General Provident Fund Interest Rate: The central government has not made any changes to the interest rate on the General Provident Fund and other related funds.
According to a notification issued by the Finance Ministry, the interest rate on GPF will remain at 7.1% for the third quarter of the financial year 2025-26 (October 1 to December 31, 2025). This means that government employees will receive the same interest rate for this quarter as before.
What is GPF and who is eligible for it?
The GPF is a mandatory savings scheme for permanent employees of central and state governments. The scheme aims to provide financial security to government employees after retirement. Employees deposit a fixed portion of their monthly salary (usually at least 6%) into their GPF account. The government provides a fixed interest rate on these deposits at a quarterly rate. This scheme is completely safe and guaranteed by the government.
How are interest rates reviewed?
GPF interest rates are reviewed every three months (quarterly) through a notification issued by the Department of Economic Affairs, Ministry of Finance. Generally, GPF interest rates are aligned with those of the government’s small savings schemes to maintain a balanced interest rate.
Which funds will be eligible for this 7.1% interest rate?
The Finance Ministry has clarified that this interest rate will be applicable not only on GPF but also on other related Government Provident Fund schemes, such as –
– Contributory Provident Fund (India)
– All India Services Provident Fund
– State Railway Provident Fund
– Defence Services Officers Provident Fund
– General Provident Fund (Defence Services)
The annual interest rate of 7.1% will also be applicable on all these schemes.
