Three small lines on a federal payslip are often read as one cost: GP Fund, Benevolent Fund and group insurance. They behave very differently. Before comparing them with your colleagues' slips, check four things.
- Who sets the amount. GP Fund depends on your basic pay scale. Benevolent Fund and group insurance depend on a pay slab, using pay that counts for pension.
- Whose money it becomes. GP Fund builds a balance in your name. The other two buy benefits paid on specific events.
- What it earns. Only the GP Fund earns interest, unless you choose an interest-free account.
- Who pays. For non-gazetted staff in BS 1 to 15, the government pays the group insurance premium, so it should not appear as your deduction.
Three payslips side by side
The pay figures below are illustrative pensionable pay; enter your own in the calculators. GP Fund rates are from the Finance Division OM of 13 August 2026 for the 2026 pay scales, first deducted from August pay paid on 1 September 2026. Benevolent and insurance slabs are from the Seventh and Eighth Schedules in the Benevolent Fund manual (2023 edition).
| Employee | GP Fund | Benevolent Fund | Group insurance | Total deducted | Family grant / sum assured |
|---|---|---|---|---|---|
| BS-7, non-gazetted, pay Rs 30,000 | Rs 1,805 | Rs 720 | Rs 654, paid by government | Rs 2,525 | Rs 8,600 a month / Rs 600,000 |
| BS-14, non-gazetted, pay Rs 60,000 | Rs 4,673 | Rs 960 | Rs 981, paid by government | Rs 5,633 | Rs 10,100 a month / Rs 900,000 |
| BS-17, gazetted, pay Rs 95,240 | Rs 7,619 | Rs 960 | Rs 1,090 | Rs 9,669 | Rs 10,100 a month / Rs 1,000,000 |
Two patterns stand out. The GP Fund deduction rises steeply with scale, while the Benevolent Fund deduction stops rising at Rs 960 once pay passes Rs 39,000, so the BS-14 and BS-17 employees pay the same and their families have the same monthly grant. And the BS-17 officer pays Rs 1,090 for insurance that the BS-14 employee receives free.
GP Fund: a subscription by scale that earns interest
The biggest step in the lower scales is between BS-11 and BS-12, where the subscription rises by Rs 1,658 a month. Under Rule 6 of the GP Fund rules, subscription is compulsory for permanent employees and for temporary employees after two years' continuous service.
Interest is credited once, on 30 June. Rule 14 gives the opening balance a full year of interest and each month's deduction interest from the month it is recovered, which adds up to 78 subscription-months a year. Each closing balance becomes the next year's opening balance, so the fund compounds yearly; compound vs simple interest shows why that matters over a career.
For the BS-14 employee with Rs 400,000 on 1 July: (4,800,000 + 364,494) × 12.05 ÷ 1,200 = Rs 51,860, so the balance on 30 June is 400,000 + 56,076 + 51,860 = Rs 507,936.
| Account | Subscriptions added | Interest credited | Balance after ten years |
|---|---|---|---|
| Interest credited | Rs 560,760 | Rs 1,337,967 | Rs 2,298,727 |
| Interest-free (Rule 14(5)) | Rs 560,760 | None | Rs 960,760 |
The rate is the big unknown. Each year's rate is fixed after the year ends: 13.97% for 2023-24, 12.46% for 2024-25 and 12.05% for 2025-26. A ten-year projection at one rate is an assumption, not a forecast.
GP Fund CalculatorProject your own GP Fund balance from your scale, latest statement balance and an assumed rate.Benevolent Fund and group insurance: deductions set by pay slab
The Seventh Schedule, in force from 1 July 2013, fixes the benevolent deduction and the matching family grant: from Rs 120 and Rs 4,000 for pay up to Rs 5,000, to Rs 960 and Rs 10,100 above Rs 39,000. FEB&GIF's FAQ says the slab uses basic pay plus special, technical and personal pay and other pensionable emoluments. Under the 2015 amendment to the 1969 Act, the grant is paid to a spouse for life, or to other eligible family members for 15 years.
The Eighth Schedule, from 1 December 2013, sets the group insurance premium and sum assured, from Rs 381 for Rs 350,000 up to Rs 1,090 for Rs 1,000,000 above Rs 65,000 of pay. The sum assured is paid only on death in service. The Ninth Schedule adds a lump sum on invalid retirement: Rs 150,000 for BPS 1 to 10, Rs 210,000 for 11 to 16, Rs 270,000 for 17 to 19 and Rs 390,000 for 20 to 22.
Punjab government servants see a different line. The Punjab Benevolent Fund states a contribution of 3% of basic pay, so the same Rs 95,240 would mean Rs 2,857 a month, with a published family grant of Rs 6,500 for BS 16 to 17.
Benevolent Fund CalculatorFind your benevolent and group insurance slab, monthly deduction and the benefits linked to it.What a payslip check cannot tell you
- GP Fund advances and their recovery, withdrawals, arrears and a mid-year joining date all change the real ledger; your annual statement is the record.
- If you joined federal service under the newer contributory pension arrangement, check your appointment letter and payslip before using this GP Fund example. The sources used here do not establish whether a GP Fund deduction applies to your appointment.
- Marriage, education, burial and farewell grants from the Benevolent Fund, and any schedule change after the 2023 manual, are not covered.
- The Punjab Fund's website does not give an effective date for its figures, so confirm them with the Fund or your accounts office.
Your GP Fund balance is separate from the pension and its commutation lump sum, which are explained in the federal 7/300 pension formula.