Eligibility for GPF includes government servants and re-employed pensioners; Interest rate for GPF and similar funds set at 7.1% from April to June 2024.
In a recent announcement, the Ministry of Finance has disclosed the interest rate applicable to the GPF and similar provident fund schemes for the period of April to June 2024.
There are various types of provident funds that cater to distinct industries and objectives. Among the prominent ones are the General Provident Fund (GPF), Employee Provident Fund (EPF), and Public Provident Fund (PPF).
GPF primarily serves government personnel, while EPF is tailored for private sector workers, and PPF is accessible to individuals from any profession.
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Official statement
According to the resolution released by the DEA, Ministry of Finance, the interest rate for the fiscal year 2024-2025 has been affirmed. Accumulations credited to subscribers of the General Provident Fund and other similar funds will carry an interest rate of 7.1% from April 1, 2024, to June 30, 2024.
The resolution explicitly states, “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% (Seven point one percent) w.e.f . 1 April, 2024 to 30 June 2024. This rate will be in force w.e.f . 1 April 2024.”
This decision was confirmed through a resolution issued by the Department of Economic Affairs (DEA), Ministry of Finance, on June 10, 2024.
Highlighted provident funds
The interest rate announcement encompasses several significant provident funds, ensuring uniformity and transparency across various sectors and services. The funds covered include:
- The General Provident Fund (Central Services)
- The Contributory Provident Fund (India)
- The All India Services Provident Fund
- The State Railway Provident Fund
- The General Provident Fund (Defence Services)
- The Indian Ordnance Department Provident Fund
- The Indian Ordnance Factories Workmen’s Provident Fund
- The Indian Naval Dockyard Workmen’s Provident Fund
- The Defence Services Officers Provident Fund
- The Armed Forces Personnel Provident Fund
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Here are the interest rates for the GPF over the past 15 years:
| 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% |
EPFO members enjoy higher returns
In contrast to the General Provident Fund, members of the Employees’ Provident Fund Organization (EPFO) benefit from a more lucrative interest rate of 8.25% on their deposits.
PPF holds steady since April-June 2020
The public provident fund has maintained its interest rate at 7.1% since April-June 2020, following a reduction from 7.9%, providing stability to investors amidst economic fluctuations.
What defines a general provident fund?
The GPF is an account exclusive to government employees in India. Employees contribute a portion of their salary, accruing funds over their tenure. Upon retirement, the accumulated amount is disbursed. Interest rates are periodically adjusted by the government.
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What are the eligibility criteria for the general provident fund?
Eligibility for the General Provident Fund, according to The Ministry of Personnel, Public Grievances and Pensions website, includes various categories: Firstly, temporary government employees become eligible after completing a continuous year of service.
Secondly, re-employed pensioners, excluding those eligible for the Contributory Provident Fund, are eligible. Finally, permanent government employees are also eligible. It’s important to note that the General Provident Fund (Central Services) Rules 1960 apply to all aforementioned government servant categories.
