Govt keeps GPF interest rate at 13%, relaxes CPF rate
However, without fixing a single-profit rate, a maximum of 13 percent interest rate has been set for perking money in the Contributory Provident Fund (CPF) for employees at autonomous organisations.
Government employees will get 13 percent in profits against their deposits with the General Provident Fund (GPF) in the current fiscal year too.
However, without fixing a single-profit rate, a maximum of 13 percent interest rate has been set for perking money in the Contributory Provident Fund (CPF) for employees at autonomous organisations.
As a result, corporations or autonomous bodies will be able to cut profits rates on their workers' CPF deposits if they want.
Since all CPF-affiliated entities do not have the same financial capacity, they will be able to reduce profits from 13 percent on CPF deposits as per their own financial rules and regulations, according to a notification, signed by Dr Md Nazrul Islam, joint secretary to the Finance Division, issued on Wednesday.
An official at the Finance Division told The Business Standard that the CPF's profit rate will be determined by the autonomous agencies themselves according to their financial capabilities.
If any entity wants, it can give 13 percent in profit on CPF deposits to its employees, or they can also pay less if they do not ability.
An employee can deposit 5-25 percent of their basic salary in the GPF while those affiliated with the CPF can deposit 3-8 percent.
