 "Provident fund, PF")
The government has maintained the interest rate on the General Provident Fund (GPF) at 7.1 per cent for the April-June quarter of FY25. It is the 17th consecutive quarter where the interest rate has remained unchanged. The Finance Ministry revises the interest rate for GPF and related provident funds for government employees every three months.
According to a notification by the ministry’s Department of Economic Affairs (DEA), dated June 10: “It is announced general information that during the year 2024-2025, 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 w.e.f. 1st April, 2024.”
What is General Provident Fund
The GPF is a long-term investment option that allows government employees to accumulate savings over their employment tenure. The total amount that is accumulated throughout the employment term is paid to the employee at the time of retirement.
In addition to the GPF, the interest rate of 7.1 per cent will remain unchanged for the following funds applicable to various government services and departments for the April-June 2024 period.
General Provident Fund (Central Services).
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.
The Defence Services Officers Provident Fund.
The Armed Forces Personnel Provident Fund.
Eligibility criteria for GPF account
Open to central government employees and specific state government employees.
Employees must not have opted for any other government or organisational provident fund scheme.
Temporary employees with one year of continuous service are eligible for GPF.
Government employees re-employed after retirement.
Employees working in private sector companies are not eligible for GPF.
How to Open a GPF Account?
Contact your department's Drawing and Disbursing Officer (DDO).
Obtain the "Account opening form".
Provide details like name, designation, date of joining, and chosen contribution percentage.
DDO verifies the form and forwards it to the Accountant General's office (AG) along with relevant documents.
You will receive your GPF account number and account information.
Your chosen contribution percentage will be automatically deducted from your salary each month and credited to your GPF account.
Maturity and withdrawal process of GPF
The GPF account matures when the government employee retires or reaches the superannuation age (the age specified for retirement).
Employees are eligible to withdraw their GPF funds for various purposes after completing ten years of service or if they have ten years left until their superannuation date. This applies if the employee has continuously worked in government service.
If an employee resigns from government service at any point, they can withdraw their GPF balance regardless of the duration of their service tenure.
After the account matures, the employee can choose to withdraw the entire balance in the GPF account.
Alternatively, the employee can opt to receive the accumulated amount as a monthly pension.
If an employee dies, the balance in the GPF account is paid to the nominee or legal heir designated by the employee.
