In a major financial relief for government staff, the state has officially increased the GP Fund interest rate for ZP employees, effective from September 2025. This move is set to benefit thousands of teachers, clerks, health workers, and support staff working under Zilla Parishads across the state. The revised rate has been approved by the Finance Department and is now applicable to all active and retired contributors.
This interest revision follows a broader government review of employee welfare policies, especially those related to retirement and savings. The hike is expected to boost long-term savings for pension planning, especially for mid-career and nearing-retirement employees.
Revised GP Fund Interest Rate for 2025
The updated interest rate for the General Provident Fund (GPF) has been raised from 7.1% to 7.6% annually, with effect from 1st September 2025. The new rate is automatically applied to all ongoing and future deposits in the GP Fund maintained by ZP employees.
Key features of the new GP Fund update:
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Applicable to all permanent ZP employees with active GPF accounts
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Compounded annually and reflected in quarterly statements
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Includes arrears adjustment for contributions made from September 1, 2025
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Available for voluntary contributions as well as regular salary deductions
This increased return directly enhances the retirement corpus of state workers, making the pension system more attractive and secure.
Benefits of the Revised GP Fund Rate
The enhanced GP Fund rate offers several financial advantages to Zilla Parishad staff:
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Higher interest accumulation on retirement savings
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Better returns compared to fixed deposits and standard savings schemes
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Tax-free interest under existing government provident fund rules
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Supports employees’ mid-term needs through sanctioned GPF advances
With this rate revision, the government reiterates its commitment to employee welfare and responsible fiscal management, especially for rural administration.
Applicable Employees and Disbursement Process
All ZP employees under regular pay structure and GPF deduction are automatically covered under the new interest rate structure. This includes:
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Government school teachers
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Rural health centre staff
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Taluka-level administrative workers
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Clerks, accountants, and support personnel in Zilla Parishads
Employees do not need to take any action—the revised interest rate is being auto-applied and will reflect in the September–December quarterly statements. Pensioners receiving GPF maturity payouts post-September will also benefit from the new pension-aligned interest calculation.
Supporting Initiatives and Financial Education
In addition to the interest hike, financial literacy programs are being conducted across districts to educate ZP employees on GPF rules, loan withdrawal conditions, and pension planning strategies. Officers are being trained to help workers:
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Understand fund withdrawal rules without penalties
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Use GPF calculators to project future maturity value
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Plan for retirement using both GPF and contributory pension benefits
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Access digital GPF passbooks via employee self-service portals
These steps are aimed at creating financially informed workers who can make the most of their long-term savings.
FAQs
What is the new GP Fund interest rate for ZP employees?
The revised GP Fund interest rate is 7.6% annually, effective from 1st September 2025.
Who is eligible for the increased GP Fund interest?
All regular Zilla Parishad employees with active GPF accounts are eligible, including teachers, health workers, and clerical staff.
Do employees need to apply to receive the new rate?
No, the revised rate is automatically applied to all applicable accounts from September 2025 onwards.
Will this rate affect pension calculations?
Yes, since GPF maturity contributes to the overall retirement corpus, it positively impacts long-term pension benefits.
How can employees track their updated GP Fund balances?
Employees can log in to the state GPF portal or use their Employee ID to download digital passbooks showing updated interest credits.