GPF Interest Rate

Specially designed for Government employees in India, General Provident Fund or GPF works in a similar pattern as Public Provident Fund (PPF). Government employees under the GPF scheme are allowed to contribute a portion of their salary in their General Provident Fund account regularly that can be en-cashed at the time of retirement.

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What Is a General Provident Fund?

GPF is a government scheme especially launched for the government employees of India. All employees directly working under the government of India are eligible to avail of the GPF benefits. As per the basic guidelines, the following individuals are eligible for the GPF scheme:

  • Temporary government servants worked for a minimum period of 1 year or more.

  • Re-employed pensioners (except individuals eligible for CPF, that is, Contributory Provident Fund).

  • Permanent government servants.

What is GPF Interest Rate?

The Department of Pension & Pensioners’ Welfare under the Government of India regulates the General Provident Fund interest rates. The current GPF interest rate for the financial year 2021-2022 is 7.1% for all GPF subscribers and subscribers of similar other funds.

The GPF interest rates are regularly updated as per the release by the Ministry of Finance. All government employees are eligible for the same interest rate.

GPF Interest Rate List for the Last 15 Years

As we know that the Ministry of Finance updates the GPF Interest rates from time to time, here is the year-wise list for the change in GPF rates for the past 15 years for a better understanding and decision-making.

Financial Year GPF Interest Rate
2007 - 2008 8%
2008 - 2009 8%
2009 - 2010 8%
2010 - 2011 8%
2011 - 2012 8% till November 2011
8.6% from November 2011 till March 2012
2012 - 2013 8.80%
2013 - 2014 8.70%
2014 - 2015 8.70%
2015 - 2016 8.70%
2016 - 2017 8.1% till September 2016
8% from September 2016 till March 2017
2017 - 2018 7.9% from April 2017 till June 2017
7.8% from July 2017 till September 2017
7.8% from September 2017 till December 2017
7.6% from January 2018 till March 2018
2018 - 2019 7.6% from April 2018 till September 2018
8% from October 2018 till March 2019
2019 - 2020 8% from April 2019 till June 2019
7.9% from July 2019 till March 2020
2020 - 2021 7.10%
2021 - 2022 7.10%

How Does GPF Work?

General Provident Fund is a savings instrument for government employees in India in which the individual can contribute regularly till they are government employees. The total deposited amount at an interest rate of 7.1% (current Rate of Interest) will be credited to the account of the depositor at the time of retirement. The limit of deposition in a GPF account is as follows:

  • The minimum limit is 6% of the employee’s salary

  • The maximum limit is 100% of the employee’s salary

Key Features of GPF

Following are some highlights under the General Provident Fund scheme for government employees:

  • The current GPF Interest rate is 7.1%

  • The Department of Pension & Pensioners’ Welfare under the Government of India regulates the General Provident Fund

  • A monthly subscription is necessary for GPF barring the subscribers under suspension

  • Subscriptions are stopped prior to 3 months of the date of superannuation

  • Immediate payments to be made at the time of retirement

  • Nomination can be made to 1 or more people only at the time of joining the GPF. The total balance is credited to the nominee/nominees at the time of the uncertain demise of the GPF account holder.

  • Interest returns and contributions made under the GPF account are exempted from tax deductions under Section 80C of the Income Tax Act, 1961.

Eligibility Conditions

Following is the eligibility criteria under the GPF scheme:

  • Permanent government servants

  • Temporary government servants with a minimum of 1 year of government service

  • Re-employed pensioners (except individuals eligible for CPF, that is, Contributory Provident Fund)

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