The government has reportedly approved an annual mark-up of 12.05% on the General Provident Fund (GP Fund) balances of eligible regular government employees. The profit will be calculated on balances maintained as of June 30, 2026.
According to the reported notification, the GP Fund profit will be added to employees’ accounts in August 2026, increasing their overall provident fund balance.
The GP Fund is a compulsory savings scheme for eligible government employees. Under the scheme, a fixed amount is deducted from employees’ salaries each month and deposited into their individual provident fund accounts.
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The accumulated amount, along with the annual mark-up announced by the government, is paid to employees under the applicable rules.
How much will employees receive?
The 12.05% mark-up will be calculated based on the eligible GP Fund balance as of June 30, 2026. For example:
- Rs100,000 balance: Rs12,050 profit
- Rs500,000 balance: Rs60,250 profit
- Rs1 million balance: Rs120,500 profit
The actual amount credited to an employee’s account may differ depending on the applicable GP Fund rules and the calculation method followed by the relevant government department.
The federal Ministry of Finance has a framework for determining the annual mark-up on State Provident Fund and General Provident Fund balances. Its latest publicly available notification for FY2024-25 set the GP Fund mark-up at 13.97%, while the rate for FY2022-23 was 14.22%.
The Ministry of Finance continues to publish GP Fund mark-up notifications under its Budget Wing regulations. Its 2026-27 budget section has also issued several updated rules and notifications related to government employees.