The Central Government has declared that the interest rate for the General Provident Fund (GPF) remains steady at 7.1% for the period from October 1st to December 31st, 2023.
GPF, a social security initiative available to central government workers, allows employees to become members by contributing a portion of their salary.
Minimum 6% Contribution Required for GPF
Under GPF, only employees make contributions, with no government input. The government provides interest on these contributions, but employees must contribute a minimum of 6% of their total salary.
The maximum contribution can equal 100% of the employee’s salary. The GPF account matures at retirement, and it offers the option of taking loans.
Additionally, it serves as a tax-saving scheme, providing taxpayers with exemptions under Section 80C of the Income Tax Act.
The Department of Pension and Pensioners’ Welfare, under the Ministry of Personnel, Public Grievances, and Pensions, oversees GPF management.
PPF Interest Rate Remains Unchanged
In other news, the government has maintained the interest rate for the Public Provident Fund (PPF) at its current level.
While the government recently adjusted the interest rate for the five-year recurring deposit (RD) scheme in small savings schemes for the October quarter, increasing it from 6.5% to 6.7%, there have been no changes in interest rates for other small savings schemes, including PPF. The interest rate for PPF remains at 7.1%.