Interest on GP Fund Deductions made during Contract Period -AG dt 16.03.2021
OFFICE MEMORANDUM
Subject: GP Fund Deductions
Please refer to your letter No. DAO/MBD/ADMN/HM-1035, dated: 23-11-2020 on the above captioned subject.
In the light of Part-VII clause 1.13 (1) (a) of GP Fund Rules, 1978 (Copy Enclosed) which is self-explanatory, it is advised that the up to date interest shall be admissible for the period a Govt. Servants served on regular basis while the period served on contract basis, the interest shall not be admissible and also deductions of GP Fund cannot be made and if any deduction for the contract period has been made, the same amount shall be payable to the said Govt. Servant without interest as reimbursement of excess deposit and shall not be included in the GPF Account balance of the subscriber if he is regularized afterwards.
Furthermore, in case of EOL Period availed by the employees/ subscriber, the interest may also be admissible on the accumulated balance in the period of EOL as well as available on the date at which the Govt. Servant proceeded on such leave.
