Govt jacks up rate of return on employees’ provident fund

ISLAMABAD: The government has increased the rate of return of the provident fund of government employees.

The rate of return of GP Fund was 12.40 per cent in the last financial year, but the government has increased it to 14.22 per cent for the current financial year 2023-24.

This means that the employees will get more interest on their savings in the fund. The Ministry of Finance has informed the Controller General of Accounts through a letter.

A provident fund is a retirement savings scheme that allows employees to contribute a part of their salary to a fund that accumulates interest over time.

The government also contributes to the fund on behalf of the employees.

The provident fund is managed by a separate trust that is registered with the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR).

The increase in the rate of return is part of the government’s efforts to improve the welfare of its employees and pensioners.

It should be remembered that earlier the government had issued a notification to increase the salaries of government employees by 35 per cent and pension by 17 percent.

The government has also simplified the pension forms and appointed welfare officers and focal persons to facilitate the pensioners.