A new update has come regarding the interest rates of PF for government employees, this announcement has been made...

The central government has decided to maintain the interest rate on the General Provident Fund (GPF) and other related funds unchanged. According to a notification issued by the Ministry of Finance, the interest rate on GPF will remain at 7.1% for the third quarter of the financial year 2025-26 (October 1 to December 31, 2025). GPF is a mandatory savings scheme for central and state government employees that provides them with financial security after retirement. Only government employees – those in permanent service with the central or state government – can join this scheme.

Employees deposit a fixed portion of their salary (usually a minimum of 6%) into their GPF account every month. The government also pays interest on GPF, which is fixed every quarter. A notification is issued by the Department of Economic Affairs, Ministry of Finance. These rates are generally kept in line with the government's small savings schemes to maintain an interest rate balance.

Which funds are subject to this rate?

This 7.1% interest rate applies not only to the General Provident Fund (GPF), but also to other related funds, including the Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Funds, Defense Services Officers Provident Fund, and General Provident Fund (Defense Services). Like the GPF, the Public Provident Fund (PPF) is also a long-term savings scheme, but it is also available to ordinary citizens. The current interest rate on PPF is 7.1%.

Meanwhile, the Employees' Provident Fund (EPF) is for private sector employees, and its current interest rate is 8.25% (FY 2024-25). Investments in the National Pension System (NPS) are market-linked, so returns are not fixed, but they can provide better returns over the long term.

Small Savings Scheme Interest Rates Unchanged
Recently, the government has not changed the interest rates on small savings schemes for the October-December 2025 quarter. This includes schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (Samriddhi Yojana), Senior Citizen Savings Scheme (SCS), and National Savings Certificate (NSC).

Why is GPF important?
The General Provident Fund (GPF) is a scheme for government employees with a safe and guaranteed return. Deposits are fully protected, and the interest is tax-free. This scheme provides financial assistance to employees in the form of a lump sum upon retirement.

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