GP Fund Deduction 2026 for Federal Employees in Pakistan: Rs 722 to Rs 17,605 a Month

From the pay for August 2026, paid on 1 September, federal government employees pay a new fixed monthly GP Fund subscription. It runs from Rs 722 in BS-1 to Rs 17,605 in BS-22. The Finance Division set the rates on 13 August 2026, and it set the profit on GP Fund balances for 2025-26 at 12.05 per cent.

If your pay slip shows a bigger GPF deduction since September, this is why. The new Basic Pay Scales 2026 raised the pay scales, and the General Provident Fund subscription follows the scale. We read both Finance Division memos on finance.gov.pk and checked every figure in the table against the percentage the memo prescribes.

The GP Fund is your own savings, cut from your pay

The General Provident Fund (GP Fund or GPF) is a savings account that government employees in pensionable service pay into every month. The money stays yours. The government adds profit each year, and you get the balance back when you retire.

That makes it different from your pension, which the government pays from its own budget. You can also borrow from the GP Fund during service, and the balance goes to your family if you die in service. Think of it as forced savings with a decent annual return. The deduction hurts each month, but it is the one part of a government package that builds a lump sum.

Monthly GPF deduction for BS-1 to BS-22 in 2026

The Finance Division memo of 13 August 2026 fixes one monthly amount for each pay scale. It is not worked out on your own basic pay. It is worked out on the mean, the midpoint of your scale. BS-1 pays 3 per cent of that mean, BS-2 to BS-11 pay 5 per cent, and BS-12 to BS-22 pay 8 per cent.

We checked the arithmetic. 3 per cent of the BS-1 mean of Rs 24,080 is Rs 722. 5 per cent of the BS-11 mean is Rs 2,306. And 8 per cent of the BS-22 mean of Rs 220,060 rounds to Rs 17,605. Every row matches its percentage.

Notice the jump between BS-11 and BS-12. The rate rises from 5 to 8 per cent, so the deduction goes from Rs 2,306 to Rs 3,964. A promotion into BS-12 brings a GPF rise of Rs 1,658 a month, which eats into the first pay rise more than most people expect. The pay scales themselves are explained in the Revised Basic Pay Scales 2026.

The new deduction started with August pay

The memo says the new amounts apply to pay for August 2026, paid on 1 September 2026, "until further orders". So September's pay slip was the first with the new figure. There is no option to pause it during leave or training.

The one exception is extraordinary leave without pay. If you are on that, there is no pay to deduct from. On every other kind of leave, and during a training course, the subscription carries on.

Check the GPF line on your pay slip against the table. If it still shows the old amount after August, or a figure that does not match your scale, raise it with your Drawing and Disbursing Officer, the officer who handles pay in your office. Mistakes are easier to fix in the same month than at retirement.

1. Find your pay scale on your pay slip, for example BS-16.
2. Look up the monthly GPF amount for that scale in the table above.
3. Compare it with the GPF deduction line on your September or October slip.
4. If they differ, ask your Drawing and Disbursing Officer to correct it, in writing.
5. Keep copies of the slip and your request until the correction shows.

GP Fund profit is 12.05 per cent for 2025-26

A separate Finance Division letter of 12 August 2026 sets the profit, called mark-up, on GP Fund balances for 2025-26 at 12.05 per cent. That is lower than the two years before: 12.46 per cent for 2024-25 and 13.97 per cent for 2023-24.

To get a feel for the numbers: a balance of Rs 1,000,000 held for the whole of 2025-26 would earn about Rs 120,500 at 12.05 per cent. Money added month by month earns less in its first year, because it sits in the fund for fewer months. The rate falls as general interest rates fall, so do not expect the high-13s again soon.

What you get at the end of service is separate from your pension and your gratuity. The way those are worked out, and what a private employer owes instead, are set out in gratuity and provident fund rules in Pakistan. When retirement comes, your GP Fund final payment is part of the government pension case paperwork.

Common questions

How much GPF is deducted for BS-17 in 2026?

Rs 7,619 a month, from August 2026 pay. That is 8 per cent of the BS-17 mean of Rs 95,240.

How much GPF is deducted for BS-16 in 2026?

Rs 5,962 a month. BS-16 pays 8 per cent of its mean of Rs 74,520.

What is the GP Fund profit rate for 2025-26?

12.05 per cent, set by the Finance Division on 12 August 2026.

Can I stop GPF deductions while on leave?

No. The memo says there is no option to postpone during leave or training, except extraordinary leave without pay.

Do these rates apply to provincial employees?

The memo is for federal civil employees. Provinces issue their own GPF orders, so check your provincial finance department.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked at about 5:45 am PKT on 10 October 2026. We read two Finance Division documents on finance.gov.pk: Office Memorandum No. F.N. 2(1)R-7/2026-0001 of 13 August 2026, "Uniform Rates of Subscription towards General Provident Fund", and letter No. 8(1)GS-I/2018-0001 of 12 August 2026, "Rate of Mark-up on State Provident Fund i.e. General Provident Fund for the Fiscal Year 2025-26". The Rs 1,000,000 example is our own illustration. No Finance Division circular on the GP Fund had been posted in October when we checked.