How subscriptions and Rule 14 interest build a GP Fund balance
Every month a fixed subscription is deducted from a federal employee's pay into the General Provident Fund, and interest is credited on 30 June each year. This calculator uses the subscription table issued for the 2026 pay scales and the interest method in Rule 14 of the GP Fund rules, so you can see how your balance builds over several years and how much comes from interest.
Subscriptions are deducted monthly and interest is credited once, on 30 June. Rule 14 gives the opening balance 12 months of interest, and each month's deduction interest from the first day of the month in which it is recovered to the end of the year. With twelve equal deductions from July to June, the months add up to 12 + 11 + … + 1 = 78. So yearly interest is (12 × opening balance + 78 × monthly subscription) × rate ÷ 1,200, rounded to the nearest rupee. The closing balance becomes the next year's opening balance.
Year-end bars separate your opening balance, subscriptions and interest, so you can see how much of the balance comes from interest.
Scale, opening balance, interest, rate and years in the projection
Over several years the opening balance and rate do most of the work. The monthly subscription matters most in the first year and for small balances.
- Basic pay scale or custom subscription
- Choosing a scale fills in the 2026 table rate, from Rs 722 for BS-1 to Rs 17,605 for BS-22. Moving the example from BS-17 at Rs 7,619 to BS-18 at Rs 9,562 lifts the five-year balance from Rs 3,268,773 to Rs 3,426,720. Use the custom amount only if your actual deduction differs from the table.
- Opening balance
- Enter the balance on 1 July from your latest statement. It earns a full 12 months of interest, so at 12.05% each extra Rs 100,000 adds Rs 12,050 in the first year alone. A 30 June statement already includes that year's interest; adding it again double-counts.
- Interest credited or interest-free
- An interest-free account only adds subscriptions: the example ends at Rs 1,957,140 after five years instead of Rs 3,268,773, a difference of Rs 1,311,633. The choice applies to every projected year, so a switch partway through has to be run as two separate projections.
- Assumed yearly rate
- The rate is fixed after each financial year ends, so any future figure is an assumption. Over five years the example reaches Rs 3,004,175 at 10% and Rs 3,268,773 at 12.05%. A new subscriber with no opening balance earns only Rs 5,968 of first-year interest at 12.05%, because July's deduction earns 12 months and June's just one.
- Years projected
- From 1 to 40 financial years can be projected, each closing balance becoming the next opening balance. Because interest compounds, stretching the example from 5 to 10 years nearly doubles the balance to Rs 6,392,919 while total interest roughly triples to Rs 3,978,639. Promotions and withdrawals in those years are not modeled.
Steps
- Choose your basic pay scale to use its official monthly subscription, or enter another amount.
- Enter your balance at the start of the financial year (1 July) and choose whether your account earns interest.
- Enter the yearly rate you want to assume and the number of years, then calculate.
Reading tip: Start from the balance shown on your latest GP Fund statement, which normally runs to 30 June. If you expect promotion, run the calculation again with the new scale for the later years.
Provident fund questions a projection can answer
Estimate your balance
Project your GP Fund to retirement using your scale's official subscription and an assumed rate.
See interest separately
Find how much of your balance comes from interest credited each year.
Compare interest-free
Compare an interest-bearing account with an interest-free one over the same years.
Check a yearly statement
Recompute a year's interest from the opening balance, subscription and announced rate.
How the calculation works
- B
- Balance on 1 July, the start of the financial year, in rupees.
- s
- Monthly subscription, from the 2026 BS table or an amount you enter.
- 78
- Months of interest earned by twelve deductions: July earns 12 months, August 11, down to June's 1.
- r
- Yearly interest rate in percent; 12.05% was the official rate for 2025-26.
Each year's real rate is announced after it ends, so later years use your assumed rate.
What every part means
- B
- Balance on 1 July, the start of the financial year, in rupees.
- s
- Monthly subscription, from the 2026 BS table or an amount you enter.
- 78
- Months of interest earned by twelve deductions: July earns 12 months, August 11, down to June's 1.
- r
- Yearly interest rate in percent; 12.05% was the official rate for 2025-26.
Calculate it step by step
The BS rates come from the Finance Division OM of 13 August 2026.
B is the opening balance, s the monthly subscription and r the yearly rate in percent.
Repeat for each year projected. An interest-free account uses I = 0.
The subscription table is from Finance Division OM No. F.N.2(1)R-7/2026-0001 of 13 August 2026, and the interest method from Rule 14 of the General Provident Fund (Federal Services) Rules. The official rate was 13.97% for 2023-24, 12.46% for 2024-25 and 12.05% for 2025-26; the rate for later years is not yet known, so a single entered rate is an assumption. Crediting deductions from July is Calculation Guide's convention.
See how Calculation Guide tests examples and handles calculation limits.
See it in practice
- Basic pay scale
- BS-17: Rs 7,619 a month
- Balance at the start of the financial year
- 1500000 Rs
- Interest on the account
- Interest credited
- Assumed yearly interest rate
- 12.05 %
- Financial years to project
- 5 years
BS-17: s = Rs 7,619, B = Rs 1,500,000, r = 12.05. I = (18,000,000 + 594,282) × 12.05 ÷ 1,200 = Rs 186,718. Closing = 1,500,000 + 91,428 + 186,718 = Rs 1,778,146.
- Monthly subscriptionRs 7,619
- Opening balanceRs 1,500,000
Interpretation & limitations
How to read your result
Example: a BS-17 subscriber pays Rs 7,619 a month, Rs 91,428 a year, from an opening balance of Rs 1,500,000. At 12.05%, first-year interest is (12 × 1,500,000 + 78 × 7,619) × 12.05 ÷ 1,200 = Rs 186,718, so the balance at 30 June is Rs 1,778,146. After five years at the same rate it reaches Rs 3,268,773, of which Rs 1,311,633 is interest.
Where this estimate stops
The projection ignores advances and their recovery, final withdrawals, promotions, arrears, a mid-year joining date and changes in the rate from year to year. It does not show provincial or corporation provident funds, which have their own rules. Employees appointed on or after 1 July 2024 are under a contributory pension scheme, and whether they subscribe to GP Fund is not confirmed here.
Frequently asked questions
01What is the GP Fund subscription for my scale?
Finance Division OM No. F.N.2(1)R-7/2026-0001 of 13 August 2026 sets uniform monthly rates for the 2026 pay scales, from Rs 722 for BS-1 to Rs 17,605 for BS-22, deducted from August pay paid on 1 September 2026.
02Can I keep my GP Fund interest-free?
Yes. Rule 14(5) lets a subscriber ask the accounts office not to credit interest. If you later ask for interest, it is credited from the first day of that year.
03When are GP Fund rates announced?
The rate for a financial year is fixed after the year ends. For example, the 12.05% rate for 2025-26 was announced in August and September 2026.
04Is GP Fund subscription compulsory?
Rule 6 makes it compulsory for permanent employees and for temporary employees after two years' continuous service. Others who are eligible may subscribe voluntarily.
05Does a withdrawal change the interest?
Yes. Money withdrawn earns interest only up to the end of the month before the withdrawal. This projection assumes no withdrawals.
06Does my subscription change on promotion?
Rule 11 says a change in the rate because of promotion or reversion takes effect from the next 1 June. Run the calculator again with the new scale from that point.