The General Provident Fund (GP Fund) is an important savings scheme for government employees in Pakistan. It helps employees build a financial reserve during their service years, which they can withdraw upon retirement, resignation, or in case of emergencies. In 2025, updated GP Fund deduction rates have been implemented, especially in Punjab, affecting the monthly salary deductions for thousands of employees.
What is the GP Fund?
The GP Fund is a government-managed savings account where employees contribute a fixed amount of their salary every month. This contribution accumulates over time and earns interest. The purpose is to provide a secure fund that can support employees financially after their service or during emergencies. The scheme is compulsory for all permanent government employees, and in some cases, contract and probationary employees as well.
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Updated GP Fund Deduction Rates for 2025
In October 2025, the Punjab Government revised the monthly GP Fund deduction amounts based on employees’ Basic Pay Scale (BPS). These deductions will be reflected in the salary paid from November 2025 onwards. Below is the updated monthly deduction for various BPS grades:
| BPS Grade | Monthly Deduction (PKR) |
|---|---|
| BPS-01 | 600 |
| BPS-05 | 1,330 |
| BPS-10 | 1,800 |
| BPS-15 | 4,290 |
| BPS-20 | 11,950 |
| BPS-22 | 14,660 |
Note: This table shows select grades; full details cover all grades from BPS 1 to BPS 22.
These rates apply primarily to Punjab province employees and may vary slightly in other provinces or departments.
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Important Points to Know
- Mandatory Contribution: Every government employee in Punjab is required to contribute to the GP Fund unless exempted under specific rules.
- Deductions During Leave: Deductions continue even when employees are on leave, except for extraordinary leave without pay.
- Refundable and Non-Refundable Options: Employees under 50 years generally have refundable accounts, meaning they receive the amount in installments after retirement. Those above 50 can opt for non-refundable accounts to get full payment at once.
- Interest: The fund earns government-determined interest, which is credited annually, increasing the total savings.
How to Calculate Your GP Fund Balance?
To estimate your total GP Fund balance:
- Multiply your monthly deduction (based on BPS) by the number of months worked.
- Add accrued interest as per the government’s set rate.
- Use online calculators or consult your finance department for precise amounts.
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Why is the GP Fund Important?
The GP Fund is a reliable way to save systematically during your career, helping you secure your financial future. Understanding deduction rates and managing contributions wisely can maximize your benefits. keep visiting Bloom Pakistan!
