Provident Fund: Central Government Employees contributing to the General Provident Fund (GPF) will get 7.1 percent interest in the first quarter of the financial year 2023-24. The Finance Ministry has given this information by issuing a notification.
The Finance Ministry said that 7.1 percent interest will be available on GPF contribution in the first quarter from April 1, 2024 to June 30, 2024 on other such funds including GPF.
7.1 percent interest on GPF
The Department of Economic Affairs, Ministry of Finance said, it is informed that during the financial year 2024-25, 7.1 percent interest will be given on the total contribution of subscribers to the General Provident Fund and other funds from 1 April 2024 to 30 June 2024. This rate will be valid from April 1, 2024. The interest rate on GPF has remained at this level continuously.
Interest rates applicable on these funds
The Finance Ministry said that the funds linked to this include 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 Personal Provident Fund.
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Who can contribute to GPF
General Provident Fund is a provident fund offered only to the employees of the Government of India. Every government employee can contribute a part of his salary to the General Provident Fund. When an employee retires, the money deposited in his General Provident Fund account is given along with interest. Every quarter of the financial year, the Finance Ministry reviews the interest rates of the General Provident Fund, just like the interest rates of small savings schemes are reviewed.
Difference between GPF and EPF
While the General Provident Fund is for government employees, the Employee Provident Fund (EPF) is a scheme run by the EPFO for the provident fund of private sector employees. Employees of the organized sector contribute their salary to EPF. While the central government is giving 7.1 percent interest on GPF, it has been announced to give 8.25 percent interest on EPF during 2023-24.
