Before the Dearness Allowance (DA) and Dearness Relief (DR) of central employees, the government has taken an important decision on the General Provident Fund (GPF).The government has retained the interest rate at 7.1 per cent for the fourth quarter of the current financial year. Earlier, in the quarter ended December 31, the interest rate on GPF was 7.1 percent.
According to the information given by the Finance Ministry, this rate is valid from January 1, 2023 to March 31, 2023.This rate is effective from January 1, 2023.
What is GPF: Government employees are eligible in the General Provident Fund ie GPF. Under this, employees are allowed to contribute a certain percentage of their salary to GPF. Whereas, the total amount accumulated during the employment period will be paid to the employees at the time of their retirement. The contribution made to GPF is also exempt under section 80C of income tax.
Explain that the government revises the interest rate on GPF every quarter. This interest rate is also applicable to All India Services Provident Fund, Armed Forces Personnel Provident Fund, State Railway Provident Fund and other government-run provident funds.
When to decide on allowance: The central government can take a decision on dearness allowance or dearness relief of its employees in March. This decision will be effective from 1 January 2023.It is estimated that the government may increase the interest rate by up to 4 per cent for the first half.
