Punjab has announced a modest cut in the profit rate on its General Provident Fund for government employees, lowering it to 12.05% for the upcoming fiscal year amid wider fiscal tightening measures.
Punjab has trimmed the profit rate on its General Provident Fund for government employees to 12.05% for fiscal year 2025-26, according to a notification from the provincial finance department. The new rate is 0.41 percentage points lower than last year’s 12.46%, signalling a modest reduction in returns on a compulsory savings scheme used by public-sector workers.
Officials said the change has been circulated to the heads of autonomous and semi-autonomous bodies, along with development authorities. The revised rate will not apply to employees whose fund rules already provide for a separate profit calculation.
The General Provident Fund requires a fixed share of an employee’s monthly salary to be deducted and saved. The accumulated balance, plus profit earned, is paid out when the employee retires, resigns or dies. Pakistan’s Ministry of Finance had already cut the return on provident funds to 12.46% for the previous fiscal year, from 13.97%, as part of wider efforts to manage fiscal pressures, according to a resolution issued in September 2025.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
