Savings Schemes
by 5paisa Research Team Last Updated: 2023-04-25T14:47:33+05:30


The General Provident Fund (GPF) is a vital savings instrument for millions of government employees in India. Similar to the Public Provident Fund (PPF), it provides a secure and reliable investment option with the added advantage of easy accessibility. The GPF scheme allows government employees to contribute a portion of their salary to a dedicated GPF account, which can be withdrawn at the time of retirement or in case of financial emergencies. The interest rates on GPF deposits are announced annually by the Ministry of Finance and are a key factor in determining the scheme's popularity among government employees. 

In this blog, we will discuss the latest GPF interest rate and we will also delve into the various eligibility criteria and features associated with the GPF scheme to help you make informed investment decisions.

What Is A General Provident Fund?

The General Provident Fund is a savings and retirement scheme that has been established specifically for government employees in India. Any government employee, regardless of their level or sector, is eligible to benefit from this scheme by contributing a certain amount of their salary on a monthly basis. This program allows employees to save funds and accumulate them over time, earning interest that will provide financial security in their retirement years.

A major benefit of the GPF scheme is its provision of government-backed, secure and risk-free funds. As a result, employees can be confident that their investments are safe and will provide a stable financial foundation in their retirement years. Additionally, the program offers tax deductions under Section 80 of the Income-tax Act, making it an attractive option for employees who want to save for their retirement while also reducing their tax liability.

What Is The Current GPF Interest Rate?

The GPF interest rate in India is an essential factor for government employees who contribute to this scheme for their retirement savings. The Department of Pension and Pensioners' Welfare regularly updates the interest rate to align with current financial conditions. Since its inception in 1968, the Ministry of Finance has revised the interest rates in accordance with the financial needs of the country.

It is worth noting that all government employees, regardless of the sector or level of employment, receive the same interest rate on their GPF contributions. For the financial year 2021-22, the GPF interest rate is set at 7.1%, which is a decrease from the previous financial year's rate of 8%. The reason for the decrease in the interest rate could be attributed to the influence of the COVID-19 pandemic on the nation's economy.

While the interest rate may fluctuate from year to year, the GPF scheme remains a safe and reliable option for government employees to save for their retirement. It is important for employees to stay informed about the current GPF interest rate and make informed decisions regarding their contributions.

GPF Interest Rate Year-Wise List

Below is the GPF interest rate year-wise list for the past 15 years. This comprehensive table will help government employees to stay informed about the interest rates and their revision patterns. It is crucial to be aware of these changes, as the GPF scheme is a vital savings plus retirement scheme for government employees. The table showcases the interest rates for each financial year, starting from 2007-2008 to the current financial year of 2021-2022.

Financial Year

GPF Interest Rate

2007 - 2008


2008 - 2009


2009 - 2010


2010 - 2011


2011 - 2012

8% (November 2011 - 8.6% from November 2011 - March 2012)

2012 - 2013


2013 - 2014


2014 - 2015


2015 - 2016


2016 - 2017

8.1% (September 2016 - 8% from September 2016 - March 2017)

2017 - 2018

7.9% (April 2017 - June 2017), 7.8% (July 2017 - September 2017), 7.8% (September 2017 - December 2017), 7.6% (January 2018 - March 2018)

2018 - 2019

7.6% (April 2018 - September 2018), 8% (October 2018 - March 2019)

2019 - 2020

8% (April 2019 - June 2019), 7.9% (July 2019 - March 2020)

2020 - 2021


2021 - 2022

7.1% (1st July 2022 to 30th September 2022, 1st April 2022 to 30th June 2022, 1st January 2022 to 31st March 2022)


7.1% (April-June 2023)


How Does GPF Work?

The GPF scheme allows the employee to contribute a portion of their salary every month towards the GPF account until the time of retirement. Upon retirement, the accumulated amount in the GPF account is transferred to the employee by their employer.

One of the benefits of the GPF scheme is that it allows for flexibility in terms of the amount an employee can contribute. The minimum deposit amount that can be made towards the GPF account is 6% of the subscriber's salary, while the maximum deposit amount can be 100% of the subscriber's salary. This feature of the scheme makes it accessible to employees of all income levels.

The GPF subscription is considered valid under the condition that the member contributes to the fund monthly, except during a period of suspension. This means that the GPF scheme is a long-term savings instrument that requires regular and consistent contributions from the subscriber.

Key Features Of GPF

Administered by the Department of Pension and Pensioner’s Welfare, which operates under the Ministry of Personnel, Public Grievances and Pensions, GPF provides numerous advantages to its members. Below are some essential features of GPF:

●    Membership

According to the, a government worker can enrol as a GPF member by contributing a specific proportion of their salary to the scheme.2

●    GPF Interest Rate

GPF interest rate is 7.1% at present, which is reviewed and revised from time to time.

●    Monthly Subscription

GPF requires its users to pay a monthly membership fee, with the exception of the time period during which the subscriber is suspended. According to the information that can be found on, contributions to the GPF are terminated three months before the date of retirement.

●    Final Balance

When joining the fund, a member must complete a prescribed form to nominate a family member. This nomination provides one or more individuals with the entitlement to receive the accumulated credit in the fund in case of the member's death.

●    Death Benefits

The GPF regulations specify that the individual entitled to receive the accumulated credit in a subscriber's account following their death will also be granted an additional amount equal to the average balance in the account during the three years prior to the subscriber's demise, provided that certain conditions stipulated in the relevant rule are met. The maximum amount payable under this rule is Rs 60,000. Moreover, in order to be eligible for this benefit, the subscriber must have completed a minimum of five years of service at the time of their death. This provision is in place to ensure that long-serving subscribers and their nominees receive adequate financial support during difficult times.

Eligibility For GPF

To be eligible to subscribe to the General Provident Fund, a government employee must be an Indian citizen. Temporary government employees, including apprentices and probationers, become eligible to subscribe to the GPF fund after providing one year of continuous service in the public sector. However, private sector employees are not eligible for the GPF Provident Fund.

As per the Ministry of Personnel, Public Grievances and Pensions website, the GPF Fund's Central Services Rules 1960 applies to all types of government servants, including re-employed pensioners (excluding those eligible for admission to the Contributory Provident Fund) and permanent government employees. Moreover, government employees are required to deposit a certain percentage of their salary to subscribe to the GPF Provident Fund. Therefore, if a government employee meets the above eligibility criteria, they can avail of the benefits of the GPF Fund.

GPF Nomination

GPF Nomination is a process by which a government servant who is a member of the GPF can specify a nominee for his/her GPF account. The purpose of nomination is to ensure that in case of the member's demise, the accumulated credit in the GPF account is transferred to the nominee(s) without any hassle.

According to the GPF rules, the nominee must be a family member of the member, if he/she has a family. However, if the member does not have a family, he/she can nominate any other person as the nominee. It is also important to note that the nomination for a minor can only be made on his/her attaining the age of majority.

In cases where a member has more than one nominee, he/she must specify the share of each nominee. This ensures that the transfer of the accumulated credit is done as per the member's wishes and in accordance with the rules and regulations of the GPF.

List Of Funds On Which The New Rate Will Be Applicable

The recent cut in interest rates for the General Provident Fund will not only affect GPF subscribers but also those who have invested in various other provident funds of central government employees, railways, and defence forces. The new interest rate is in line with that of the Public Provident Fund (PPF), and it will be applicable to the following funds:

1.    The Contributory Fund (India)
2.    The All India Services Provident Fund
3.    The State Railway Provident Fund
4.    The Defense Services Officers Provident Fund
5.    The Armed Forces Personnel Provident Fund
6.    The General Provident Fund (Defense Services)
7.    The General Provident Fund (Central Services)
8.    The Indian Naval Dockyard Workmen’s Provident Fund
9.    The Indian Ordnance Department Provident Fund
10.    The Indian Ordnance Factories Workmen’s Provident Fund


The General Provident Fund is an essential retirement benefit for government employees in India. Understanding the eligibility criteria and nomination rules can help employees make the most of this fund. It is also important to stay informed about any changes in the interest rates that may affect the GPF and other provident funds. By being aware of these important details and making informed decisions, government employees can secure a better future for themselves and their families.

Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Frequently Asked Questions

The current GPF interest rate for Q1, 2023-24 (April-June 2023) is 7.1%. The interest rate on GPF is set every quarter by the Ministry of Finance, and it can vary from quarter to quarter based on various economic factors.

GPF interest rates are revised periodically by the government. The frequency of revision may vary depending on government policies.

Yes, there is a minimum investment amount required for GPF, which varies based on the policies of the government or organisation. Generally, the minimum investment amount is 6% of the basic salary.

Yes, there are tax benefits associated with investing in GPF. Contributions made towards GPF are eligible for a tax deduction under Section 80C of the Income Tax Act. Additionally, the interest earned on the GPF amount is tax-free.