The state government has been given a big relief by the cabinet. After the decision of the cabinet, now the GPF deduction has been approved for all these employees. After its implementation, the state employees will get a big benefit and the employees will be able to take advantage of this if needed in future. The State Government of Rajasthan has decided to amend the General Provisional Fund Rules, 2021.
With this decision, all the employees of the state will be kept under the purview of GPF. Along with this, the Rajasthan cabinet has amended the Rajasthan Agricultural Produce Market Act and the rules for allotment of 2,397 hectares of land for the 1,000 MW solar power project in Jaisalmer. During this, a meeting was held on Saturday under the chairmanship of Chief Minister Ashok Gehlot. A resolution has also been passed to rename Bharatpur Medical College after former Chief Minister Jagannath Pahadia.
On which employees will GPF be applicable?
Food Minister Pratap Singh Khachariyawas informed that the cabinet decided to amend the ‘Rajasthan State Employees GPF Rules, 2021’. Under this proposal, the GPF Rules, 2021 will be applicable to the state employees appointed on and after January 1, 2004. With this, these employees will also be deducted from GPF like the employees appointed before 2004.
What is GPF and what happens?
General Provident Fund (GPF) General Provident Fund Rules Account is only for government employees. GPF is a type of retirement plan, which raises retirement fund for the employees and this amount is received at the time of retirement of the employees. It is similar to EPF and works on the same basis.
How much and how is the deduction and what is the benefit?
Government employees can contribute up to 15% of the salary to the GPF account. Under this, an advance feature is available, in which the employee can withdraw the fixed amount from the GPF account if needed and can deposit it later. No tax was also charged on this, the government has reduced the interest rate of GPF to 7.1 percent for the quarter from July 1, 2021 to September 30, 2021. In this scheme also the interest is fixed on quarterly basis.