General Provident Fund (GPF) Overview

The General Provident Fund (GPF) is a mandatory savings scheme for West Bengal government employees. It serves as a secure retirement corpus. The state government periodically revises the interest rate, which currently stands at 7.1% per annum.

Key Rules & Deductions

• Minimum Deduction: Employees must contribute a minimum of 6% of their basic pay to the GPF account.
• Maximum Deduction: The maximum allowable deduction can go up to 100% of the basic pay.
• Mid-Year Changes: Employees are allowed to modify (increase or decrease) their monthly subscription amount twice during a financial year.
• Advances & Withdrawals: Non-refundable advances and part-final withdrawals are permitted for specific purposes such as medical emergencies, higher education, or housing, subject to fulfilling minimum service criteria.

How Interest is Calculated

The interest is calculated based on the monthly progressive balance. The formula used is:
Interest = (Sum of all progressive monthly balances × Rate of Interest) / 1200
The accumulated interest is credited to the employee's account at the end of the financial year (March 31st).