The Punjab government has fixed the profit rate on the General Provident (GP) Fund for government employees at 12.05 per cent for the financial year 2025–26. According to the Punjab Finance Department, the new rate will apply to GP Fund accounts of provincial government employees for the ongoing financial year.
The Punjab government has announced the rate of profit on the General Provident (GP) Fund for government employees. According to the Punjab Finance Department, the profit rate on the GP Fund has been fixed at 12.05 per cent for the financial year 2025–26. In the previous financial year, 2024–25, the GP Fund profit rate was 12.46 per cent, meaning the new rate has been reduced by 0.41 percentage points.
The Finance Department has issued a formal notification regarding the revised profit rate. Heads of autonomous and semi-autonomous institutions, as well as all development authorities, have also been informed of the decision. According to officials, the new rate of 12.05 per cent will not apply to employees whose profit rate is separately determined under the relevant fund rules.
The GP Fund is a savings scheme for government employees. A fixed amount is deducted from an employee’s salary each month and deposited into the fund. The accumulated amount, along with the applicable profit, is paid to the employee upon retirement or resignation, or to their legal heirs in the event of death.