The central government employees would continue to receive 7.1 per cent interest on their provident fund contributions between October and December of 2022.
The interest rate for General Provident Fund, Contributory Provident Fund, All India Services Provident Fund and other similar funds for government employees continues to remain at over a four-decade low. The Department of Economic Affairs under the Ministry of Finance released the latest rate for the current quarter and there is no change in the interest rate as it continues to be 7.1 per cent as in 2021. The interest rates, thus, continue to be the lowest since 1974-75 when it was 7.17 per cent. The interest rate was highest between 1986 and 2000 when it was 12 per cent.
In a notification issued on October 3, the DEA said, “It is announced for general information that during the year 2022-2023, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st October, 2022 to 31st December, 2022. This rate will be in force w.e.f. 1st October, 2022.”
Thus, the central government employees would continue to receive 7.1 per cent interest on their provident fund contributions between October and December of 2022.
According to the DEA, there are 10 funds that will attract the 7.1 per cent rate and these are 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, Defence Services Officers Provident Fund and Armed Forces Personnel Provident.
The interest rate for these funds was lowest during the initial years of 1964-65 when it was around 4 per cent.
General Provident Fund is a provident fund for central government employees. All the government employees under the Department of Pension & Pensioners’ Welfare get the benefit of these schemes.
