GEPF COMPULSARY SCHEME
Membership to the Scheme
Employees qualifying to be members are those working under operational service scales and contracted employees.
The Fund derives its members from Central Government, Independent Government Departments, Commissions and Government implemented projects. Contribution Members are required to contribute a total of 25% of their monthly salary. This amount is shared such that employer contribute 15% and employee 10%. This amount assures members of a net saving equivalent to three months salary every year. Further members’ contribution and gratuity is exempted from taxes.
The Fund derives its members from Central Government, Independent Government Departments, Commissions and Government implemented projects. Contribution Members are required to contribute a total of 25% of their monthly salary. This amount is shared such that employer contribute 15% and employee 10%. This amount assures members of a net saving equivalent to three months salary every year. Further members’ contribution and gratuity is exempted from taxes.
Benefit offered by GEPF
GEPF pay members the following benefits:
- Retirement benefits (gratuity)
- Survivors benefit (paid to dependants on death of a member)
The amount paid for retirement and survivors benefits depends on the members’ accumulated contribution and accrued interest to the Fund.
Loans to members
GEPF provide loans to members while still working with 5% simple interest to help them prepare for their life after work. Members are allowed to borrow the amount contributed from deduction of one’s salary i.e. (10%) without including employer’s contributions. Loans are issued for different purposes depending on the need of the applicant. Commonly received loan application is for the purpose of construction, education, health matters, small business and other income generating activities. Loan repayment is done through monthly salary deductions, recovering period is 18 months.
Requirements for Benefit payment
For the member’s benefit to be paid, the following requirements are important:
- He/she must have reached retirement age, concluded employment contract, dismissed or left employment on own will.
- Must have evidence of letter of retirement or indicating the employment contract from the employer.
- To be informed of the status of submission of their contribution.
- To apply and receive loans from the Fund.
- To request for information from the Fund.
- To be informed of the amount standing to his/her account in the Fund on annual basis.
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