How to calculate the interest rates for General Provident Fund
The rate of interest on GPF is generally fixed after taking into consideration the average secondary market yields on government securities. The rates of interest on General Provident Fund (GPF) is 8% for the period from 1.4.2011 to 30.11.2011 and 8.6% from 1.12.2011 to 31.3.2012, whereas the rate of interest on EPF for the financial year 2011-12 is 8.25%.
whereas the rate of interest on EPF is fixed on the recommendation of the Central Board of Trustees (CBT) by the Employees Provident Fund Organisation (EPFO), Ministry of Labour and Employment based on the income earned on the accumulated fund during the financial year.
Ministry of Finance announced on 22nd May 2012, the interest rates on General Provident Fund and similar funds, which has been revised to 8.8% (Eight point eight per cent) with effect from 1.04.2012.