If your EPF account remains inactive for 36 months, you will not receive interest on it. EPFO has advised transferring funds from an old EPF account to a new one or withdrawing the money if you are currently unemployed. The interest rate on EPF for the financial year 2024-25 has been fixed at 8.25%.
PF account inactive: The Employees' Provident Fund (EPF) account is crucial for your future financial security. However, if an account remains inactive for 36 consecutive months without any transactions, it becomes inactive and will no longer earn interest. EPFO has instructed members to transfer funds from their old EPF accounts to a new one, or to withdraw the money if they are currently unemployed. An annual interest rate of 8.25% is applicable to EPF for the financial year 2024-25. EPFO will soon launch the EPFO 3.0 platform, which will offer digital claims and UPI facilities.
EPF Interest Rate and Calculation
For the financial year 2024-25, the annual interest rate on EPF has been fixed at 8.25 percent. This interest is calculated monthly on the closing balance of your account but is credited to your account only once a year. This means that the amount in your PF account at the end of the year will have interest added to it.
However, if your PF account remains inactive for 36 consecutive months, i.e., three years, you will not receive any interest on it. Inactivity means that no transactions are occurring in the account. Depositing or withdrawing money is considered a transaction, but the mere crediting of interest is not considered a transaction.
When a PF Account Becomes Inactive
According to EPFO regulations, if your PF account remains without any transactions for 36 months, it is declared inactive. Specifically, if you have retired at the age of 55, your account will only be considered active for three years. After the age of 58, your account will become inactive and will not accrue any further interest.
Therefore, it becomes essential to transfer your old PF account to a new one after changing or leaving a job. If you are currently not employed, it is advisable to withdraw the EPF money to prevent it from being stuck in an inactive account.
Ways to Keep Your PF Account Active
- If you are changing jobs, transfer your old PF account to the new one.
- It is advisable to withdraw PF money after leaving a job.
- Regularly check your account status on the EPFO website or mobile app.
- Make transactions in the account from time to time to prevent it from becoming inactive.
EPFO's Advice
EPFO has informed people on the social media platform X that if a PF account has not been transferred or withdrawn from for 36 months, it will become inactive and will not earn interest. EPFO states that if you are still working, you should transfer the funds from your old PF account to your new account. For those who are currently not working, withdrawing the PF money would be beneficial.
EPFO also mentioned that the account status can be easily checked through the EPFO website or mobile app. This allows you to know in a timely manner whether your account is active or inactive.
EPFO 3.0: New Digital Platform
EPFO is preparing to launch its new digital platform, EPFO 3.0. It was initially scheduled for launch in June 2025 but was delayed due to technical testing. The aim of the new platform is to expedite claim processing and provide digital facilities to users. This will include withdrawals via UPI, online transactions, and checking account status.
With the introduction of this platform, the processes for PF transfers and withdrawals will become even simpler. This will prove to be very helpful for employees and will also facilitate in keeping the account active.
