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The Financial Express

Govt cuts GPF, CPF profit rates for its employees

| Updated: October 25, 2021 13:27:50


Govt cuts GPF, CPF profit rates for its employees

The government has revised down the rates of profit on general provident fund (GPF) and contributory provident fund (CPF) for the government employees.

The ministry of finance issued a notification on the new rates on Thursday, a month after re-fixation of the rate of return (RoR) on savings certificates amid criticism that the government employees had been receiving the highest RoR against their savings.

For the GPF and CPF, the government employees had been getting profit at a flat rate of 13 per cent.

With the revision, from now on, they will get a profit at the rate of 13 per cent for the balance up to Tk 1.5 million, 12 per cent for the balance between Tk 1.5 million and Tk 3.0 million.

For balance over Tk 3.0 million the rate of profit is re-fixed to 11 per cent.

The autonomous bodies and corporations will be able to re-fix the rate of profit of CPF based on their financial ability, according to the notification.

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