The Central Government has announced that the interest rate on General Provident Fund (GPF) and other related funds will remain unchanged. According to a notification issued by the Ministry of Finance, the GPF interest rate will continue to be 7. 1% for the third quarter of the financial year 2025-26, spanning from October 1 to December 31, 2025. This decision ensures continuity for government employees, with no alteration in the returns on their provident fund investments for the upcoming quarter. This stability aligns with the government's broader strategy for small savings schemes.Understanding GPF and its Eligibility
The General Provident Fund is a. Compulsory savings scheme designed specifically for central and state government employees. Its primary objective is to provide financial security to these employees post-retirement. Eligibility is restricted to permanent government employees working either in the central or state government, while employees are required to contribute a fixed portion of their salary (typically a minimum of 6%) to their GPF account each month. The government determines the GPF interest rate quarterly, which is officially. Notified by the Department of Economic Affairs under the Ministry of Finance. These rates are generally kept in line with the interest rates of other government small savings schemes to maintain a balance.
Related Funds and Comparison with Other Schemes
The 7. 1% interest rate isn't solely applicable to GPF but also extends to several other associated funds, while these include the Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, Defence Services Officers Provident Fund, and General Provident Fund (Defence Service). For comparison, the Public Provident Fund (PPF), which is accessible to all citizens, also currently offers an interest rate of 7. 1%. In contrast, the Employees' Provident Fund (EPF) for private sector employees has a higher interest rate of 8, while 25% for FY 2024-25. The National Pension System (NPS), being market-linked, offers variable returns that aren't fixed but can yield better returns over the long term.
Small Savings Scheme Rates Unchanged
In a related development, the government recently confirmed that the interest rates for various small savings schemes, including PPF, Sukanya Samriddhi Yojana, Senior Citizens' Savings Scheme, and National Savings Certificates, will also remain unchanged for the October-December 2025 quarter. GPF remains a crucial, secure, and guaranteed return scheme for government employees, offering tax-free interest and a lump-sum amount upon retirement.
