The government has announced a dramatic increase in interest rates on the General Provident Fund (GPF) and other similar provident funds for the quarter from October to December 2025. GPF will now earn a robust 7.1% interest rate, which is exactly equal to the Public Provident Fund (PPF) interest rate. This decision provides strong financial security to government employees.
What is the General Provident Fund (GPF)
The General Provident Fund (GPF) is a special type of provident fund available only to employees of the Central Government of India. Anyone employed in the government can contribute a certain portion of their salary to the GPF.
When an employee retires, they receive the entire amount accumulated during retirement and the interest accumulated on it in one lump sum. This fund is the biggest source of financial security for government employees in old age.
7.1% interest on GPF from October to December
The Department of Economic Affairs (DEA) of the Ministry of Finance has clarified that the interest rate of 7.1% on the General Provident Fund and other similar provident funds will continue to be charged for the period from October 1 to December 31, 2025. The government has not made any changes to these interest rates, maintaining stability.
The interest rates on GPF are the same as those on the Public Provident Fund (PPF). This means that central government employees will continue to receive a guaranteed return of 7.1% on their retirement savings, free from market risk.
7.1% interest on these funds as well
This 7.1% interest rate applies not only to the GPF, but also to several other provident funds. These funds include the Contributory Provident Fund, the All India Services Provident Fund, the State Railway Provident Fund, the Indian Ordnance Department Provident Fund, and several other government funds.
Quarterly Review
The Ministry of Finance reviews the GPF interest rate every quarter and announces the interest rate for the new quarter. The stable rate of 7.1% is a testament to the government’s commitment to strengthening the retirement savings of its employees.