GPF and CPF Profit Rate 2021-22: 12.40% Per Annum
The GPF and CPF Profit Rate 2021-22 was fixed at 12.40% per annum under Finance Division Resolution No. F.2(1)-Reg.7/2014-42 dated 17 February 2023.
Overview
The Federal Government notified a 12.40% annual profit rate for GPF and CPF for FY 2021-22; the State Provident Fund letter also recorded the same rate.
Key Highlights
- Financial year: 2021-22 (1 July 2021 to 30 June 2022).
- GPF and CPF rate of profit: 12.40% per annum.
- State Provident Fund/GPF mark-up rate for FY 2021-22: 12.40%.
- The 17 February 2023 resolution refers to the prior FY 2020-21 rate of 7.90%.
- The resolution lists the General Provident Fund and Contributory Provident Fund as the funds concerned.
- Separate instructions for Ministry of Railways and Ministry of Defence funds were to be issued by those Ministries.
Detailed Explanation
The GPF and CPF Profit Rate 2021-22 was fixed at 12.40% per annum by Finance Division Resolution No. F.2(1)-Reg.7/2014-42 dated 17 February 2023. The resolution applies to subscriptions and balances during the financial year beginning on 1 July 2021 and specifically identifies the General Provident Fund (GPF) and Contributory Provident Fund (CPF).
GPF and CPF Profit Rate 2021-22: Key Details
- Financial year: 2021-22 (1 July 2021 to 30 June 2022).
- Annual profit rate: 12.40% per annum.
- Funds covered by the resolution: General Provident Fund (GPF) and Contributory Provident Fund (CPF).
- Finance Division resolution: No. F.2(1)-Reg.7/2014-42 dated 17 February 2023.
- Related State Provident Fund letter: Budget Wing letter No. F.8(1)GS-I/2018-636 dated 16 August 2022.
- Separate departmental funds: Railway and Defence provident funds were to be addressed through separate instructions from the respective Ministries.
Finance Division Resolution: 12.40% Profit Rate for GPF and CPF
The Finance Division (Regulations Wing) resolution dated 17 February 2023 states that the rate of profit on subscriptions and balances in the various provident funds for the financial year beginning on 1 July 2021 would be 12.40% per annum. It names two funds: the General Provident Fund and the Contributory Provident Fund.
The resolution also refers to the previous financial year’s rate. For FY 2020-21, the rate had been fixed at 7.90% per annum under Finance Division Resolution No. F.2(1)-Reg.7/2014-554 dated 18 November 2021. The 2023 resolution then sets the rate for the financial year beginning 1 July 2021 at 12.40%.
State Provident Fund / GPF Mark-up Rate for FY 2021-22
Finance Division Budget Wing letter No. F.8(1)GS-I/2018-636 dated 16 August 2022 separately communicated the mark-up rate on the State Provident Fund, identified in the letter as the General Provident Fund (GP Fund). Its rate table records 12.40% for FY 2021-22.
The same letter lists the previous two financial years, which helps distinguish the FY 2021-22 rate from earlier rates:
| Financial Year | State Provident Fund / GPF Mark-up |
|---|---|
| 2019-2020 | 12.00% |
| 2020-2021 | 7.90% |
| 2021-2022 | 12.40% |
Which Provident Funds Are Covered?
The 17 February 2023 resolution expressly identifies the General Provident Fund and the Contributory Provident Fund. Accordingly, the notified 12.40% annual profit rate for FY 2021-22 applies to the subscriptions and balances in those two funds covered by the resolution.
The resolution separately states that instructions for provident funds under the control of the Ministry of Railways and the Ministry of Defence would be issued by those Ministries. The 12.40% rate in this Finance Division resolution should therefore not be treated as an automatic rate notification for those separately administered funds.
Frequently Asked Questions
What was the GPF and CPF Profit Rate 2021-22?
The annual profit rate was 12.40% for FY 2021-22.
Which financial year did the 12.40% rate cover?
It covered the financial year beginning 1 July 2021, which ran through 30 June 2022.
Which Finance Division document fixed the GPF and CPF rate?
Finance Division Resolution No. F.2(1)-Reg.7/2014-42 dated 17 February 2023 fixed the rate at 12.40% per annum.
Did the resolution cover both GPF and CPF?
Yes. The resolution specifically names the General Provident Fund (GPF) and the Contributory Provident Fund (CPF).
Was the same rate automatically applicable to Railway and Defence provident funds?
No. The resolution states that the respective Ministries would issue separate instructions for provident funds under their control.
Related EmployeesDesk Resources
For related provident fund rates, see State Provident Fund mark-up rate for FY 2022-23, GPF and CPF profit rate for FY 2023-24 and GPF and CPF profit rate for FY 2020-21.