GPF CALCULATION - INTEREST 

EXTRACT OF RULE 12 OF MAHARASHTRA GENERAL PROVIDENT FUND RULES,1998 (Corrected upto 14th February 2017)- Refer Page 7 to Page 10 of the Rules 
12. Interest. — (1) Subject to the provisions of sub-rule (5) Government shall pay to the credit of the account of a subscriber interest at such rate as may be determined for each year according to the method of calculation prescribed from time to time by the Government of Maharashtra: Provided that, if the rate of interest determined for a year is less than four percent, all existing subscriber’s fund in the year preceding that for which the rate has for the first time been fixed at less than four percent shall be allowed interest at 4 percent: Provided further that, subscriber who was previously subscribing to any other Provident Fund of another Government and whose subscriptions with interest thereon have been transferred to his credit in the fund under rule 32 shall also be allowed interest at 4 percent if he had been receiving that rate of interest under the rules of such other provident fund under the provisions similar to that of the first proviso to this rule. 
(2) Interest shall be credited with effect from the last day in each year in the following manner:- (i) on the amount at the credit of the subscriber for the last day of the preceding year, less any sum withdrawn during the current year interest for 12 months. (ii) sums withdrawn during the current year interest from the beginning of the current year up to the last day of the month preceding the month of withdrawal. (iii) on all sums credited to the subscriber’s account after the last day of preceding year interest from the date of deposit up to the end of the current year. (iv) the total amount of interest shall be rounded to the nearest whole rupee, 50 paise to be rounded up to the next higher rupee: Provided that when the amount standing to the credit of the subscriber has become payable, interest shall thereupon be credited under this sub-rule in respect of only the period from the beginning of the current year or from the date of deposit as the case may be, up to the date on which the amount standing at the credit of subscriber becomes payable. 
(3) In this rule, the date of deposit shall, in case of recovery from emoluments, be deemed to the first day of the month in which it is recovered, and in the case of an amount forwarded by the subscriber, shall be deemed to be the first day of the month of receipt, if it is received by the Accounts Officer before the 5th day of that month, but if it is received on or after the 5th day of that month, 1st day of the next succeeding month: Provided that where the emoluments for the month are drawn and disbursed on the last working day or last but one working day of the same month, the date of deposit shall in the case of recovery of his subscription be the 1st day of the succeeding month: Provided further that where there has been delay in the drawal of pay or leave salary and allowances of a subscriber and consequently in the recovery of his subscription towards the fund, the interest of such subscription shall be payable from the month in which the pay or leave salary of the subscriber was due under the rules irrespective of the month in which it was actually drawn: Provided also that in the case of amount forwarded in accordance with the provision of sub- rule (2) of rule 11, the date of deposit shall be deemed to be the first day of the month if it is received from the Accounts Officer before the 15th day of that month. 

(4) In addition to any amount to be paid under Rules 28,29 or 30, interest thereon upto the end of the month, in which the payment is made or upto the end of the 6th month after the month in which such amount becomes payable, whichever of this period is less, shall be payable to the person to whom such amount is to be paid: Provided also that where the Accounts Officer has intimated to that person or his agents the date on which he is prepared to make payment in cash or has posted a cheque in payment to that person interest shall be payable only upto the end of the month preceding the date so intimated or the date of posting the cheque as the case may be: Provided also that if the balance amount in the provident Fund Account of the subscriber is authorised by the Accounts Officer, but is actually paid after a period of one month to the subscriber or his heirs, as the case may be, through the Office where the subscriber was last working, the interest on the amount mentioned in this clause shall be calculated upto the date on which the amount is actually paid to the subscriber or his heirs, as the case may be, in accordance with the provisions laid down in this clause: Provided also that where a subscriber on deputation to a body or corporation owned or controlled by the Government or autonomous organisation under the society’s Registration Act, 1860 (21 of 1860) is subsequently absorbed in such Body/Corporation or Organisation with effect from retrospective date, for the purpose of calculating interest due on the found accumulation of the subscriber the date of issue of the orders regarding absorption shall be deemed to be the date on which the amount to the credit of the subscriber became payable subject however, to the condition that the amount recovered as subscription during the period commencing from the date of absorption and ending with the date of issue of orders of absorption shall be deemed to be subscriptions to the fund only for the purpose of awarding interest under this sub-rule. 

Note. –(1) Payment of interest on the fund beyond a period of six months may be authorised by,–

(a) The Accounts Officer upto a period of one year, and

(b) The immediate supervisory Officer to the Accounts Officer (which expression includes Deputy Accountant General or Senior Deputy Accountant General, or the Accountant General, Heads of Offices in the case of Group ‘D’ Government servants and Chief Executive Officers of the Zilla Parishads in case of Zilla Parishads employees) upto any periods. After he has personally satisfied himself that the delay in payment was occasioned by the circumstances beyond the control of the subscriber or person to whom such payment was to be made, and in every such case the administrative delay involved in the matter shall be fully investigated and action, if any, required to be taken. 
(5) If subscriber holds a temporary post exercise on termination of his appointment, the option allowed by rule 28 of leaving in the fund, the amount accumulated to his credit, interest shall be allowed on that amount for not more than 6 months after the termination of the employee. If he obtains re-employment, under Government, deposits not withdrawn, will commence again to bear interest from the date on which subscriptions are renewed. 
(6) Interest shall not be credited to the account of a subscriber if he informs the Accounts Officer that he does not wish to receive it, but if he subsequently asks for interest, it shall be credited with effect from the first day of the year in which he asks for it. 
(7) The interest on amounts which under sub-rule (3) of rule 11, rule 25 or rule 26 are replaced at the credit 
of the subscriber in the fund, shall be calculated at such rates as may be successively prescribed under sub-rule (1) of this rule and so far as may be in the manner described in this rule. 
(8) In case a subscriber is found to have drawn from the fund an amount in excess of the amount standing to his credit on the date of drawal, overdrawn amount, irrespective of whether the overdrawal has occurred in respect of the advance or withdrawal or final payment from the Fund, shall be repaid by him with interest thereon, in one lump sum or in default, be ordered to be recovered by deduction in one lump sum, or suitable instalment as may be determined by the Competent Authority, from the emoluments of the subscriber, for the purpose of this sub- rule the rate of interest to be charged on overdrawn amount would be 2 1⁄2 percent over and above, normal rate of provident fund balance under sub-rule (1) prevailing on the date of actual withdrawal of the amount, interest realised on the overdrawn amount shall be credited to the Government Account under a separate sub-head. “Interest on overdrawals from the Provident Fund” under the Head “0049=Interest receipts 04; interest receipts of State/Union Territory Government; 800 other receipts.”

Explanation. – (1) As a result of revision of pay scales, the arrears of provident fund subscription would become due from the month in which it is payable, in respect of such Government servants as were subscribing to their provident fund accounts at the minimum rate prescribed under the rules. The interest on arrears of subscription shall be payable from the month in which pay under the revised pay rules was due irrespective of the month in which such arrears are actually credited. 
(2) As per rule 8(1)(b), the maximum subscription admissible is not more than the emoluments of subscriber, hence the subscriptions in excess of the maximum permissible subscription will not carry interest. 
(3) If a subscriber found absconding, interest shall be allowed upto 6 months from the date of report from the police that the employee has not been traced. 
(4) When a subscriber retires on superannuation, the period of 6 months for allowing interest shall exclude the immediate succeeding month. 
(5) If the order of payment is issued after the 15th, it will be payable in the next month, and in such cases full interest shall be allowed for the month in which the order is issued. 
 

GPF Interest Rates Period Interest