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The GP Fund, or General Provident Fund, is a government employee’s compulsory savings account in Pakistan. A fixed amount is deducted from your salary every month, the government adds annual mark-up, and the full balance is paid to you when you retire. It is one of the few retirement savings where the government guarantees a fixed return every year.
This guide explains who must join, the deduction rates for every pay scale, the current mark-up rate, how the interest is calculated, when you can withdraw, and how to check your balance.
What Is the GP Fund?#
The GP Fund is a compulsory savings fund for government employees, governed by the Provident Funds Act, 1925. Federal employees are covered by the General Provident Fund (Central Services) Rules, 1960, and each province has its own equivalent, such as the Punjab General Provident Fund Rules, 1978.
It is not a pension. A pension is a monthly payment after retirement, paid by the government. The GP Fund is your own savings: your deductions plus the annual mark-up, paid to you as a lump sum when you retire, resign, or on your death to your nominees or legal heirs.
Your money is protected. Under the Provident Funds Act, 1925, a compulsory deposit in a Government Provident Fund cannot be assigned or charged. On the subscriber’s death, the sum standing to his credit is payable to his dependants or nominees.
Who Must Join the GP Fund in Pakistan?#
All government servants in permanent, temporary or officiating service, including probationary service, are eligible to join. A government servant who has completed two years’ continuous service subscribes compulsorily. A government servant who subscribes to a Contributory Provident Fund is not eligible to join the GP Fund.
You may opt not to subscribe during leave. The rules let a subscriber stop subscribing while on leave, by making no deduction in the first pay bill drawn after proceeding on leave.
You can subscribe above the minimum. The amount of subscription is fixed by the subscriber himself, subject to the rules, so you can pay more than the minimum rate if your department allows it.
The Deduction Rates: BPS-1 to BPS-22#
The minimum subscription is a percentage of the mean of your pay scale: 3% for BS-1, 5% for BS-2 to BS-11, and 8% for BS-12 to BS-22. The rates were revised by the Ministry of Finance on 13 August 2026, in line with the new BPS-2026 pay scales. Deductions at the new rates begin from the August 2026 payroll, credited on 1 September 2026, and remain in effect until further orders.
| Scale | Mean of scale | Rate | Monthly deduction |
|---|---|---|---|
| BS-1 | Rs 24,080 | 3% | Rs 722 |
| BS-2 | Rs 25,450 | 5% | Rs 1,273 |
| BS-3 | Rs 27,630 | 5% | Rs 1,382 |
| BS-4 | Rs 29,650 | 5% | Rs 1,483 |
| BS-5 | Rs 31,950 | 5% | Rs 1,598 |
| BS-6 | Rs 34,080 | 5% | Rs 1,704 |
| BS-7 | Rs 36,090 | 5% | Rs 1,805 |
| BS-8 | Rs 38,440 | 5% | Rs 1,922 |
| BS-9 | Rs 40,640 | 5% | Rs 2,032 |
| BS-10 | Rs 43,130 | 5% | Rs 2,157 |
| BS-11 | Rs 46,110 | 5% | Rs 2,306 |
| BS-12 | Rs 49,550 | 8% | Rs 3,964 |
| BS-13 | Rs 53,620 | 8% | Rs 4,290 |
| BS-14 | Rs 58,410 | 8% | Rs 4,673 |
| BS-15 | Rs 64,430 | 8% | Rs 5,154 |
| BS-16 | Rs 74,520 | 8% | Rs 5,962 |
| BS-17 | Rs 95,240 | 8% | Rs 7,619 |
| BS-18 | Rs 119,530 | 8% | Rs 9,562 |
| BS-19 | Rs 160,010 | 8% | Rs 12,801 |
| BS-20 | Rs 179,370 | 8% | Rs 14,350 |
| BS-21 | Rs 199,120 | 8% | Rs 15,930 |
| BS-22 | Rs 220,060 | 8% | Rs 17,605 |
The mean of the scale is the midpoint between the minimum and maximum basic pay of that scale. Our BPS pay scale chart 2026 gives the minimum and maximum for every scale from BPS-1 to BPS-22, so you can check your own mean.
The Mark-Up Rate: 12.05% for FY 2025-26#
The mark-up rate for the fiscal year 2025-26 is 12.05%. The Ministry of Finance notified it on 12 August 2026. It is 0.41 percentage points lower than the 12.46% rate that applied in 2024-25. The official notification is published at finance.gov.pk.
| Fiscal year | Mark-up rate |
|---|---|
| 2020-21 | 13.00% |
| 2021-22 | 12.40% |
| 2022-23 | 14.22% |
| 2023-24 | 13.97% |
| 2024-25 | 12.46% |
| 2025-26 | 12.05% |
| 2026-27 | Not yet notified |
The rate is notified after the fiscal year closes, not before it. The Finance Division sets it retroactively, based on the average yield of government securities and National Savings schemes during the fiscal year that just ended. Your GP Fund keeps earning profit in the background even before the official number is announced; the notification simply confirms and locks in the figure used to credit your account. The 2026-27 rate is expected around mid-to-late 2027.
How the Interest Is Calculated#
Annual Interest = (Sum of Monthly Balances × Rate of Interest) ÷ 1200. This is the official formula used by AGPR and every provincial Accountant General office. The sum of monthly balances is your GP Fund closing balance at the end of each month, added together for all 12 months of the fiscal year, from 1 July to 30 June. The divisor 1200 is 12 months × 100, which converts the annual percentage into a monthly figure.
Interest is credited once a year, on 30 June, and it compounds. The interest credited on 30 June becomes part of your balance, and it starts earning further interest in the next year. That is why GP Fund balances grow much faster in the final five to ten years before retirement.
Worked example. Suppose your GP Fund balance grows steadily from Rs 300,000 in July to Rs 355,000 by June, increasing by roughly Rs 5,000 every month through your salary subscription. Add up all 12 monthly closing balances: about Rs 3,930,000. Multiply by the rate: 3,930,000 × 12.05 = 47,356,500. Divide by 1200: Rs 39,464 of annual interest credited. For FY 2024-25 balances, use 12.46% instead: 3,930,000 × 12.46 ÷ 1200 = Rs 40,816.
Can I Withdraw GP Fund Before Retirement?#
Yes, but only in the ways the rules allow. Final withdrawal is permitted on retirement, resignation, or death, when the balance is paid to the subscriber or to the nominees or legal heirs. Before that, you can take an advance.
Non-refundable advances can be sanctioned for specific purposes: marriage in the family, medical treatment, higher education, house construction or repair, or a family emergency. The amount is generally up to a fixed number of months’ pay or a percentage of the balance, subject to departmental approval.
Refundable advances are also allowed for less restrictive purposes, but they must be repaid through salary deductions over a set number of installments.
Partial final withdrawal near retirement. Employees within a certain number of years of retirement, commonly the last 12 to 24 months of service depending on department policy, may be eligible for partial final withdrawal without needing to justify the purpose.
How to apply. All withdrawals require submission through your DDO, the Drawing and Disbursing Officer, with sanction from the competent authority, and supporting documents such as your CNIC, a service book extract, and purpose-specific proof. Un-withdrawn balances continue to earn the notified annual mark-up until the funds are actually paid out. Confirm the exact limits and documents with your department’s Accounts or Finance section, because the provinces apply minor procedural variations.
How to Check Your GP Fund Balance in Pakistan#
Your official annual statement comes from your Accountant General office. For federal employees that is the AGPR, the Accountant General Pakistan Revenues. For provincial employees it is your provincial Accountant General office.
The statement shows:
- Opening balance
- Monthly subscriptions
- Interest credited
- Advances taken
- Closing balance
Your monthly deduction appears on your PIFRA salary slip. The PIFRA salary slip shows your basic pay, allowances and deductions, including the GP Fund deduction. You can get it online at m.pifra.gov.pk/salaryslip_emp after PIFRA email registration. Our conveyance allowance guide explains the other allowances on the same payslip.
Track an advance claim by its token number. When a GP Fund advance claim is submitted to the accounts office, it is assigned a unique token number. You can track it on the PIFRA portal at m.pifra.gov.pk/token_page: select your government, enter the token number, and the portal shows whether the claim is in process, approved, or paid.
Is the GP Fund Taxable?#
The final payment from a statutory provident fund is exempt from income tax. The GP Fund is a statutory provident fund set up under the Provident Funds Act, 1925, and payment from such a fund is exempt. Confirm the current treatment with your DDO or a tax adviser before retirement, because the FBR rules change.
Frequently Asked Questions#
What is the GP fund deduction rate?
The minimum subscription is a percentage of the mean of your pay scale: 3% for BS-1, 5% for BS-2 to BS-11, and 8% for BS-12 to BS-22. The rates were revised by the Ministry of Finance on 13 August 2026, in line with the BPS-2026 pay scales, and deductions at the new rates begin from the August 2026 payroll. For example, a BS-17 officer pays Rs 7,619 a month, and a BS-22 officer pays Rs 17,605 a month. You may subscribe above the minimum, subject to departmental rules.
Can I withdraw GP fund before retirement?
Yes, but only in the ways the rules allow. You can take a non-refundable advance for marriage in the family, medical treatment, higher education, house construction or repair, or a family emergency, up to a fixed number of months’ pay or a percentage of the balance, subject to departmental approval. You can also take a refundable advance, repaid through salary deductions. Employees in the last 12 to 24 months of service may be eligible for partial final withdrawal without justifying the purpose. All withdrawals go through your DDO with sanction from the competent authority.
What is the GP fund interest rate for 2026-27?
It has not been notified yet. The Ministry of Finance notifies each year’s mark-up rate only after that fiscal year closes, so the 2026-27 rate is expected around mid-to-late 2027. The most recent confirmed rate is 12.05% for FY 2025-26, notified on 12 August 2026, down from 12.46% in FY 2024-25. There is no notified rate for 2026-27 yet.
How do I check my GP fund balance?
Your official annual statement comes from your Accountant General office: the AGPR for federal employees, or your provincial Accountant General office. Your monthly GP Fund deduction appears on your PIFRA salary slip at m.pifra.gov.pk/salaryslip_emp, after PIFRA email registration. If you have submitted a GP Fund advance claim, you can track it on the PIFRA portal at m.pifra.gov.pk/token_page using the token number given by your accounts office.
Is GP fund taxable?
The final payment from a statutory provident fund is exempt from income tax. The GP Fund is a statutory provident fund set up under the Provident Funds Act, 1925. Confirm the current treatment with your DDO or a tax adviser before retirement, because the FBR rules change.
