GPF vs EPF: How much will you earn this season from retirement savings?

The government keeps interest rate on GPF at 7.1% for July-Sept quarter, while EPF savers see 8.25% interest credited for FY26. Here's what it means for your retirement corpus

The government has kept the interest rate for the General Provident Fund (GPF) unchanged at 7.1 per cent for the

 

second quarter of the financial year 2026 (Q2FY26). This rate applies to the retirement savings of government employees and several other categories covered under similar provident fund schemes.

 

Who will benefit?

• General Provident Fund (Central Services) 
• Contributory Provident Fund 
• All India Services Provident Fund 
• Defence Services Provident Fund 
• Indian Ordnance Factories Workmen’s Provident Fund 
• Indian Naval Dockyard Workmen’s Provident Fund 
• Armed Forces Personnel Provident Fund, among others.

The new rate, effective from July 1, 2025 to September 30, 2025, was notified by the Budget Division of the ministry of finance and will continue to offer a fixed return to subscribers during this quarter.

 

EPF offering higher returns

 

While the Employees’ Provident Fund Organisation (EPFO), which manages retirement savings for private sector employees, has started crediting an interest rate of 8.25 per cent for FY25 into members’ accounts. While there has been no formal announcement through SMS or email yet, several EPF subscribers have reported that the updated interest amounts are now visible in their passbooks.

 

GPF versus EPF: Key Differences

Interest Rates: EPF currently offers a higher return (8.25 per cent) compared to GPF’s 7.1 per cent

 

Eligibility: GPF is meant for central and state government employees who joined service before 2004, while EPF is mandatory for most private sector workers.

 

Flexibility: EPF subscribers also enjoy the benefit of employer contributions and a higher annual adjustment of rates based on earnings of the EPF corpus.

 

Why does this matter for savers?

While the interest rate on GPF has remained stable over the recent quarters, the higher EPF rate underlines the relatively better returns private sector employees are earning on their mandatory retirement savings.