The federal government has reduced the profit rate on the General Provident Fund (GPF) for government employees by 41 basis points, or 0.41 percentage points, bringing the new rate to 12.05%.
The Finance Ministry said the revised rate would apply to GPF subscriptions and balances for the financial year 2025-26, beginning on 1 July 2025.
The reduction will directly affect the profit earned by federal employees on their retirement savings.
The GPF profit rate for the previous financial year, 2024-25, stood at 12.46%. The government set that rate through a notification issued on 10 September 2025.
The General Provident Fund is a long-term savings scheme for federal government employees. A fixed amount is deducted from employees’ salaries each month and deposited into their GPF accounts, on which the government pays an annual profit.
The Finance Ministry said separate instructions on profit rates for provident funds operated by the Ministry of Defence and Pakistan Railways would be issued by the respective ministries.
Also Read, Big news for govt employees as salaries, allowances changes decided
Earlier, Government employees have received important news as changes to their salaries and allowances have been approved.
According to a report by a private TV channel, the Peshawar Electric Supply Company (PESCO) has approved changes to the salaries and allowances of its employees.
According to an official notification, approval has been granted to provide an Ad Hoc Relief Allowance to PESCO employees effective July 1, 2026.
