GDS Circle Welfare Fund (CWFGDS) | Circle Welfare Fund for Gramin Dak Sevaks (CWFGDS)
Circle Welfare Fund for Gramin Dak Sevaks (CWFGDS): A Strengthened Social Security Framework
The Department of Posts, Government of India, has introduced a revised and comprehensive scheme titled Circle Welfare Fund for Gramin Dak Sevaks (CWFGDS) vide Office Memorandum dated 11.02.2026
This revised scheme supersedes earlier instructions and aims to enhance financial security and welfare support for Gramin Dak Sevaks (GDS) across the country.
With over 2.67 lakh Gramin Dak Sevaks managing nearly 1.40 lakh Branch Post Offices in rural India, this welfare initiative plays a crucial role in safeguarding the interests of grassroots postal employees.
Objective of the Scheme
The primary objective of CWFGDS is to provide financial assistance and welfare support to Gramin Dak Sevaks and their families during times of hardship, including:
Death (natural, accidental, or during duty)
Major illnesses and surgical operations
Accidents during duty
Educational assistance for children
Natural calamities
COVID-related assistance
Retirement benefit for non-claimants
The scheme ensures structured and timely financial relief under clearly defined provisions.
Key Features of CWFGDS
1. Mandatory Membership
Applicable to all regularly engaged GDS.
Not applicable to substitutes or provisional GDS.
Membership continues up to the age of 65 years.
Annual subscription is compulsory.
2. Subscription and Funding Structure
Subscription Rate: ₹480 per annum (₹40 per month)
Recovered in one lump sum in April every year.
New recruits contribute on a pro-rata basis.
Additionally, the Central Postal Welfare Fund contributes ₹200 per GDS per year to the respective Circle Fund
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Thus, the Fund is built through:
Member contributions
Central grant-in-aid
Donations and other approved collections
Three Major Components of the Scheme
(A) Financial Grants (Non-Repayable)
Financial assistance is provided under various categories:
| Category | Assistance Amount |
|---|---|
| Death (general) | ₹11,000 |
| Death due to terrorist activity (on duty) | ₹1,65,000 |
| Death due to terrorist activity (off duty) | ₹13,200 |
| Death due to accident (on duty) | ₹27,500 |
| Funeral expenses | ₹5,500 |
| Major surgical operations | Up to ₹30,000 |
| Accident hospitalization | ₹5,500 |
| Nutritional support for TB patients | ₹220–₹440 per month |
| Natural calamities | ₹5,500 |
| COVID assistance | ₹50,000 |
These grants are governed by detailed eligibility and procedural guidelines
(B) Low-Interest Loan Facility
GDS are eligible for loans at concessional rates (5% or 3% simple interest) for:
Construction of one room for Branch Post Office
Purchase of Computer/Laptop
Purchase of Two-Wheeler
Purchase of Electric Two-Wheeler
Purchase of Mobile/Tablet
Maximum loan eligibility: ₹1,00,000
Maximum two loans in entire service
Loan must be fully repaid before next eligibility
This promotes infrastructure improvement and digital empowerment among GDS.
(C) One-Time Retirement Benefit
A unique feature of the scheme is the one-time repayment to GDS who have not availed any financial assistance during service.
| Years of Contribution | Retirement Benefit |
|---|---|
| 5 years | ₹1,000 |
| 10 years | ₹2,000 |
| 20 years | ₹4,500 |
| 30 years | ₹6,500 |
| 40 years | ₹9,000 |
| 45+ years | ₹11,000 |
This provision rewards disciplined contributors who did not claim benefits.
Educational Scholarships
CWFGDS also supports children of GDS through scholarships:
IIT/AIIMS/IIM students – ₹1,100 per month
Technical Degree – ₹308 per month
Diploma – ₹209 per month
Non-Technical Degree – ₹165 per month
ITI – ₹1,034 per annum
Additionally, merit awards for 10th and 12th toppers at Circle/Region level range from ₹550 to ₹1,100.
Scholarships are subject to eligibility criteria and availability of funds.
Governance and Administration
The Fund is:
Controlled by the Chief Postmaster General (CPMG)
Operated at Circle and Regional levels
Managed by a designated Managing Committee
Subject to annual audit (internal and statutory)
Reviewed periodically by Directorate
Applications are processed quarterly (except immediate death cases), ensuring structured decision-making.
Transparency and Accountability
The scheme mandates:
Annual audit before 30th June each year
Separate savings account for the Fund
Maintenance of proper records
Reporting to Directorate
This ensures financial discipline and transparency.
Conclusion
The revised Circle Welfare Fund for Gramin Dak Sevaks (CWFGDS) is a significant step toward strengthening the welfare ecosystem for rural postal employees. By combining contributory discipline, central assistance, and structured financial relief, the scheme offers social security, dignity, and financial stability to GDS and their families.
It reflects the Department of Posts' commitment to the welfare of its grassroots workforce — the backbone of India’s rural postal network.
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