GPF Interest Rate for 2025

The current General Provident Fund (GPF) interest rate is 7.1% for the period of 2025-2026. This interest rate is applicable to all subscribers of the General Provident Fund as well as several similar funds for government employees. While the GPF interest rate is revised periodically by the government, it remains a secure and reliable savings scheme for government employees, offering them a stable and attractive return on their investments. 

The interest rate cut that affects the General Provident Fund (GPF) will also impact various other provident funds associated with central government employees, railways, and the defence forces. This adjustment aligns the rates with that of the Public Provident Fund (PPF). The following funds will be subject to the new interest rate: 

1. The General Provident Fund (Central Services) 

1. The Contributory Fund (India) 

1. The All India Services Provident Fund 

1. The State Railway Provident Fund 

1. The General Provident Fund (Defense Services) 

1. The Indian Ordnance Department Provident Fund 

1. The Indian Ordnance Factories Workmen’s Provident Fund 

1. The Indian Naval Dockyard Workmen’s Provident Fund 

1. The Defense Services Officers Provident Fund 

1. The Armed Forces Personnel Provident Fund 

GPF Interest Rates 

This table illustrates the annual GPF interest rates set by the government for each fiscal year, and how they have evolved over the years. 

How Does the General Provident Fund (GPF) Work? 

The General Provident Fund (GPF) is a long-term savings instrument specifically designed for government employees in India. It allows employees to contribute a part of their salary each month towards the fund, which grows over time with interest. The fund is managed by the government, providing employees with a secure and regulated means of saving for their retirement. 

Here is it how it works: 

1. Monthly Contributions: Employees contribute a fixed percentage of their salary each month to their GPF account. This amount is deducted automatically from the employee's salary. The contribution can range from 6% to 100% of the employee’s salary, depending on their preference. The government also contributes to the fund, though the contribution by the employee is the primary source of the balance. 
2. Interest Accumulation: The contributions earn interest, which is credited annually. The rate of interest is fixed by the government and is subject to periodic revision. Interest is calculated on the balance at the end of each month and compounded yearly. 
3. Deposit Limits: 

• Minimum Contribution: A minimum of 6% of the subscriber's salary must be contributed to the fund each month. 
• Maximum Contribution: Employees can contribute up to 100% of their salary, providing flexibility to increase their savings. 
  

1. Subscription Period: 

• The subscription to the GPF is made monthly by the employee, except in cases where the employee is under suspension or is unable to make contributions due to other specified conditions. 
• Employees must continue contributing until three months prior to their retirement or superannuation, at which point the subscription is halted. 

1. Final Settlement: 

• Upon retirement, resignation, or death, the accumulated amount in the GPF account is paid out to the employee or their nominees. This includes the total contributions made by the employee, along with the interest earned during the subscription period. 

1. No Less Than 6%: 

• The minimum contribution by the employee cannot be less than 6% of their salary, ensuring that the employee saves a significant portion of their earnings. The maximum is capped at 100% of the salary, giving employees flexibility depending on their financial goals.