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 this scheme and competitive GPF interest rates.

GPF Interest Rate is on an annual basis and ranges between 8% – 9%. It depends upon whether you are a subscriber for more than 12 months or less than 12 months, if you are a monthly subscriber then GPF interest will depend on your tenure in years while GPF interest rate for quarterly subscribers will depend on their duration in quarters. There are a number of GPF interest rate methods through which subscribers will receive GPF interest rates.

GPF, or General Provident Fund, is a form of provident fund account that is solely available to government employees. The GPF interest rate is adjusted on a regular basis in accordance with announcements made by the Ministry of Finance. This scheme, as well as the favorable interest rates, are available to all government employees who work for the Department of Pensions and Pensioners’ Welfare.

What is the Current GPF interest rate?

According to a previous statement issued by the Ministry of Finance’s Budget Division, fund accumulation at the credit of subscribers of the General Provident Fund (GPF) and other similar funds will give an interest rate of 7.9% for the period January to March 2020.

However, for the financial year 2020-21, the Government of India has revised the interest rate on GPF once more, this time for the period 1 April 2020 to 30 June 2020. (April-March). During this time, all subscribers to the General Provident Fund and other comparable funds will get a 7.1 percent interest rate.

GPF Interest Rate Year-wise List

Knowing the previous interest rate of the General Provident Fund will aid you in analyzing the government’s revision pattern. If you work for the government and want to open a GPF account, the year-by-year list of GPF rates of interest can help you make a quick decision. All government employees should be aware of any changes in the General Provident Fund Interest Rate because it has a significant impact on their money and future.

YearRate of Interest
1986-87 to 1999-200012.00%
2003-04 to 2010-118.00%
01-04-2011 to 30-11-20118.00%
01-12-2011 to 31-03-20128.60%
2013-14 to 2015-168.70%
01.04.2016 to 30.06.20168.10%
01.07.2016 to 30.09.20168.10%
01.10.2016 to 31.12.20168.00%
01.01.2017 to 31.03.20178.00%
01.04.2017 to 30.06.20177.90%
01.07.2017 to 31.12.20177.80%
01.01.2018 to 31.03.20187.60%
01.4.2018 to 30.06.20187.60%
01.07.2018 to 30.09.20187.60%
01.10.2018 to 31.12.20188.00%
01.01.2019 to 31.03.20198.00%
01.04.2019 to 30.06.20198.00%
01.07.2019 to 30.09.20197.90%
01.10.2019 to 31.12.20197.90%
01.01.2020 to 31.03.20207.90%
01.04.2020 to 30.06.20207.10%
  • For the April-June quarter of FY 20-21, the government set the interest rate on GPF and equivalent funds at 7.1 percent.
  • The new rate was set at 7.1 percent, effective from April 1 to June 30 of FY21, according to a notification issued by the finance ministry on March 31, 2020.
  • The GPF interest rate was 7.9% in the preceding quarter, from January to March.
  • This is in accordance with the reduction on the Public Provident Fund or PPF rates under small savings plans, according to government authorities.

List of funds on which the new rate will be applicable

The interest rate drop will affect not only GPF interest rates, but also central government employees’ provident funds, railways, and armed forces’ provident funds. Furthermore, the rate is comparable to that of the Public Provident Fund. The following funds are among those affected by the rate cut:

  1. The General Provident Fund (GPF) is a government-run pension fund (Central Services)
  2. The All India Services Provident Fund
  3. The State Railway Provident Fund
  4. The Contributory Fund (India)
  5. The General Provident Fund (GPF) is the fifth type of pension fund (Defense Services)
  6. The Provident Fund of the Indian Ordnance Department
  7. The Indian Ordnance Factories Workmen’s Provident Fund (Indian Ordnance Factories Workmen’s Provident Fund) (Indian Ordnance Facto
  8. The Indian Naval Dockyard Workmen’s Provident Fund (Indian Naval Dockyard Workmen’s Provident Fund) (Indian Naval Dockyard Workmen’
  9. The Defense Services Officers Provident Fund (DSOPF) is number nine.
  10. The Armed Forces Personnel Provident Fund

Who is eligible for the General Provident Fund?

All temporary government employees after one year of continuous service, all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund), and all permanent government employees are eligible, according to the Ministry of Personnel, Public Grievances and Pensions’ website. All of the above-mentioned sorts of government employees are covered by the General Provident Fund (Central Services) Rules 1960.

How does GPF work?

As previously stated, the General Provident Fund (GPF) is a form of savings account available to government employees. An employee can contribute a portion of his or her savings on a regular basis for as long as he or she is employed. When the employee retires, the employer will credit the employee’s GPF account with the whole amount accumulated.

GPF Deposit Limit

  • The minimum deposit amount is 6% of the subscriber’s annual wage.
  • The maximum amount that can be deposited is 100 percent of the subscriber’s pay.

GPF subscription validity

A subscriber must make a monthly contribution to the Fund unless he or she is suspended for any reason.

When does the subscription end?

Subscriptions to the Provident Fund are halted three months before the superannuation date. Subscription rates for the GPF must be no less than 6% of the subscriber’s emoluments and no more than his entire emoluments.

GPF Rules

The Government Employees’ Provident Fund Rules were originally published in 1954. Since then, several revisions, rulings, and clarifications have been published in reference to these Rules on a regular basis to alleviate the challenges that Government employees have in getting their provident fund claims processed and to allow for faster claim processing.

As a result of these changes, the state government decided to rewrite the rules to make them easier to follow and to apply all of the changes to the GPF interest rates in one location for easy reference and use. The revised General Provident Fund Rules, 1997, were drafted with these goals in mind and went into effect on June 1, 1997.

Read, also: General Provident Fund- GPF Rules
What is the difference between BSE and NSE?