Government of Pakistan, Finance Division (Budget Wing) issued a Notification on 16-08-2022 in connection with Revised GP Fund Interest Rates 2021-22 Federal. The details are as under:

Revised GP Fund Interest Rates 2021-22 Federal

I am directed to convey that the rates of mark-up on State Provident Fund i.e General Provident Fund (GP Fund) for the fiscal year 2021-22 are as under:

The Government of Pakistan this year raised the interest rate on the GP Fund to 12.40% instead of 7.40%. Thus a total of a 4.5% increase in the GP Fund rates in 2021-22. The employees having interest on their General Provident Fund will now get higher rates. If we look at the previous three years’ rates, the previous year’s rates were the lowest in about 50 years. In 2019-20 the rates of interest on GPF were reasonable i.e 12%.

Calculation of Annual Interest Amount

The total annual interest amount on GP Fund, we can calculate easily. For this purpose, I have prepared a simple calculation formula. By using this formula, you can get the total interest amount during the previous year in a few minutes.

These rates will be valid for the amount deposited with effect from 1st July 2022 to 30th June 2022. The accounts office deducts the GP Fund Subscription amount from the pay bills every month. If the employee has taken GP Fund Advance amount, the monthly deduction we also add to this sum. Thus we get the total interest amount by adding a monthly subscription plus a monthly advance deduction (if any).

Notifications of Provincial Governments

Federal Government issued the Notification on 16-08-2022 for GP Fund Mark-up Rates 2021-22. Punjab, Sindh, Balochistan, Khyber Pakhtunkhawa, AJK, and Gilgit Baltistan Governments have not issued the same. The rates of GP Fund mark-up for these provinces will also be the same as per previous practice. The Federal Government rates and the provinces will also adopt the same.

Punjab Government issued the Notification on 17th Aug 2022. The same is as under:

Special Thanks: Mr. Nazir Ahmad Gill