Govt employees alert! General Provident Fund interest rate announced for June quarter | How it compares with PPF and EPF
The government has kept the interest rate on general provident fund (GPF) and related funds unchanged at 7.1% for the three months from April-June 2024. The Ministry of Finance revises the interest rate for GPF and related provident funds for government employees every three months. The rate has not been chnaged for the last 17 quarters.
Under GPF, a retirement savings avenue exclusive to government sector employees in the country, a subscriber needs to contribute a minimum 6% of his or her total salary, and the maximum contribution can go up to 100% of the salary.
According to a notification by the Department of Economic Affairs (DEA), Ministry of Finance, dated June 10, 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 funs shall carry interest at the rate of 7.1% w.e.f. 1st April, 2024.”
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Besides GPF, the rate of 7.1% has been kept unchanged for the following funds applicable to various government services and departments for the April-June 2024 period.
Difference between GPF, PPF and EPF
(Source: Paisabazaar)
General Provident Fund (GPF)
The GPF is a savings-cum-retirement scheme run by the central government for employees serving in the government departments. The GPF is applicable for those government employees who joined service before 2004. One can withdraw the GPF amount on retirement or leaving government service prematurely. The subscribers are also allowed to withdraw amount partially after 15 years of service.
Public Provident Fund (PPF)
Public provident Fund (PPF) investment is available for all
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