The Ministry of Finance has announced that the interest rate for the General Provident Fund (GPF) will remain unchanged at 7.1% for the October-December quarter of FY24. This decision reflects the government’s commitment to providing a stable and reliable investment option for central government employees.
GPF is a crucial social security scheme exclusively available to central government employees. Under this scheme, employees can voluntarily contribute a portion of their salary to their GPF account. The accumulated amount, along with the earned interest, becomes accessible to the employee upon retirement.
The government reviews and adjusts the GPF interest rate every quarter to align with prevailing economic conditions and market dynamics. For the preceding July-September quarter, the interest rate was also set at 7.1%.
The Department of Economic Affairs (DEA), Ministry of Finance, issued a notification on July 4, 2023, stating, “It is announced for general information that during the year 2023-2024, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1 per cent (Seven points one percent) w.e.f. 1st July, 2023.”
It’s important to note that the 7.1% interest rate applies not only to the General Provident Fund but also to various other similar provident funds, including the Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defence Services), Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen’s Provident Fund, Indian Naval Dockyard Workmen’s Provident Fund, Defence Services Officers Provident Fund, and Armed Forces Personnel Provident Fund.
This decision to maintain the GPF interest rate ensures that central government employees continue to benefit from a secure and attractive investment avenue, supporting their financial stability and long-term savings goals.
