The Government of Andhra Pradesh has hiked the interest rate on General Provident Fund (GPF) of Employees of State Government. The interest rate has been increased to 8.6 percent from 8 percent. The hiked interest rates will be calculated from 1st December 2011. Before this, interest rate was at 8 percent from 1st April to 30th November 2011. The decision has been taken on 10th May 2012.
The increased GPF rates will be applicable for other Provident Fund Schemes such as Electricity Department Provident Fund, Sate Government Life Insurance Fund, Employees Fund of Govt. Distilleries, Emergency and Compulsory Funds etc.
State Govt. of Andhra Pradesh usually adjusts GPF rates every year according to the interest rates of GPF for Central Government employees. The Center has announced 8 percent interest in April 2009 and the State Government has followed the same rate from December 2009. The present hike is also in accordance with the GPF of Central Government employees.