Government of Pakistan, Finance Division issued the Notification of GP Fund Mark-Up Rates (Interest Rates) 2023-24 Federal employees. The Government has decreased the rates of interest on the general provident fund for the fiscal year 2023-24. In previous years these rates were 14.22% now the Government fixed the rate at 13.97%.
GP Fund Mark-Up Rates (Interest Rates) 2023-24 Federal
Subject:- Rate of Mark-up on State Provident Fund u.e. General Provident Fund th Fiscal Year 2023-2024
I am directed to convey that the rate of mark-up on State Provident Fund i.e. General Provident Fund (GP Fund) for the fiscal year 2023-2024 is as under:
Fiscal Year
Rte Mark-up
2021-2022
12.40%
2022-2023
14.22%
2023-2024
13.97&
GP Fund Subscription and GP Fund Interest Rates
There is another term for GP Fund Subscription Rates. There is a difference between GP Fund Subscription Rates and GP Fund Mark-up/Interest Rates. GP Fund Interest Rates are those that are applicable on the amount that is available in the balance of the employees. These rates apply every year with effect from 1st July 2024. The GP Fund Subscription rates are those which the Accounts Office deducts every month from the salary of the employees. These rates are different for every Pay Scale Number.
Interest and Interest-Free Loan
Based on GP Interest and with interest, the Government employees get a loan or advance from the Department. These loans/advances are House Building Advances, Motorcycle Advances, Motorcar Advances etc. If the employee does not get the interest on the GP Fund, then he will get interest-free Motorcar/Motorcycle Advance. HBA is already interest-free for the non-Gazetted employees. However, Gazetted employees will have to pay interest on a loan from HBA if they get interest on the GP Fund. Simply employees getting interest in GP Fund will get advances with interest. While the employees having interest-free General Provident Fund will get loans/advances without interest. The HBA details I have already explained.
