New interest rates for provident fund have been fixed for government employees. The government has told that government employees investing in the General Provident Fund are going to get interest at the rate of 7.1 percent in the three months from January to March 2024, i.e. the last quarter of the current financial year.
Finance Ministry issued notification
In a recent notification, the Finance Ministry gave information about the decision on the interest of GPF i.e. General Provident Fund. The notification was issued late Thursday evening. According to the notification, 7.1 percent interest will be given on GPF during the March quarter, which was also 7.1 percent in the December quarter. This means that there has been no change in the interest rates of GPF.
Interest on these provident funds also remains stable
Apart from GPF, other similar provident funds will also get interest at the rate of 7.1 percent in the March quarter. According to the notification, the names of the provident funds on which this decision is applicable are – 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, Defense Services Officers’ Provident Fund and Armed Forces Personal Provident Fund.
What is GPF…
GPF is a type of provident fund, which is available only to government employees. EPF and PPF are equivalent for private sector employees. A fixed part of the salary of a government employee goes to GPF, provided he is not suspended. The employee’s contribution to GPF stops 3 months before superannuation.
Earlier I was getting this much interest
The government notifies GPF interest rates every quarter. There has been no change in the interest rates of GPF since 2020-21. Before that, in the first quarter of the financial year 2019-20, 8 percent interest was being given on GPF, which kept decreasing further. The interest on GPF has been 8 percent most of the time since 2007. Meanwhile, in 2012-13, the highest interest rate on GPF was 8.80 percent.
