Conditions and Rates of Subscriptions:

As per the provisions under Rule11of KGPF Rules,2016-

1. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Provided that a subscriber may, at his option, not subscribe during leave which either does not carry any leave salary or carries leave salary equal to or less than half pay or half average pay. Provided further that a subscriber on reinstatement after a period passed under suspension shall be allowed the option of paying in one sum, or in instalments, any sum not exceeding the maximum amount of arrear subscriptions permissible for that period.

2. The subscriber shall intimate his election not to subscribe during the leave, referred to in the first proviso to sub-rule (1) under Rule 19 of KGPF Rules, 2016 in the following manner. -

a. If he is an officer who draws his own pay bills, by making no reduction on account of subscription in his first pay bill drawn after proceeding on leave.

b. If he is not an officer who draws his own pay bills, by written communication to the head of his office before he proceeds on leave. Failure to make due and timely intimation shall be deemed to constitute an election to subscribe.

3. The option of a subscriber intimated under this sub-rule shall be final.

4. A subscriber who has, under Rule 19 of KGPF Rules, 2016, withdrawn the amount standing to his credit in the Fund shall not subscribe to the Fund after such withdrawal unless and until he returns to duty.

5. When a subscriber is transferred to Foreign Service or sent deputation within India or out of India, he shall remain subject to the rules of the Fund in same manner as if he were not so transferred or sent on deputation.

6. If any subscriber who is transferred from one establishment to another establishment within the State shall continue to subscribe to the same General Provident Fund account number.

7. The recovery towards subscriptions to the Fund shall be stopped six months prior to the date of retirement of the subscriber.

Procedure and Quantum of Monthly Subscription

As per the provisions under Rule12 of KGPF Rules,2016-

• The minimum rate of monthly subscription payable by a subscriber shall be fixed at the rate of 4 percent of the mean of the Time Scale of Pay of the post held by the subscriber.
• A subscriber may, at his option, propose a subscription higher than the minimum subject to maximum of basic pay as on the 31st of March of the preceding year the pay to which he was entitled on that date.
• The rate of subscription can be enhanced or reduced once at any time during the year and the amount of subscription so fixed shall remain unchanged during that year.
• As per Karnataka Government Finance Department order number “FD08MUB2023" (27 May, 2024), the amount of total subscription towards GPF in a year in respect of a Government servant exceeds 5 lakhs, the interest on the excess subscription is subject to the applicable income tax.
• The Government shall pay to the account of the subscriber interest on the subscriptions at such rates as may be determined periodically.
• The present rate of interest for the year 2023-24 is 7.1% per annum.

Applicability and exemptions:

As per the provisions under Rule5 of KGPF Rules,2016-

1. Subscription to the fund shall be compulsory, -

i. for Government servants, except Group “D” employees specified in the Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957, in pensionable service.

ii. for every temporary Government servant from the date of completing two years of continuous service.

2. In case of a Group-D employee who has already insured his life in the official branch of the Karnataka Government Insurance Department and is unable to insure further owing to average or certified ill-health, subscription to the General Provident Fund will be optional.

3. If a permanent Group-D employee who is admitted as a compulsory subscriber to the fund on account of the fact that his initial proposal for insurance in the Official Branch of the Karnataka Government Insurance Department was rejected is able to secure an insurance policy in the official branch subsequently the nature of such subscription will be changed from compulsory to optional.

4. The provisions of this rule shall not be applicable to a Government servant who has one year of service prior to his retirement on superannuation from the date of commencement of this rule.

5. The provisions of this rule shall not be applicable to a Government servant who joins service on or after 1-4-2006