G.P.

FUND RULES
by
SAFDAR SHAH
 SUBSCRIPTION
 Every Government Official to subscribe after
completion of 2 years service.
 There is no option to postpone the subscription
either during leave except EOL.
 During suspension recovery will take place after
re-instatement.
 If a Government servant is on Foreign Service
he can pay his subscription in cash by depositing
into Government Treasury.
 NOMINATION.
 The nomination can be in favour of any
person, but if he has a family (wife /
wives, children, widows and children of
the deceased sons).
 Any person other then family members.
 Nomination can be revised at any time.
 Nomination can be in favour of more than
one person.
ADVANCE FROM THE FUND:
Conditions:
Advance will be granted only if the
sanctioning authority is satisfied that
the pecuniary circumstance of the
applicant justify it.
 To pay expenses incurred in connection
with the prolong illness of the applicant,
the applicant’s spouse or any person
actually dependent upon him;
 To pay for the overseas passage for reasons
of health or education of the applicant or any
person actually dependent upon him;
 To pay obligatory expenses in-connection
with funeral or ceremonious or in connection
with his marriage or the marriage of any
member of his family or a female relative
actually dependent upon him.
 Amount of Advance
 The advance shall not exceed three
months pay or half of the amount at the
credit of the subscriber in the fund
whichever is less,
b) A second advance may be granted
subject to following conditions.
– A second advance shall be sanctioned by
the authority next above the sanctioning
authority.
– The authority sanctioning the second
advance shall record reasons for
sanctioning the second advance; and
- The outstanding balance of the first
advance with interest, if any, shall be
recovered from the amount of the second
advance being sanctioned so that only one
advance remains outstanding at one time
 RECOVERY OF THE ADVANCE
 In easy installments but number of
installments should not be less than 12
and more than 48.
 ADVANCE FOR CONSTRUCTION /
RENOVATION OF HOUSE.
 An advance for the construction of a
house for occupation by the subscriber
himself or for the purpose of completely
reconstructing or for extending /
renovating a house owned by him or by
his wife and children or by any of them
may be granted subject to the following
conditions:-
 Advance should be as nearly as possible to
the terms and conditions laid down in Para
253-A of the GFR.
 Advance should not exceed 36 months pay
of the subscriber or 80% of the advance at
the credit of the subscriber in the Fund,
whichever is less;
 Land and house constructed thereon is
mortgaged to the President within three
months of the drawl of advance.
 The mortgage deed should be registered
within three months of its execution;
 NON REFUNDABLE ADVANCE
 Only three non-refundable advances, one each
after attaining the age of 45,50 and 55 years
shall be admissible to a subscriber.

 A subscriber who has attained the age of 50

years may draw non-refundable advance to the
extent of 100% of balance in the account on the
date of application for the grant of advance.
 A non-refundable advance applied for
after the subscriber has attained the age
of 45 years but before attaining the age of
50 years shall be admissible for the
purposes and subject to the conditions
mentioned herein:-
 CONDITIONS:-
 Construction of a house (anywhere in
Pakistan) on land owned by him or by his
wife or children or by any of them. The
advance shall mutatis mutandis be
governed by the same terms and
conditions as are applicable to an advance
granted under rule 15-A.
 Completely re-construction or for
extending or renovating a house already
owned by the Government servant
concerned or his wife and children or by
any of them. The advance shall mutatis
mutandis be governed by the same terms
and conditions as are applicable to an
advance granted under rule 15-A.
 Purchase of agricultural land.
 Purchase of a house for his residence.
 Repayment of loan taken from a
financial institution.
 IMPORTANT
 No recovery of the advance shall
be made from the subscriber and
the amount advanced shall be
treated as part of final payment.
 The land / house not to be
required to be mortgaged with
the President.
 In case the house is sold the advance
together with interest accrued
thereon, shall be recovered in a lump
sum.
 In case the advance is not utilized for
the purpose with in 3 months of
drawal the subscriber shall forth with
repay into the Fund the entire amount
of the advance together with interest
accrued thereon, in a lump sum.
 Where an advance is applied to repay a
loan taken from a financial institution the
sanctioning authority shall satisfy itself of
the amount taken and the balance
payable. The amount of advance shall not
exceed the amount of balance amount
payable by the subscriber.
 Rate of Mark up on state provident Fund i.e GP Fund
Year Rate
2003-04 13.50 %
2004-05 12.00 %
2005-06 10.50 %
2006-07 11.00%
2007-08 12.50%
2008-09 15.00%
2009-10 14.00%
2010-11 14.20%
2011-12 13.70%
2012-13 12.00%
2013-14 13.50%
2014-15 11.75%
2015-16 11.10%
Uniform rates of subscription w.e.f 4 July 2011
 BPS Rates BPS Rates
 1 212 12 1160
 2 373 13 1260
 3 403 14 1372
 4 433 15 1520
 5 465 16 1760
 6 498 17 2240
 7 530 18 2800
 8 563 19 3760
 9 595 20 4196
 10 635 21 4656
 11 675 22 5148
Revised rates of subscription w.e.f August 2016
 BPS Rates BPS Rates
 1 337 12 1851
 2 596 13 2010
 3 646 14 2194
 4 692 15 2425
 5 745 16 2806
 6 798 17 3579
 7 844 18 4471
 8 897 19 5998
 9 951 20 6693
 10 1012 21 7426
 11 1081 22 8210
 Fin.Div. OM .No F1(5)-Reg.7/87-357 , dt 10.8.2016
Uniform rates of subscription w.e.f 7 July 2015
 BPS Rates BPS Rates
 1 274 12 1504
 2 482 13 1634
 3 522 14 1775
 4 562 15 1965
 5 604 16 2275
 6 643 17 2898
 7 686 18 3635
 8 729 19 4872
 9 772 20 5444
 10 822 21 6041
 11 873 22 6678
 Fin.Div. OM .No F1(%)-Reg.7/87-301,dt 27.8.2015
 Calculation of interest on GP
Fund
Name : X Y Z
Period: July 2006 to June 2007

i- Progressive total method

Formula:- Progressive Total x Rate of interest

12
Opening Balance Rs.235,000

Month/year Subscription Progressive total

July, 06 1290/- 1290

August,06 1290/- 2580
Sept., 06 1290/- 3870
October, 06 1290/- 5160
Nov., 06 1290/- 6450
Dec., 06 1290/- 7740
Jan., 07 1290/- 9030
Feb., 07 1290/- 10320
March, 07 1290/- 11610
April, 07 1290/- 12900
May, 07 1290/- 14190
June, 07 1290/- 15480
Total 1, 5480/- 100,620
Interest on current subscription
100,620 x10.5 % = 880.43
12
Interest on previous balance 235,000 X 10.5% = 24,675

OB 235,000

Current deposits 15,480

Closing balance 276,035.43

 ii- Formula method
( if the subscription is same and there is no
break )

Rate of Subscription x 6.50 + OB x Rate of Interest

1290 x 6.50 + 235,000 x 10.5 % = 25,555.43 (Interest)

235,000 + 15,480 + 25,555.43 = 276,035.43

Thank You