The Punjab government has issued a notification regarding the General Provident Fund (GP Fund) of regular government employees, setting the profit rate on GP Fund balances at 12.05 per cent for the financial year 2025-26.
The GP Fund is a mandatory monthly deduction from the salaries of government employees, which accumulates throughout their service.
According to the notification, the balance maintained in the GP Fund as of June 30, 2026, will earn a profit at the rate of 12.05 per cent. The profit will be credited in August, resulting in an increase in the GP Fund amount reflected in employees’ August salary slips.
The federal government has also reduced the markup rate on the General Provident Fund for the financial year 2025-26. The revised rate of 12.05 per cent will be applicable from July 1, 2025.
According to the notification, the GP Fund markup rate stood at 12.46 per cent during the financial year 2024-25. It has now been reduced to 12.05 per cent.
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