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New Delhi: There is relief news for government employees. The central government has decided to keep the interest rate on General Provident Fund (GPF) unchanged at 7.1 percent for the July to September 2026 quarter. The Department of Economic Affairs, Ministry of Finance has issued an official notification in this regard. The new rate will be effective from July 1, 2026 to September 30, 2026.

On which funds will 7.1% interest rate be applicable?

According to the Finance Ministry, this interest rate of 7.1 percent will not be limited to General Provident Fund (GPF) only. Its benefits will also be available to account holders of Contributory Provident Fund (CPF), All India Services Provident Fund and other similar provident funds run by the government. With this, employees working in various government departments will continue to get the benefit of interest at the same rate.

What is GPF?

General Provident Fund is a long-term savings scheme created for government employees. In this, employees deposit a part of their salary regularly. On completion of service period or at the time of retirement, employees receive the entire amount along with interest along with the principal amount deposited. This is why GPF is considered an important basis for the financial security of government employees.

Review of interest rates every quarter

The central government reviews the interest rates of GPF and other small savings schemes every quarter. However, this time the government has not made any change in the interest rates for the July-September 2026 quarter. For the same period, the interest rates on small savings schemes like PPF, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme (SCSS) and National Savings Certificate (NSC) have also been maintained as before.

EPF interest rate is different

The interest rate of Employees Provident Fund (EPF) operated for organized private sector employees is different from GPF. At present 8.25 percent interest is being given on EPF. This rate was revised in the financial year 2023-24 and is currently applicable accordingly.

What does this decision mean for the employees?

Keeping the GPF interest rate at 7.1 percent will continue to provide stable returns on long-term savings of government employees. This decision is being considered especially important for those employees whose retirement is near, as the interest has a direct impact on their retirement corpus.