The government of the Pakistan Finance Department has issued the official Notification letter in connection with GP fund interest rates 2022-23 for Federal Government Employees.
According to the letter, the revised Rate of Mark-up on the state Provident fund i.e., the General Provident fund, for the Fiscal year 2022-23 are as under:
GP Fund Interest Rates 2022-23
I am directed to convey that the rate of mark-up on State Provident i.e. general provident Fund (GP Fund) for the fiscal year 2022-23 is as under:-
Chart of GP Fund Interest Rates 2022
| S.No. | Fiscal Year | Rate of Mark-up |
| 1 | 2018-2019 | 14.35% |
| 2 | 2019-2020 | 12.00% |
| 3 | 2020-2021 | 07.90% |
| 4 | 2021-2022 | 12.40% |
It has been decided to fix the GP fund interest rates up to 12.40% profit rate per annum will apply during the financial year 2022 to the state Provident Fund i.e., General Provident Fund.
Govt Employees GP Fund Deduction Rate Monthly 2022
| BPS | Old GP Fund Rate | New GP Fund Rate | Difference |
| 1 | 400 | 600 | 200 |
| 2 | 710 | 1059 | 349 |
| 3 | 770 | 1148 | 378 |
| 4 | 830 | 1230 | 400 |
| 5 | 890 | 1324 | 434 |
| 6 | 950 | 1418 | 468 |
| 7 | 1010 | 1498 | 488 |
| 8 | 1070 | 1595 | 525 |
| 9 | 1140 | 1691 | 551 |
| 10 | 1210 | 1795 | 585 |
| 11 | 1290 | 1915 | 625 |
| 12 | 2220 | 3298 | 1078 |
| 13 | 2400 | 3565 | 1165 |
| 14 | 2620 | 3890 | 1270 |
| 15 | 2890 | 4290 | 1400 |
| 16 | 3340 | 4958 | 1618 |
| 17 | 4270 | 6342 | 2072 |
| 18 | 5360 | 7958 | 2598 |
| 19 | 7180 | 10651 | 3471 |
| 20 | 8050 | 11944 | 3894 |
| 21 | 8940 | 13258 | 4318 |
| 22 | 9880 | 14653 | 4773 |
New General Provident Fund Subscription Rates 2022-23
The Finance Department of Pakistan has issued the latest notification on 31st August 2022 in connection with uniform rates of subscription towards general provident fund. The undersigned is directed to refer to Finance Division’s OM No F.1(5)-Reg 7/87-365 dated 24-07-2017 on the above subject and to state that consequent upon the revision of basic pay scales for the civil employees of the Federal Government circulated vide Finance Division’s OM F.1(2)Imp/2022-283 dated 01-07-2022, it has been decided to revise the amount of subscription towards General Provident Fund as per existing rates as shown in column 5 of the following table;
| Scale | Monthly Subscription | Remarks | ||||||||
| BPS-01 | 600 | Minimum Rates of Subscription
(on mean) will be as under:-
|
||||||||
| BPS-02 | 1060 | |||||||||
| BPS-03 | 1150 | |||||||||
| BPS-04 | 1230 | |||||||||
| BPS-05 | 1330 | |||||||||
| BPS-06 | 1420 | |||||||||
| BPS-07 | 1500 | |||||||||
| BPS-08 | 1600 | |||||||||
| BPS-09 | 1700 | |||||||||
| BPS-10 | 1800 | |||||||||
| BPS-11 | 1920 | |||||||||
| BPS-12 | 3300 | |||||||||
| BPS-13 | 3570 | |||||||||
| BPS-14 | 3900 | |||||||||
| BPS-15 | 4290 | |||||||||
| BPS-16 | 4960 | |||||||||
| BPS-17 | 6350 | |||||||||
| BPS-18 | 7960 | |||||||||
| BPS-19 | 10,660 | |||||||||
| BPS-20 | 11,950 | |||||||||
| BPS-21 | 13,260 | |||||||||
| BPS-22 | 14,660 |
The deductions from the pay of employees on the basis of new rates shall be made in September to be paid on 1st October, 2022. until further orders. There shall be no option to postpone subscription to the above fund either during leave (except extraordinary leave without pay) or during the training period.
GP Fund Rates History:
These rates of GP Fund Interest 2021-22 are the lowest since 1972. These rates are the lowest after 1972-73. These rates were between 3% and 7.25% before 1972-73. In 1997-98, the highest rate of GP Fund in Pakistan’s history was 22.763. For the same evidence, you can see the GP Fund Interest Rates since 1954.
The markup rates rose initially, reaching a peak of over 22%. They dropped significantly this year. This notification will make employees unhappy if they are receiving interest in their General Provident Fund.
Where Can Employees Use GP Fund Markup:
We can use the recently announced marks-up for many purposes. These rates can be used for the following purposes:
- Calculation of GP Fund Interest for GP Fund Subscription
- Calculation of the Interest on Motorcycle Advance/Motorcar Advance
- To calculate interest on a house building advance
Subscription to GP Funds Interest
The Accounts Office subtracts the GP Fund amount monthly from the pay bills. These rates apply to the GP Fund subscription until June 2022. This rate will not apply to employees who have an Interest-Free GP Fund. This category of employees gets an Interest Free Loan of House Building Advance, Motorcycle/Motorcar Advance. Non-gazetted employees do not pay interest on their HBA.
Calculate interest on a house building advance
Non-gazetted employees or employees who do not get interest on GP Fund will be required to pay no Interest on HBA. They will receive an interest-free House Building Advance.
Gazetted employees, and employees who earn interest on their GP Fund, will be required to pay interest on HBA. The HBA rate for employees who received HBA from 1st July 2021 through 30th June 2022 is 7.90.
Calculation of the Interest on Motorcycle Advance/Motorcar Advance
Employees who receive mark-up on the GP Fund will be required to pay interest on motorcar or motorcycle advances. These rates will use to calculate the Interest of Motorcycle Advance / Motorcar Advance. These advances will be paid interest at 7.90% to employees who received them between 1st July 2021 and 30th June 2022.
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