DoPT has implemented a ceiling of Rs 5 lakh on subscription to the General Provident Fund (GPF) for members of All India Services subscribing to the AIS Provident Fund.
The Department of Personnel & Training (DoPT) has implemented a ceiling of Rs 5 lakh on subscription to the General Provident Fund (GPF) for members of All India Services subscribing to the AIS Provident Fund.
In a letter to Chief Secretaries of all States and Union Territories dated 6th January 2023, DoPT said, “ it has been decided to implement the decision of the Government, contained in the aforesaid instruction/clarification to all members of All India Services mutatis — mutandis, pending amendment in AIS (Provident Fund) Rules,1955.”
Through an Office Memorandum (O.M.) dated 2nd November 2022, the Department of Pension and Pensioners’ Welfare (DoPPW) had said that “the sum of the monthly subscription by a subscriber under the GPF during a financial year together with the amount of arrear subscriptions deposited in that financial year shall not exceed the threshold limit (at present Rupees Five Lakh)”.
The amendment Notification limiting the maximum annual GPF subscription was issued on 15th June 2022.
In the case of GPF subscribers whose deposits had crossed the Rs 5 lakh limit, the DoPPW had issued the following instructions:
- In the case of those Government servants, whose GPF subscription during the current financial year (i.e. 2022-23) has already exceeded the threshold limit of Rs. 5 lakhs, no further deduction of GPF subscription may be made from their salary in the current financial year.
- In the above cases, the provision regarding minimum monthly subscription of 6% of the emoluments shall be deemed to have been relaxed.
- In the case of those Government servants, whose GPF subscription during the current financial year (i.e. 2022-23) has not yet reached/exceeded the threshold limit of Rs. 5 lakh, further deductions towards GPF subscriptions during the current financial year may be phased out in such a manner that the total subscription during the current financial year does not exceed Rs 5 lakh.
- In cases where the total contribution is likely to exceed Rs 5 lakh even with minimum monthly subscription of 6% of the emoluments, deduction of GPF subscription from the salary may be stopped as soon as the total contribution in the current financial year reaches Rs. 5 lakh. In such cases also, the provision regarding minimum monthly subscription of 6% of the emoluments shall be deemed to have been relaxed.
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As per General Provident Fund (Central Services), Rules, 1960, the amount of subscription to the GPF in respect of a subscriber, shall not be less than 6% of the emoluments and not more than total emoluments of the subscriber. These rules were amended in June 2022 for capping the maximum contribution limit to Rs 5 lakh.
