The Ministry of Finance has announced the interest rate for the General Provident Fund (GPF) and other similar provident fund initiatives for October – December 2024 quarter.
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What is the GPF interest rate?
The General Provident Fund and other similar funds shall carry interest at the rate of 7.1% effective from October 1, 2024 to December 30, 2024.
According to the resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on October 3, 2024, “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 October, 2024 to 31th December, 2024. This rate will be in force w.e.f . 1 October, 2024.”
The government has kept the interest rate on GPF and linked funds constant for this quarter of 2024.
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The funds concerned are:
1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (lndia).
3. The All lndia Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The lndian Ordnance Department Provident Fund’
7. The lndian Ordnance Factories Workmen’s Provident Fund.
8. The lndian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.
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What is a General Provident Fund?
General Provident Funds are provident funds offered only to Indian government employees. Everyone in the government is eligible to contribute a portion of their wages to the General Provident Fund. As a result, when the employees retire, they receive the entire money accrued over their service tenure. The finance minister reviews the GPF interest rate every quarter.
EPF interest rate
The EPF interest rate for 2024 is fixed at 8.25%. The EPF interest is calculated monthly on EPF contributions but is only credited into the EPF account on March 31st of the relevant fiscal year.
