Central government holds GPF interest rate steady at 7.1%
What's the story
The Indian government has announced that the interest rate for the General Provident Fund (GPF) and other related provident fund schemes will remain unchanged at 7.1% for the July-September quarter of 2025. The decision was confirmed by a notification from the Department of Economic Affairs (DEA) on July 2, 2025. The revised interest rate will be applicable from July 1 to September 30, covering various funds maintained by different government departments for their employees.
Fund coverage
Funds covered under the 7.1% interest rate
The 7.1% interest rate will be applicable to a number of funds, including the General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, and State Railway Provident Fund. The General Provident Fund (Defense 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 Personnel Provident Fund will also offer 7.1% interest rate.
Rate review
Ministry of Finance reviews the GPF interest rate every quarter
The Ministry of Finance reviews the GPF interest rate every quarter. The current rate is unchanged from the previous quarter. The final amount, including interest, is paid to employees on retirement, offering financial support in the post-service period. Although the GPF interest rate matches that of the Public Provident Fund (PPF) at 7.1%, there are some key differences between them.
Scheme comparison
EPF vs PPF vs GPF: What are the differences
PPF is open to all Indian citizens, including the self-employed, with a lock-in period of 15 years. On the other hand, GPF is exclusive to government employees and allows full withdrawal at retirement. Another popular scheme, Employees's Provident Fund (EPF), caters mainly to private sector salaried employees. Its interest rate is reviewed annually by the Employees's Provident Fund Organisation (EPFO).