The Ministry of Finance has announced the General Provident Fund (GPF) interest rate for the July to September 2025 quarter, and it remains unchanged at 7.1%. But what does that really mean for you—and who exactly does it apply to?
What’s the GPF Interest Rate for This Quarter?
The interest rate for GPF and similar government-managed funds will continue at 7.1% per annum for the July–September 2025 quarter. This rate is effective from July 1 to September 30, 2025, according to the Ministry of Finance’s notification released on July 2.
Here’s what’s confirmed:
“Accumulations of the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% w.e.f. July 1, 2025,” — Department of Economic Affairs (DEA), Ministry of Finance.
This rate is reviewed every quarter and was not increased or reduced this time.
Who Does GPF Apply To?
The following central government-managed provident funds will offer the 7.1% interest rate for this quarter:
| Fund Name | Applicable To |
|---|---|
| General Provident Fund (Central Services) | All central government civil employees |
| Contributory Provident Fund (India) | Employees contributing under CPF |
| All India Services Provident Fund | IAS, IPS, IFS officers |
| State Railway Provident Fund | Indian Railways employees |
| General Provident Fund (Defence Services) | Defence civilian employees |
| Indian Ordnance Department Provident Fund | Civilian employees under Ordnance Services |
| Indian Ordnance Factories Workmen’s Provident Fund | Industrial workmen in ordnance factories |
| Indian Naval Dockyard Workmen’s Provident Fund | Naval dockyard civilian workmen |
| Defence Services Officers Provident Fund | Commissioned officers in Defence |
| Armed Forces Personnel Provident Fund | Non-commissioned defence personnel |
What Is the General Provident Fund (GPF)?
The General Provident Fund is a savings scheme exclusively for government employees in India. Under this system, employees contribute a part of their salary into the fund throughout their career. When they retire, they receive the entire balance—principal plus interest—accumulated over the years.
- Only government employees are eligible
- Contributions are voluntary but fixed percentage
- The fund builds retirement security without market risk
The Finance Ministry reviews the GPF interest rate every quarter to align with current economic conditions.
How Is EPF Different from GPF?
The Employees’ Provident Fund (EPF) is meant for employees in the private sector or non-government organizations, unlike GPF which is only for government employees.
Here’s how they compare for 2025:
| Feature | GPF (Govt Employees) | EPF (Private Employees) |
|---|---|---|
| Interest Rate 2025 | 7.1% | 8.25% (2024–25 rate) |
| Frequency of Update | Quarterly | Yearly (by EPFO board) |
| Control Body | Ministry of Finance | EPFO |
| Eligibility | Govt employees only | Private sector workers |
How Is EPF Interest Credited?
EPF interest is calculated monthly but credited annually. According to Para 60 of the EPF Scheme, 1952, the interest is applied on the monthly closing balance of each month and is credited at the end of the financial year.
That means:
- Even if your balance changes mid-month, interest is calculated on the amount at month-end.
- The total interest gets reflected once a year, usually around March or April.
Is This Relevant for You?
This update is especially relevant if you:
- Are currently employed in any central or state government service
- Regularly check your GPF balance and planning tools
- Rely on this fund as a core part of your retirement savings
- Want to know whether to invest additional funds in GPF or other avenues
If you’re in the private sector, this update won’t apply to your EPF account—but the comparison helps you see where you stand.
Key Points to Remember
- No change in GPF rate this quarter: still at 7.1%
- Applies from July 1 to September 30, 2025
- Affects all central services, defence, railway, and allied schemes
- EPF is separate and carries a higher rate—but different rules
FAQs About GPF Interest Rate – July–Sept 2025
Q: Has the GPF interest rate increased for this quarter?
No, the rate has been kept unchanged at 7.1%.
Q: Is this rate better than bank FD interest?
In many cases, yes. Bank FDs currently offer 6.5%–7% for similar tenure.
Q: Does this interest apply to new employees too?
Yes, if they are eligible for GPF or similar government PF schemes.
Q: When will the next GPF rate be announced?
It will be updated for the October–December 2025 quarter at the end of September.
Official Source:
Ministry of Finance – GPF Interest Rate Notification (.gov.in)
