖️GPF (Pre-2004) vs NPS (Post-2004) – Detailed Comparison

💡 Bottom Line: GPF + OPS together are widely considered far superior to NPS for government employees from a retirement income security standpoint. OPS provides a guaranteed monthly pension (50% of last basic + DA), whereas NPS pension depends on market returns and annuity rates. However, NPS’s 14% employer contribution (vs 0% in GPF) means NPS corpus can be larger at retirement — the trade-off is certainty vs. potential upside.

📜Key Amendments to GPF Rules (1960–2026)

Related Calculators & Guides

🧮GPF Balance CalculatorCalculate corpus with interest at 7.1%
📊NPS CalculatorPost-2004 employees pension estimate
🎁Gratuity CalculatorMax ₹25 lakh tax-free gratuity
📅Leave Encashment300 days EL encashment at retirement
👴OPS Pension Calculator50% of last basic – monthly pension
📈8th CPC Salary CalculatorNew pay from Jan 2026 estimates

Frequently Asked Questions – GPF Rules

Common questions about General Provident Fund rules and regulations

What is the current GPF interest rate in 2026?▾
The page lists the 2025–26 GPF interest rate as 7.1% per annum. Interest is credited annually under Rule 11 and the rate is notified by Government for the relevant period. Use the rate applicable to the financial year being reviewed rather than assuming the latest figure for older balances.
Can employees recruited after 2004 open a GPF account?▾
Employees recruited on or after 1 January 2004 are generally covered under NPS rather than GPF. GPF on this page is presented for eligible pre-2004 Central Government recruits and certain covered categories. For retirement-system comparison, see the NPS vs Old Pension guide.
How much GPF advance can I draw and how is it repaid?▾
A temporary GPF advance is refundable and is recovered through monthly installments. The permissible amount depends on the rule, purpose and balance available. The page summarizes normal and special limits, recovery terms and sanctioning conditions under Rule 12. Always compare the requested amount with the current office order.
Is the final GPF payment taxable at retirement?▾
The page states that final GPF payment on retirement is tax-exempt under the cited GPF/Income Tax treatment. The final settlement normally includes subscriptions plus admissible interest, after adjusting any outstanding advance. Keep the final GPF statement and payment authority with retirement records for future reconciliation.
What happens to GPF if a government employee dies in service?▾
On death in service, the GPF balance is paid according to valid nomination or succession rules after adjusting any outstanding advance. The page also describes an additional death-related amount subject to the stated service and ceiling conditions. Nomination records should be kept current to avoid payment delays.
Can I increase my GPF subscription beyond the minimum 6%?▾
Eligible subscribers can generally revise their subscription within the rule framework, subject to minimum and maximum limits and timing conditions. The page states a minimum linked to emoluments and permits higher voluntary subscription up to the prescribed ceiling. Changes should be routed through the DDO/Head of Office as applicable.
What is the difference between GPF advance and GPF withdrawal?▾
A GPF advance is refundable and must be recovered, while a non-refundable withdrawal permanently reduces the GPF corpus. The two have different eligibility, amount and purpose conditions. Use the Advance and Withdrawal sections on this page to compare the applicable service requirement and sanction rules.
How can I check my GPF balance online?▾
GPF balance access depends on the employee’s accounting setup, department and PAO/DDO systems. Use the official statement or portal available to your office and reconcile opening balance, monthly subscriptions, withdrawals, advances and annual interest. If figures differ, raise the discrepancy with the DDO or PAO.
Can GPF subscription be stopped voluntarily before retirement?▾
GPF subscription is governed by the applicable rules and cannot simply be stopped at will in ordinary service. The page notes specific situations such as suspension, certain leave cases and the period shortly before superannuation where subscription treatment changes. Follow the DDO/PAO instruction for the relevant case.
What is the GPF account number format for Central Government employees?▾
GPF account-number formats can vary by accounting office, department and legacy system. Use the number shown on the official GPF statement, salary record or PAO documentation rather than inferring a format. For correction or missing-account cases, contact the DDO/PAO maintaining the subscriber ledger.

🧮GPF Corpus Estimator – Projected Balance at Retirement

Estimated GPF corpus for different joining salaries and service periods at 7.1% interest, assuming 3% annual increment on basic pay and 10% monthly subscription. City and DA not included in subscription base for simplicity — actual corpus will be higher.

Note: Corpus estimates use 7.1% annual compounding, 3% annual salary increment, 10% GPF subscription of Basic+DA (DA assumed 50% average over career). Actual corpus depends on subscription rate chosen (up to 100%), actual DA rates, advances/withdrawals taken, and exact service period. No advances assumed in this projection. Employees who increase subscription to 20–30% in later years can accumulate significantly larger corpus.