General Provident Fund or GPF is a type of provident fund account, the benefits of which can only be availed by government employees. The rate of GPF interest is revised from time to time according to the notifications issued by the Ministry of Finance. All the government servants that come under the Department of Pension & Pensioners’ Welfare can avail of this scheme and the competitive interest rates.
As per the earlier notification released by The Budget Division of Department of Economic Affairs, under the Ministry of Finance, the fund accumulation at the credit of subscribers of the General Provident Fund (GPF) and other similar funds would provide an interest rate of 7.9% for the period January to March 2020.
However, the Government of India has revised the interest rate on GPF and in this period, it will fetch an interest rate of 7.1% for all the subscribers to the General Provident Fund and other similar funds.
Knowing about the past interest rate of the General Provident Fund will help you to analyze the pattern of revision by the government. If you are a government employee and want to open an account under the GPF scheme, the year-wise list of GPF rates of interest can help you make the decision quickly.
All government employees should be aware of any changes in General Provident Fund Interest Rate as it impacts their money and their future immensely.
Financial Year |
GPF Interest Rate |
2007 - 2008 |
8% |
2008 - 2009 |
8% |
2009 - 2010 |
8% |
2010 - 2011 |
8% |
2011 - 2012 |
|
2012 - 2013 |
8.80% |
2013 - 2014 |
8.70% |
2014 - 2015 |
8.70% |
2015 - 2016 |
8.70% |
2016 - 2017 |
|
2017 - 2018 |
|
2018 - 2019 |
|
2019 - 2020 |
|
2020 - 2021 |
7.10% |
2021 - 2022 |
|
The government levied an interest rate on GPF and similar funds at 7.1% for the current quarter
The interest rate cut rate will not only affect the GPF interest rates but will be applicable to provident funds of central government employees, railways, and defense forces as well. Also, the rate is in line with that of the Public Provident Fund. The list of concerned funds under this rate cut are:
As per the website of The Ministry of Personnel, Public Grievances and Pensions, all temporary government employees after a continuous service of one year, all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government employees are eligible.
The General Provident Fund (Central Services) Rules 1960 applies to all the above-mentioned types of government servants.
As mentioned earlier, General Provident Fund (GPF) is a type of savings instrument for government employees. An employee can contribute a part of his/her savings regularly till the time he/she is employed. On retirement, the employer will credit the total accumulated amount in the GPF account to the employee.
A subscriber shall subscribe monthly to the Fund except during the period when he/she is under any kind of suspension.
Subscription to Provident Fund is stopped 3 months prior to the date of superannuation. GPF interest Rates of subscription shall not be less than 6 per cent of the subscriber’s emoluments and not more than his total emoluments
Government Servants’ Provident Fund Rules were first issued in the year 1954. Since then, to mitigate the problems faced by Government servants in receiving their provident fund claims cleared and to enable fast disposal of claims, various amendments, decisions, and clarifications have been issued in regard to these Rules periodically.
Owing to these changes, the state Government decided to redesign the rules to simplify the procedures and to implement all the changes on GPF interest rates, to make them available in one place for ready reference and use. With these objectives in mind, the new General Provident fund Rules, 1997 were formulated and were made effective from 1st June 1997.