The Punjab government has announced a 12.05 percent profit rate on the General Provident (GP) Fund for government employees for fiscal year 2025-26, marking a 0.41 percentage point cut from last years rate of 12.46 percent.
The Punjab Finance Department confirmed the decision in a formal notification, which has also been circulated to the heads of autonomous and semi-autonomous institutions as well as all development authorities.
According to officials, the revised rate will not apply to employees covered under fund rules that prescribe a separate, independently fixed profit rate.
The GP Fund is a mandatory savings scheme for government employees, under which a fixed portion of an employees monthly salary is deducted and deposited into the fund.
The accumulated amount, along with profit earned, is paid out to the employee or their legal heirs upon retirement, resignation, or death.
