Government employees covered by GPF and eligible private-sector employees under EPF can access their savings before retirement, but the two schemes differ in how advances or withdrawals work. Here’s a look at the key differences in eligibility, withdrawal limits, repayment and other provisions.
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Both government and private-sector employees can build their retirement savings through provident fund accounts, but the contribution rules, governing bodies and withdrawal provisions under the two frameworks differ.
The general provident fund (GPF) is meant for government employees, who contribute to the scheme without any matching contribution from their employer. In contrast, the employees' provident fund (EPF) covers those in the organised private sector, with both the employee and employer contributing to the fund.
Individuals are allowed to access their provident fund balance before retirement under specified circumstances. However, the terms and conditions for taking an advance can differ between the two schemes.
Who is eligible for GPF and EPF
The primary objective of both schemes is to provide a dependable source of income after retirement to employees of different sectors.
| Who is covered | Government employees | Private-sector employees |
| Who contributes | Employee only | Both employee and employer |
| Interest rate | 7.1% | 8.25% |
| Administered by | Department of Pension & Pensioners' Welfare | EPFO |
| Joining cut-off | Employees who joined before 1 January 2004 | No cut-off |
| Wage limit | No such wage ceiling | ₹25,000/month |
It must be noted that government employees joining after 2004 are not eligible for GPF because they are covered under the National Pension System (NPS). Hence, the withdrawal rules and other conditions only apply to those who are covered under the old pension scheme.
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