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Rule 1 - GPF Applicability | KartavyaDesk

GPF Rules

Original Rule Text

Provided further that a temporary Government servant, who is borne on an establishment or factory to which the provisions of Employees' Provident Funds Scheme, 1952, framed under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), would apply or would have applied but for the exemption granted under Section 17 of the said Act, shall subscribe to the General Provident Fund if he has completed six months' continuous service or has actually worked for not less than 120 days during a period of six months or less in such establishment or factory or in any other establishment or factory to which the said Act applies, under the same employer or partly in one and partly in the other.

What This Means

This rule clarifies the applicability of the General Provident Fund (GPF) to temporary government employees working in establishments or factories already covered by the Employees' Provident Funds Scheme, 1952 (EPF). Essentially, if a temporary government employee works in a factory or establishment where the EPF scheme *would* normally apply (or *would have* applied but for an exemption), they are required to subscribe to the GPF instead, provided they meet certain service requirements. This ensures that these employees have a retirement savings mechanism in place.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • Applies to temporary government servants in EPF-covered establishments/factories.
  • GPF subscription is mandatory if the EPF scheme would normally apply.
  • Service requirement: 6 months continuous service OR 120 days of work in 6 months or less.
  • Service can be under the same employer in one or more EPF-covered establishments/factories.

Practical Example

Ramesh Kumar is a temporary government employee working in a government-owned textile factory that, under normal circumstances, would be covered by the Employees' Provident Funds Scheme, 1952. However, the factory has been granted an exemption under Section 17 of the Act. Ramesh has been working continuously for the past seven months. According to Rule 1 of the GPF rules, Ramesh is required to subscribe to the General Provident Fund because he has completed more than six months of continuous service in an establishment that would otherwise be under the EPF scheme. His contributions will be deducted from his salary and deposited into his GPF account.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

I am a temporary employee. How do I know if this rule applies to me?
Check if your establishment or factory would normally be covered under the Employees' Provident Funds Scheme, 1952. If it would, and you've completed the minimum service requirement (6 months continuous or 120 days in 6 months), then this rule applies.
What happens if my establishment is exempt from the EPF scheme?
Even if your establishment is exempt from the EPF scheme, if it *would have* been covered otherwise, this rule still applies if you meet the service requirements.
Does the 120 days of work have to be consecutive?
No, the 120 days of work do not need to be consecutive, but they must be completed within a period of six months or less.
If I transfer to another government department, does my GPF account transfer as well?
Yes, your GPF account will be transferred to your new department. You need to inform your accounts officer about the transfer.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 1 of the General Provident Fund Rules, a temporary government servant working in an establishment covered under the Employees' Provident Funds Scheme, 1952, is required to subscribe to the GPF if they have completed:

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