GPF Withdrawal Rules for State & Central Govt Employees

General Provident Fund (GPF), provides financial assistance to government employees in India. The main objective of this fund is to offer a dependable source of income post-retirement. Although the returns are given upon maturity, government employees can withdraw funds from the GPF to meet educational expenses, housing needs, medical emergencies, and others.

There are some specific GPF withdrawal rules that ensure well-managed funds while meeting employees' financial needs. Proper understanding of these withdrawal rules helps employees meet their future financial needs. Continue reading this blog to gain detailed insights about the latest GPF withdrawal rules before retirement and more.

What Is GPF (General Provident Fund)?

The General Provident Fund (GPF) is a beneficial investment scheme for government employees. With this long-term investment option, government employees can accumulate savings over the tenure of their employment.

This scheme is, however, meant for government employees only. The employees are mandated to invest a certain percentage of their salary towards the fund. This amount is deducted from the monthly salary of employees and it accumulates interest at a predetermined rate. 

The GPF scheme is administered under the Department of Pension and Pensioner's Welfare, under the purview of the Ministry of Personnel, Public Grievances and Pensions. This scheme provides several unique benefits that include low-risk investments, as well as tax savings with guaranteed returns. 

The GPF scheme enables employees to withdraw money and utilise it to meet various needs such as education, marriage, and medical emergencies. 

GPF Withdrawal Rules

Here are the GPF withdrawal rules applicable to government employees:

• A subscriber is entitled to withdraw about 75% of the outstanding balance in PF or his/her 12 months of emoluments, whichever is less. This withdrawn amount can be utilised only for meeting educational expenses or for the marriage of a dependent family member or self.
• During cases of sudden critical illness or being a dependent family member, individual subscribers are eligible for withdrawal of up to 90% of the outstanding balance. 
• However, following the new GPF withdrawal rules, this amount can be availed within 7 days.
• With the GPF withdrawal amount, subscribers can buy a plot of land to construct a house, repay an existing home loan, buy a house, or even repair an ancestral house. 
• This amount is limited to 90% of the outstanding balance available in the PF account.
• Subscribers can withdraw money to fulfil their dreams of buying a car, motorcycle, etc. Additionally, the amount can be utilised for extensive repairing of motor cars, loan repayment, and depositing money for booking a motorcycle, scooter, motor car and other vehicles. 
• A subscriber, however, can withdraw 75% of the amount or the cost of the vehicle, whichever will be lower for meeting these purposes.
• According to the latest GPF rules, subscribers can withdraw money to purchase consumer durables, including air conditioners, washing machines, etc. 
• Make sure to use the withdrawn amount only to meet the desired purpose.
• According to GPF withdrawal rules for the purchase of a flat or house, subscribers can withdraw up to 90% of the total credit. Moreover, the money can be withdrawn for home loan repayment, purchase of plots, renovations, additions and more. 
• Subscribers can decide to withdraw up to 90% of the balance amount in their GPF without stating any specific reason before 2 years of retirement. This privilege was reserved earlier for about 1 year before retirement.
• To experience any additional benefits, following the GPF part final withdrawal rules, the subscriber must be in service for 5 years or more.
• Apart from the premature withdrawal process, in case of the sudden demise of the subscriber, the outstanding amount can be withdrawn. 
• The nominee is eligible to claim the additional amount, which equals the average of 3 years of PF balance before the occurrence of such an event. However, this extra amount should not exceed about Rs. 60,000.
• Apart from all these, subscribers can withdraw the full corpus amount once they have retired or upon superannuation.

GPF Withdrawal Eligibility

General Provident Fund (GPF) withdrawal eligibility means the underlying conditions under which government employees in India can withdraw their desired amount from the GPF account. Withdrawal eligibility depends on several factors, including the purpose of withdrawal, years of service, and certain rules set by the government. With a proper understanding of GPF withdrawal eligibility, employees can efficiently manage their funds and gain financial assistance when needed. 

Here is a detailed overview of the eligibility criteria for withdrawal from GPF:

• A permanent government employee who is a resident of India can subscribe to GPF.
• Government employees are employed in organisations functioning under the EPF Act of 1952.
• All temporary government employees holding an employment record of 1 year or more qualify for withdrawal eligibility.
• Any retired government pensioner re-employed and doesn't qualify for the Contributory Provident Fund can subscribe to GPF.

Conclusion

The General Provident Fund (GPF) is a savings plan designed specifically for government employees. With this mandatory retirement scheme, employees can experience a decent standard of living and live a relaxing and stress-free life during their golden years. 

Moreover, the GPF withdrawal rules are flexible, providing crucial financial support to government employees during their times of need. The returns can be used to meet future goals that include education fees for children, house loans, marriage expenses, and any medical emergencies. 

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4. GPF Balance Check: How to Check GPF Account Balance Online?