How to Calculate Interest on GP Fund Advance?

GP Fund or General Provident Fund is the amount that is being deducted from the pay of an employee on monthly basis at a fixed rate. This amount is actually the employees own amount that is given to the employee at the end of service or the employee can get it as and when he/she need it. Below the age of 45 the employee can get GP Fund Advance as refundable and at the age of 45 or more he/she may get the GP Fund advance non-refundable. I will here explain you the detail of the GP Fund Interest Amount and the method of calculating it.

Here is to mention that the employee can get 80 % of the total amount in his credit. Suppose an employee has Rs. 100000/- in his GP Fund balance then the employee can draw Rs. 80,000/- after sanctioning the higher authorities.

The formula for the calculation of GP Fund Advance Interest is as under:

GP Fund Advance Interest Amount=

Total Amount x Total Number of Installments/500

Generally the total number of Installments is 48.

Example of GP Fund Advance Interest Amount:

Suppose an employee gets 50,000/- as GP Fund Advance then the total interest on this amount will be as under:

50,000 x 48/500 = Rs. 4800/-

Thus the employee will have to pay Rs. 4800/- as interest amount and hence total amount along with interest will be Rs. 54,800/-



GP Fund Advance



You will also like to see: GP Fund Interest Rates 1963 to 2012-13



  1. Dr shoaib says:

    Salam. It is our money kept with government who give us interest. Why government take interest when we draw some of our money? We did not take loan from some one. We took out our money. Please repley

  2. Salma says:

    Aoa I want to clarify is GP fund given together at the end of retirement or like pension on monthly basis also is benevolent fund also given back to retired employees.

  3. Athar Munir says:

    Mei provincial dept mei 14 scale employee hon. Mera GPF with interest hai. Mei usse without interest karwana chahta hon. Kya aisa possible hai aur iss ka tareeqa kya hai.

  4. Athar Munir says:

    Mein pronvincial dept mei employer hon. Mera GPF with interest hai. Mei usse without interest karwana chahta hon. Kya aisa possible hai. Aur iss ka tareeqa kiya hai.

  5. Asim says:

    Hi, I want to know that what is a procedure and requirement for HBA allownce for BPS-5. Hpow much amount he can get and is interest is charged or not?? Please reply at email

  6. zubair says:

    aoa.sst(cS) since 2009.and gp fund is 100000.can i get and how they recover

  7. Abrar Khalid says:

    My mother reteired from sevice in 2006.She did not get her GPF till date. What should we do.

  8. M.Adeel says:

    My G.P fund Account is without Interest.I have taken G.P fund advance one year back.Now I want to convert my G.P fund Account with interest.will AGPR charge interest from me on out standing amount.

  9. anwar hussain says:


    • Dear it is the same formula as the Motor car and Motor Cycle.

      • Yasir says:

        My question is:

        If someone has been availing interest on his GP Fund for last 15 years and just before the grand of HBA, he converted his GP Fund to interest Free to avoid paying interest on HBA, what does rules say about this situations? how much interest should be recovered from him?

        • According to mine knowledge an employee can set his GP Fund interest free during HBA Advance (BPS-16 & Above) and later on after finalization the amount of HBA he again can set his GP Fund with interest.

  10. ismail says:

    Since recruitment have been on contract basis since 2005 or to date. Regular contract employees are contributing CPF in their pays at the rate of 10 % PM. Please tell us about the calculation of interest rate over CPF Adv.

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