Group Provident Fund Scheme

Group Provident Fund is one, which is set up by an employer for the employees. The fund is made up of the total accounts of the individual employees put together.

Each employee contributes a given percentage of his/her wage (say 5%) deducted every month and accumulated into this account.

In a contributory funding, the employer also contributes a given percentage of the employee’s wage (say 10%) every month into the same account.

The accumulation continues throughout the entire period of service with the employer. A minimum guaranteed investment rate is declared to the employer.