GP Fund or General Provident Fund is the amount that is being deducted from the pay of an employee on monthly basis at a fixed rate. This amount is actually the employees own amount that is given to the employee at the end of service or the employee can get it as and when he/she need it. Below the age of 45 the employee can get GP Fund Advance as refundable and at the age of 45 or more he/she may get the GP Fund advance non-refundable. I will here explain you the detail of the GP Fund Interest Amount and the method of calculating it.
Here is to mention that the employee can get 80 % of the total amount in his credit. Suppose an employee has Rs. 100000/- in his GP Fund balance then the employee can draw Rs. 80,000/- after sanctioning the higher authorities.
The formula for the calculation of GP Fund Advance Interest is as under:
GP Fund Advance Interest Amount=
Total Amount x Total Number of Installments/500
Generally the total number of Installments is 48.
Example of GP Fund Advance Interest Amount:
Suppose an employee gets 50,000/- as GP Fund Advance then the total interest on this amount will be as under:
50,000 x 48/500 = Rs. 4800/-
Thus the employee will have to pay Rs. 4800/- as interest amount and hence total amount along with interest will be Rs. 54,800/-
You will also like to see: GP Fund Interest Rates 1963 to 2012-13